Cattle futures drifted lower over the week as traders waited for the release of the monthly Cattle on Feed report and the bi-annual cow herd inventory report.
Live cattle futures traded mostly sideways but ultimately closed lower. The August contract lost about $2 to close at $225.40, and the October contract lost about $2 to close at $221.37.
“Knowing later this week both the monthly Cattle on Feed and bi-annual Cattle inventory report will be shared, traders simply aren’t willing to advance the contracts with little to no fundamental support ahead of those big hitting reports being released,” ShayLe Stewart, DTN livestock analyst, wrote in her Wednesday midday comments.
Cash trade through Thursday totaled about 33,000 head. Live steers sold from $229-232, and dressed steers sold from $360-365.
Cash trade for the week ending July 19 totaled 55,813 head. Live steers averaged $238.44, and dressed steers averaged $377.19.
“All told, cash is down $30/cwt in July and $33 from the May top,” wrote Cassie Fish, market analyst, in The Beef on Thursday.
Slaughter through Thursday totaled about 411,000 head, compared to 433,000 head a week earlier. Total slaughter for a week earlier is estimated at 525,000 head. Actual slaughter for the week ending July 11 was 525,891 head. The average steer dressed weight was 968 lbs., up 5 lbs. from the previous week.
“With each week, packers improve their position as box prices fall less than cash prices for fed cattle,” the Cattle Report wrote on Thursday. “The status for fed supplies will remain tight, but many sellers are demoralized and futures have provided ammunition to the negative mind set of sellers.”
Boxed beef prices saw another week of losses. The Choice cutout lost about $6 to close at $362.87, and the Select cutout lost about $7 to close at $348.75.
CME Group launched its new beef trim futures contracts on July 20. The 50% and 90% lean beef trim futures represent weekly volume-weighted average prices of both formulated and negotiated sales of 90% and 50% lean beef trimmings reported by USDA. Each contract represents 20,000 pounds of beef, and prices are reported in cents per pound, equivalent to dollars per hundredweight.
On Thursday, the 50% lean beef trim August contract closed at $178 and the September contract at $168. The 90% lean beef trim August contract closed at $457, and the September contract at $455.
Feeder cattle
Feeder cattle futures also closed lower over the week. The August contract lost about $3 to close at $343.77, and the September contract lost less than a dollar to close at $339.85.
The CME Feeder Cattle Index lost about $16 to close at $353.12.
Corn futures were higher. The September contract gained 15 cents to close at $4.64, and the December contract gained 14 cents to close at $4.87.
Missouri: Joplin Regional Stockyards in Carthage sold 3,510 head on Monday. Compared to a week earlier, feeder steers under 750 lbs. sold $15-35 lower with heavier weights selling $2-15 lower. Feeder heifers sold $15-35 lower. Benchmark steers averaging 732 lbs. sold from $354-355, averaging $354.47.
Oklahoma: Oklahoma National Stockyards in theOklahoma City sold 3,200 head on Monday. Compared to the previous sale, feeder steers and heifers sold $15-25 lower. Steer and heifer calves sold $20-30 lower, with spots up to $40 lower. Benchmark steers averaging 768 lbs. sold from $346-361.50, averaging $353.30. — Anna Miller Fortozo, WLJ managing editor
