Thursday markets
Cattle futures closed lower on spotty cash trade and a lack of fundamental support.
Live cattle futures closed lower, with the August contract down $2.37 to $235.25 and the October contract $1.95 lower to $231.60.
“Unfortunately, the same song and dance is seen today in the live cattle complex as the contracts continue to scale lower,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments.
Cash trade was moderate, with 16,504 head sold. Live steers sold for $248, and dressed steers sold for $385- $ 393. On the formula side, 27,100 head averaging 939 lbs. sold for an average of $407.43.
“Some light cash cattle trade has begun to develop as a handful of cattle have traded at $248 in Texas; but not enough have sold to say any sort of trend has been solidified just yet,” Stewart noted. “Bids of $248 are also noted in Kansas and bids of $393 have surfaced in Nebraska.”
Today’s slaughter is estimated to be 112,000 head, 3,000 head above last week.
Actual slaughter for the week ending June 27 was 535,705 head. The average steer dressed weight was 961 lbs., down 7 lbs. from a week earlier.
Boxed beef prices were mixed on 86 loads, with the Choice cutout down 39 cents to $380.81 and the Select cutout up 40 cents to $363.49.
Feeder cattle
Feeder cattle futures lost over $5, with the August contract down $5.90 to $356.15 and the September contract $5.65 lower to $353.
“Sadly, the higher momentum the feeder cattle contracts had through Wednesday’s close ran dry as Thursday the market is back to following the live cattle contracts lower,” Stewart wrote.
“Currently the spot August contract is trading just below its 100-day moving average as weakness continues to spread.”
The CME Feeder Cattle Index was down $2.44 to $370.75.
Corn futures were lower, with the July contract down 7 cents to $4.27 and the September contract 3 cents lower to $4.31.
Nebraska: Bassett Livestock in Bassett sold 8,720 head on Wednesday. Compared to the last auction, steers and heifers traded unevenly steady. Demand was good with several buyers and active internet bidding throughout the day. Benchmark steers averaging 773 lbs. sold for $408-438, averaging $425.73.
Oklahoma: OKC West in El Reno sold 6,000 head on Wednesday. Compared to the last auction, Feeder steers sold $5-15 lower. Feeder heifers traded $10-15 lower. Steer and heifer calves sold $10-20 lower. Benchmark steers averaging 775 lbs. sold for $375-380, averaging $376.92. — Charles Wallace, WLJ contributing editor
