Thursday markets
Cattle futures market bulls are showing renewed resilience, with both live and feeder cattle contracts rebounding and trading higher after price setbacks.
Live cattle futures closed higher, with the June contract up $1.60 to $215.52 and the August contract up $1.90 to $210.07.
“Helping traders take a more active approach in the market is the fact that boxed beef prices are continuing to trade higher and some early sales in the fed cash cattle market have been slightly higher,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments. “Some light trade has been noted in the South at $221-222, which is $1 higher than last week’s weighted average. Asking prices are noted in the South at $222 but are still not established in the North. Bids of $231 are noted in Nebraska, but no cattle have traded at this price yet.”
As of WLJ press time, USDA has not released the daily afternoon cash report. As of this morning, about 4,300 head were sold between $222-229.
Today’s slaughter is estimated to be 120,000 head, 4,000 head above the prior week.
Actual slaughter for the week ending May 17 was 566,109 head. The average steer dressed weight was 938 lbs., 7 lbs. below the previous week.
Boxed beef prices were higher on 118 loads, with the Choice cutout up 67 cents to $366.09 and the Select cutout up $1.90 to $353.64.
Feeder cattle
Feeder cattle futures recovered most of the week’s losses, with the August contract up $4.30 to $299.92 and the September contract up $4.37 to $298.85.
The CME Feeder Cattle Index was down 41 cents to $295.84.
Corn futures were lower, with the July contract down 4 cents to $4.47 and the September contract down 2 cents to $4.27.
Nebraska: Bassett Livestock in Bassett sold 2,992 head on Wednesday. Due to a lack of recent auction, an accurate trend could not be made. Benchmark steers averaging 724 lbs. sold for $334-359, averaging $350.06.
New Mexico: Clovis Livestock in Clovis sold 1,175 head on Wednesday. Compared to the last auction, steer calves 400-600 lbs. sold $6-13 lower, with the exception of 450-500 lbs. were $8 higher. Feeder steers 600-750 lbs. sold steady to $3 lower. Heifer calves 400-550 lbs. sold $15-23 lower and 550-600 lbs. were $18 higher. Feeder heifers 600-850 lbs. sold $10-15 higher, except for 700-750 lbs. traded $4 lower. A group of steers averaging 714 lbs. sold for $301-310, averaging $304.22.
Oklahoma: OKC West in El Reno sold 7,833 head on Wednesday. Compared to the last auction, feeder steers and heifers sold steady to $5 higher. Heifers returning to grass traded $7-11 higher. Steer and heifer calves sold $8-13 higher. Benchmark steers averaging 761 lbs. sold for $300-316, averaging $311.50. — Charles Wallace, WLJ contributing editor
