Wednesday market
Cattle futures continued their downward trend, but are staying within the 10- and 20-day moving averages.
Live cattle futures closed lower, with the June contract down $1.20 to $213.91 and the August contract down $1.12 to $208.17.
Cash trade was minimal, with 252 head sold.
On the formula side, 29,200 head averaging 911 lbs. sold for an average of $359.35.
Cash trade for the week ending May 25 was 55,464 head. Live steers averaged $227.61, and dressed steers averaged $361.76.
“The processors will enter this week with a very light inventory of livestock for slaughter, but this week’s slaughter volume is expected to be record-breaking small,” the folks at the Cattle Report wrote. “Not surprisingly, show lists in Kansas and Texas were up while Nebraska was down. Packers will seize on the anticipated volume to regain some bargaining power with the retailers. Cattle owners will attempt to maintain their leverage on cash prices.”
The national weekly direct beef type price distribution for the week of May 19-26 was the following on a live basis:
• Negotiated purchases: $227.42.
• Formula net purchases: $225.61.
• Forward contract net purchases: $205.17.
• Negotiated grid net purchases: $225.12.
On a dressed basis:
• Negotiated purchases: $361.80.
• Formula net purchases: $355.02.
• Forward contract net purchases: $314.03.
• Negotiated grid net purchases: $354.15.
Today’s slaughter is estimated to be 119,000 head, 1,000 head lower than the previous week.
Boxed beef prices were higher on 138 loads, with the Choice cutout up $3.57 to $365.42 and the Select cutout up 91 cents to $351.74.
Feeder cattle
Feeder cattle also closed triple digits lower, with the August contract down $2.52 to $295.62 and the September contract down $2.77 to $294.47.
The CME Feeder Cattle Index was up 63 cents to $296.09.
Corn futures closed lower, with the July contract down 8 cents to $4.51 and the September contract down 4 cents to $4.29.
Missouri: Ozarks Regional Stockyards in West Plains sold 1,015 head on Tuesday. Compared to the last auction, feeder steers and heifers sold steady. Steer and heifer calves sold steady to weak. Benchmark steers averaging 789 lbs. sold for $295-303, averaging $295.89.
Texas: Lonestar Stockyards in Wildorado sold 662 head on Tuesday. Compared to the last auction, feeder steers and heifers traded $2-4 higher. Calves were too lightly tested for a market trend. A group of steers averaging 753 lbs. sold for $290.
Utah: Producers Livestock in Salina sold 252 head on Wednesday. Compared to the last auction, feeder steers weighing less than 600 lbs. sold $6-11 higher, while steers over 600 lbs. sold $1-4 lower. Feeder heifers sold $2-7 lower. A group of steers averaging 721 lbs. sold for $265-298, averaging $288. — Charles Wallace, WLJ contributing editor
