Thursday markets
Cattle futures mustered some support, closing higher despite lower cash trade.
“CME cattle futures opened sharply lower again this morning but this time have staged a rally back to unchanged on the week in some contracts,” Cassie Fish, market analyst, wrote in The Beef. “The action is giving bulls hope that after a 11.32% correction in five weeks in August LC, the break is over for now. Markets may do things in a hurry anymore, but a $28 reset in a little more than a month still gets a lot of people’s attention.”
Live cattle futures closed higher, with the August contract up $2.20 to $225.40 and the October contract $2.17 higher to $221.37.
Cash trade was light, with 3,431 head sold. Live steers sold for $230, and dressed steers sold for $363-365. On the formula side, 21,900 head averaging 945 lbs. sold for an average of $381.82.
Today’s slaughter is estimated to be 108,000 head, 1,000 head lower than last week.
Actual slaughter for the week ending July 11 was 525,891 head. The average steer dressed weight was 968 lbs., up 5 lbs. from the previous week.
“Today the USDA reported steer weights up 5 pounds from a week ago and at 968 pounds,” Fish wrote. “Carcass weights continue to run about 30 pounds above a year ago, though that distance will narrow as the market moves into Q4. No doubt the slaughter pace from now onward will ultimately have a say about that as cattle on feed have, for the most part, finally been pushed to their maximum out-weight. Meaning, it will be possible over the next several months to once again lose currentness unless the slaughter pace picks up.”
Boxed beef prices were lower on 124 loads, with the Choice cutout down 63 cents to $362.87 and the Select cutout $1.82 lower to $348.75.
CME trim futures remain unchanged. The 50% trim August contract was $178 and the September contract was $168. The 90% trim August contract was $457 and the September closed at $455.
Feeder cattle
Feeder cattle futures also closed higher, with the August contract up $2.60 to $343.77 and the September contract $3.65 higher to $339.85.
The CME Feeder Cattle Index was down $3.10 to $353.12.
Corn futures closed higher, with the September and December contracts up 2 cents to $4.64 and $4.87, respectively.
Nebraska: Bassett Livestock in Bassett sold 2,925 head on Wednesday. Compared to the last auction two weeks ago, there were limited heifer offerings, with 750 lbs. trading $15 lower. Steers weighing 750-1,050 lbs. also saw significant downward pressure, trading $25 lower. Benchmark steers averaging 759 lbs. sold for $390-392, averaging $390.27.
New Mexico: Clovis Livestock in Clovis sold 1,056 head on Thursday. Compared to the last auction, steer calves and heifer calves sold lower. Feeder heifers and heifer calves were lower also. A group of benchmark steers averaging 774 lbs. sold for $325-342, averaging $331.89.
Oklahoma: OKC West in El Reno sold 4,328 head on Wednesday. Compared to the last auction, feeder steers sold $5-15 lower, in some instances $20 lower. Feeder heifers sold $3-10 lower. Demand was moderate to good for feeder cattle despite cattle futures once again trading sharply lower. Benchmark steers averaging 768 lbs. sold for $341-362, averaging $357.08.
South Dakota: Hub City Livestock in Aberdeen sold 2,226 head on Wednesday. Compared to the last auction, steers 900-949 lbs. sold $5 lower, and 950-1,099 lbs. traded $10-15 lower. Heifers were not well compared. Benchmark steers averaging 783 lbs. sold for $380. — Charles Wallace, WLJ contributing editor
