After a holiday-shortened week, the market didn’t offer much support for live or feeder cattle futures to trade higher. Cash trade was steady to lower, and boxed beef prices continue to decline, although at a slower pace than a week earlier. Monday’s holiday also led to a much smaller supply of processed cattle.
Live cattle futures traded mostly lower all week. The July contract closed at $119.27 and the October contract at $125.45, about $4 lower than a week earlier, respectively.
Cash trade through Thursday was mostly steady, with live steers selling from $118-125 and reaching as high as $127 on some Thursday trades. Live steers mostly sold around the $124 mark. Dressed steers sold from $196-200, averaging about $197. Formula cattle are selling around the $200 mark, although 32,900 head averaging 859 lbs. sold for $205.57 on Wednesday.
Cash trade for the first full week of July totaled 86,819 head. Live steers averaged $123.99 and dressed steers averaged $198.24. ShayLe Stewart, DTN livestock analyst, remarked that packers’ purchases that week made their need to buy aggressively minimal last week.
“With cattle supplies growing more and more thin in the North, packers are buying cattle with time and protecting themselves from having to support the cash cattle market in the weeks ahead,” she said.
Central Stockyards’ Fed Cattle Exchange offered 5,191 head at its weekly Wednesday auction. Of that, a total of 786 head sold (600 heifers, 86 steers, 100 mixed). Texas/Oklahoma/New Mexico sold the brunt of the offering, with 700 head of heifers and 100 mixed lots averaging $120. Kansas sold the remaining 86 steers, which averaged $119. Opening bids for other lots ranged from $117-120.
Slaughter through Thursday totaled 367,000 head, greatly behind usual levels due to the Fourth of July holiday on Monday. Slaughter on the observed holiday totaled only 8,000 head. The same time a year earlier, slaughter totaled 467,000 head. USDA released actual slaughter numbers for the week ending June 26, which totaled 660,332 head.
Boxed beef prices continued to see declines, although not as drastic as a week earlier. The Choice cutout lost about $2.75 in a week to close at $284.90, and the Select cutout lost $4.85 to close at $262.08.
Feeder cattle
Feeder futures traded mostly lower last week, but were able to find about $1 more in support compared to a week earlier. The August contract closed at $157.32 and the September contract at $160.02. Corn traded lower, back under $7 after finding great gains over the past couple of weeks. The July contract closed at $6.38 and the September contract at $5.36.
CME’s Feeder Cattle Index was up about $5 from the prior Thursday at $151.51.
“The live cattle contracts haven’t aided in the feeder cattle market’s rescue, and the week’s cash cattle trade hasn’t been anything wildly supportive either,” Stewart said.
“Buyers have been aggressively buying feeders throughout the countryside as cost of gains continue to scale lower, but the resistance looming at $160 on board is a force that the market can’t seems to reckon with just yet.”
Many livestock auctions did not hold a sale last week due to the holiday.
Kansas: Winter Livestock in Dodge City sold 1,163 head Wednesday. Compared to two weeks earlier, feeder steers 525-900 lbs. sold $2-3 higher. Heifers 525-850 lbs. sold $2-3 higher. There was no recent comparison on steer and heifer calves, although a higher trend was noted. A group of fancy steers averaging 770 lbs. averaged $155.
Nebraska: Bassett Livestock Auction in Bassett sold 7,824 head Wednesday at their Annual BBQ Yearlings and Fall Calf Auction. Steer calves 450-700 lbs. sold $3-8 higher and 750-1,000-lb. steers traded $5-13 higher. Heifer calves 500-700 lbs. traded $7-11 higher and 750-900-lb. heifers traded $8-12 higher. Benchmark steers averaging 779 lbs. sold between $164-172. — Anna Miller, WLJ managing editor
