Tuesday markets
Cattle futures closed mixed as a lack of news spurred any fundamental support.
Live cattle futures closed on both sides of steady, with the August contract up 15 cents to $226.67 and the October contract 7 cents lower to $223.22.
Cash trade was light, with 823 head sold. Live steers sold for $232, and dressed steers sold for $375. On the formula side, 20,400 head averaging 955 lbs. sold for an average of $396.03.
“Packers are reluctant to pay anything above the low end of last week’s negotiated fed cattle price range, and there has been a tiny bit of trade there already,” Cassie Fish, market analyst, wrote in The Beef. “This week’s cash trade will be an interesting test of leverage for the packer because last week’s 16k head smaller buy than the prior week, reported at 56k head, appears to have placed them in need to replenish inventory this week.”
The national weekly direct beef type price distribution for the week of July 13-20 was the following on a live basis:
• Negotiated purchases: $238.67.
• Formula net purchases: $256.24.
• Forward contract net purchases: $239.94.
• Negotiated grid net purchases: $262.72.
On a dressed basis:
• Negotiated purchases: $377.52.
• Formula net purchases: $401.25.
• Forward contract net purchases: $380.49.
• Negotiated grid net purchases: $406.84.
Today’s slaughter is estimated to be 103,000 head, 8,000 head below the previous week.
Boxed beef prices were lower on 161 loads, with the Choice cutout down $3.19 to $366.91 and the Select cutout $1.22 lower to $354.23.
CME beef trim contracts closed lower since launching yesterday. The 50% trim August contract closed down $7 to $180 and the September contract was $15 lower to $168. The 90% trim contracts also closed lower, with the August contract down $5 to $460 and the September contract $6 lower to $455.
According to Fish, pre-report estimates for Friday’s Cattle on Feed report indicate that feedlots with 1,000 head or greater in July will be 2.2% higher. Placements in June are estimated to be down 2% from a year ago, and marketings for June is predicted to be 97%.
Feeder cattle
Feeder cattle futures closed lower, with the August contract down $2.45 to $349.55 and the September contract $1.27 lower to $344.97.
The CME Feeder Cattle Index was $4.32 lower to $359.71.
Corn futures closed higher, with the September contract up 3 cents to $4.52 and the December contract 2 cents higher to $4.75.
New Mexico: Roswell Livestock in Roswell sold 426 head on Monday. Compared to the last auction, Steer calves sold $15-25 lower, except for 450-500 lbs., which traded $5 higher. Feeder steers sold $20-30 lower, with a few $35 lower. Heifer calves sold $15-25 lower, except for 400-450 lbs., which were $ 10 higher. Feeder heifers sold $8-10 lower. A group of benchmark steers averaging 712 lbs. sold for $335-350, averaging $337.72.
Texas: Giddings Livestock in Giddings sold 981 head on Monday. Compared to the last auction, lightweight feeder steers and heifers under 400 lbs. were steady to $8 higher. Feeder steers over 400 lbs. sold $6-14 lower. Feeder heifers over 400 lbs. sold $6-12 lower. — Charles Wallace, WLJ contributing editor
