Tuesday markets
Cattle futures closed mostly lower despite news that Walmart and Sam’s Club are lowering prices on ground beef.
Live cattle futures closed lower, with the August contract down 67 cents to $238.42 and the October contract 62 cents lower to $234.02.
“Although midday boxed beef prices are higher, the live cattle contracts are still trading lower as traders need more than a little fundamental support to help turn this market around,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments. “But with the cash cattle market anticipated to trade steady at best, a steady to somewhat lower trend will likely continue to be the theme of this week’s trade for the live cattle contracts.”
Cash tarde was light, with only 120 head sold for $395. On the formula side, 27,800 head averaging 944 lbs. sold for an average of $411.88.
The national weekly direct beef type price distribution for the week of June 29 to July 6 was the following on a live basis:
• Negotiated purchases: $255.23.
• Formula net purchases: $263.42.
• Forward contract net purchases: $245.75.
• Negotiated grid net purchases: $263.52.
On a dressed basis:
• Negotiated purchases: $402.59.
• Formula net purchases: $412.65.
• Forward contract net purchases: $380.37.
• Negotiated grid net purchases: $408.44.
Today’s slaughter is estimated to be 110,000 head, the same as last week.
Boxed beef prices were mixed on 128 loads, with the Choice cutout down 71 cents to $385.77 and the Select cutout up 2 cents to $365.89.
“Boxed beef prices are trading below a year ago so far in July, the first time in a very long time,” wrote Cassie Fish, market analyst, in The Beef. “The move by Walmart and Sam’s Club to lower ground beef prices has been well publicized the last 24 hours and it’s hard to see how that’s a bad thing for the market. With the cutout below a year ago finally and likely to stay that way this quarter, will beef find some renewed interest by retailers? Will any of them follow Walmart’s lead?”
Feeder cattle
Feeder cattle futures were mixed, with the August contract 15 cents higher to $360.65 and the September contract 47 cents lower to $357.40.
The CME Feeder Cattle Index was 14 cents lower to $371.11.
Corn futures closed higher, with the July contract up a penny to $4.42 and the September contract up 5 cents to $4.43.
Many sale barns are not holding auctions this week due to the Fourth of July holiday. — Charles Wallace, WLJ contributing editor
