Thursday markets
Cattle futures closed lower as traders look for direction from the cash trade and boxed beef prices.
“Thus far, it’s been a quiet and mundane day for the livestock complex without much developing,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments. “With boxed beef prices lower and still no cash cattle trade developing, the live cattle futures are trading slightly lower into Thursday’s noon hour.”
Live cattle futures closed lower, with the June contract down $1.67 to $249.97 and the August contract $1.50 lower to $241.15.
Cash trade was again light, with 513 head sold.
On the formula side, 21,500 head averaging 941 lbs. sold for an average of $413.55.
“With only today and tomorrow left to trade fed cattle this holiday-shortened week, the cash trade has gotten off to a very slow start,” wrote Cassie Fish, market analyst, in The Beef. “Packers have been buying more cattle with time and are attempting to limit the upside in inventory prices to limit their already hefty losses at the plant level. Bids this morning have been noted at $253 and have been passed.”
Today’s slaughter is estimated to be 110,000 head, 1,000 head above last week. Actual slaughter for the week ending May 16 was 528,289 head. The average steer dressed weight was 976 lbs., 9 lbs. lower than the previous week.
Boxed beef prices were lower on 125 loads, with the Choice cutout down $2.40 to $392.32 and the Select cutout $3.71 lower to $385.58.
Feeder cattle
Feeder cattle also closed lower, with the August contract down $1.60 to $352.87 and the September contract $1.55 lower to $350.15.
The CME Feeder Cattle Index was down 94 cents to $367.26.
Corn futures closed higher, with the July contract up 3 cents to $4.55 and the September contract 4 cents higher to $4.64.
Nebraska: Bassett Livestock in Bassett sold 3,200 head on Wednesday. An accurate trend could not be provided due to a lack of a recent auction. Benchmark steers averaging 714 lbs. sold for $414-431, averaging $428.43.
Oklahoma: OKC West in El Reno sold 4,211 head on Wednesday. Compared to the last auction, feeder steers sold steady to $5 higher, except 600-700 lbs. traded $10 lower in a light test. Feeder heifers sold $4-8 lower, but the heifer market did improve as the sale progressed. Benchmark steers averaging 730 lbs. sold for $372.50-382, averaging $378.95.
South Dakota: Hub City Livestock in Aberdeen sold 2,756 head on Wednesday. Compared to the last auction, steers 950-999 lbs. sold $6-8 higher, with instances up to $10 higher, 1,000-1,049 lbs. traded $3-4 lower, and 1,050-1,099 lbs. were steady to $1 higher. Best test was on heifers 650-699 lbs., which sold $3 higher. Benchmark steers averaging 723 lbs. sold for $412-430, averaging $419.14.
Wyoming: Torrington Livestock in Torrington sold 1,839 head on Wednesday. An accurate trend could not be provided due to a lack of a recent feeder auction. Benchmark steers averaging 738 lbs. sold for $391-403.50, averaging $398.61. — Charles Wallace, WLJ contributing editor
