Cattle futures were up and down during the week as corn prices rose and cattle futures dropped one day, and vice versa the next. Live cattle futures were higher and feeder cattle futures traded sideways. Packers were holding out for steady cash trade prices on very light volume.
Live cattle futures were higher, with the August contract up $2.60 to $181.10 and the October contract up $1.22 to $181.52.
Cash trade was minimal, with 13,400 head sold through Thursday between $187-188.
Cash trade for the first week of August totaled 82,805 head. Live steers averaged $186.78, and dressed steers averaged $295.35.
“In the country, there has been very limited cash trade as packers do their best to hold cash prices at no better than steady,” wrote Cassie Fish, market analyst, in The Beef on Thursday. “A regional packers paid $186 in Kansas for some high-quality cattle, and it’s rumored $188, with time, was passed in northwest Iowa. Prices nationally have ranged from $176-190 live (mostly in the $180s), and $292-298 dressed, according to USDA, with 7.4K reported week to date.”
The national weekly direct beef type price distribution for the week of July 31 to Aug. 7 was the following on a live basis:
• Negotiated purchases: $186.29.
• Formula net purchases: $186.23.
• Forward contract net purchases: $179.98.
• Negotiated grid net purchases: $186.63.
On a dressed basis:
• Negotiated purchases: $295.17.
• Formula net purchases: $293.85.
• Forward contract net purchases: $273.06.
• Negotiated grid net purchases: $296.33.
Slaughter through Thursday was estimated to be 491,000 head, 3,000 head below a week earlier and 2,000 head below a year earlier.Slaughter for the week prior is estimated at 613,000 head, compared to a year ago at 648,000 head. Actual slaughter for the week endingJuly 29 was 615,823 head. The average steer dressed weight was 895 lbs., 2 lbs. above the prior week.
“It is likely that the tug of war between tight-fed cattle supplies and red packer ink will continue for weeks to come,” wrote Fish on Tuesday. “Until beef demand sparks, throughput will probably continue to be dialed down. This all paints the picture of a sideways market scenario—in futures and cash prices for the time being.”
Boxed beef prices were mixed, with the Choice cutout up 2 cents to $302.03 and the Select cutout down 51 cents to $277.80.
Feeder cattle
Feeder cattle traded sideways, with the August contract up a nickel to $248 and the September contract down 8 cents to $251.57. The CME Feeder Cattle Index was up 8 cents to $244.96.
“Demand continues to remain incredible throughout the countryside as video sales and sale barns alike are seeing tremendous interest from buyers as limited supplies are keeping market participants in a constant bidding war,” ShayLe Stewart, DTN livestock analyst, wrote on Wednesday. “The long-term outlook of strong 2024 live cattle/cash cattle prices is helping reassure buyers.”
Corn futures were higher, with the September contract up 3 cents to $4.83 and the December contract up 3 cents to $4.96.
Kansas: Winter Livestock in Dodge City sold 726 head Wednesday. There were not enough comparable sales for an accurate comparison, but a higher trend was noted. Benchmark steers averaging 739 lbs. sold for $250.
Missouri: Joplin Regional Stockyards in Carthage sold 4,500 head Monday. Compared to the prior sale, feeder steers and heifers sold steady to $4 higher. Benchmark steers averaging 708 lbs. sold from $241.50-258.
Nebraska: Bassett Livestock in Bassett sold 2,550 head Wednesday. Compared to the previous auction, there were a limited number of comparable offerings for yearlings, with 600–lb. steers trading $2 lower and 950–lb. steers trading $3 higher. Heifers 550 lbs. traded $2 lower, and 600 and 700–lb. heifers traded $3-10 higher. Benchmark steers averaging 738 lbs. sold between $272-277.75 and averaged $276.73.
New Mexico: Roswell Livestock in Roswell sold 1,096 head Monday. Compared to the previous auction, steer calves under 400 lbs. sold $3 lower and 400-600 lbs. were $10-18 higher. Feeder steers 650-700 lbs. were $9 higher. Heifer calves under 450 lbs. were $3 lower, and 450-600 lbs. sold $5-20 higher. A group of steers averaging 684 lbs. sold between $245-255, averaging $248.22.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 6,500 head Monday. Compared to a week earlier, feeder steers and heifers sold steady. Steer calves sold steady, and heifer calves sold $2-4 higher. Benchmark steers averaging 772 lbs. sold from $240-257, averaging$248.12.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 1,063 head on Monday. Compared to a week earlier, feeder steers sold with steady to lower undertones. Feeder heifers sold steady to higher. Lightweight calves just weaned off the cow sold outstandingly. Benchmark steers averaging 767 lbs. sold from $237-248, averaging $243.03. — Charles Wallace, WLJ contributing editor
