Cash trade in the South held steady at $188, encouraging traders to boost cattle futures by triple digits. Boxed beef prices are continuing their post-holiday slide.
Live cattle closed higher, with the August contract up a little over $2 to $184.27 and the October contract up $2.07 to $185.57.
Cash trade through Wednesday was about 10,300 head. Live steers sold between $187-188, and there were not enough trades for a trend on dressed steers.
Cash trade through Sunday totaled 82,802 head. Live steers averaged $194.64, and dressed steers averaged $312.69.
“Packer bids at steady money surfaced in the South this morning at $188 and trade has developed there in Kansas and Texas,” Cassie Fish, market analyst, wrote on Wednesday for The Beef. “This steady trade ignited a triple-digit rally in lead August LC and double-digit elsewhere as the market made new highs for the move and reached the highest point since the day of the big break, July 9. The market has even pushed back above its 10-day moving average. The North, ever the holdouts as of late, is still to trade.”
The national weekly direct beef type price distribution for the week of July 1-8 was the following on a live basis:
• Negotiated purchases: $194.93.
• Formula net purchases: $196.48.
• Forward contract net purchases: $192.23.
• Negotiated grid net purchases: $194.19.
On a dressed basis:
• Negotiated purchases: $312.70.
• Formula net purchases: $310.61.
• Forward contract net purchases: $296.50.
• Negotiated grid net purchases: $312.06.
Slaughter through Wednesday was estimated to be 360,000 head, 6,000 head above the prior week. Total slaughter for a week earlier is estimated at 601,000 head. Beef production under federal inspection for the week ending July 13 was 506 million pounds.
Boxed beef prices were lower, with the Choice cutout down $3.49 to $318.16 and the Select cutout down close to $5 to $298.44.
Analysts released the pre-report estimates for Friday’s release of the Cattle on Feed report. The consensus was that cattle on feed were expected to be 101.2% for feedlots of 1,000 head or greater in July. Placements in June were estimated to be 97%, and marketings for June are predicted at 91.8%.
Feeder cattle
Feeder cattle futures also gained triple digits, with the August contract up $2.40 to $258.55 and the September contract up $3.20 to $259.55. The CME Feeder Cattle Index was down 21 cents to $261.32.
Corn futures were mixed, with the September contract down 2 cents to $3.98 and the December contract unchanged at $4.11.
Iowa: Russell Livestock in Russell sold 1,207 head on Monday. There was no recent sale for comparison. Benchmark steers averaging 741 lbs. sold from $260-278, averaging $273.07.
Missouri: Joplin Regional Stockyards in Carthage sold 6,402 head on Monday. Compared to a week earlier, feeder steers sold $2-4 lower and feeder heifers sold steady to $3 lower. Benchmark steers averaging 717 lbs. sold from $263-272, averaging $265.89.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 6,500 head on Monday. Compared to a week earlier, there were not enough comparable sales to establish a trend. Benchmark steers averaging 781 lbs. sold from $243-262, averaging $258.50.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 2,735 head on Monday. Compared to the last sale held two weeks earlier, steers 950 lbs. sold $12-13 higher. Heifers 750 lbs. sold steady, 850 lbs. sold $2 lower and 900 lbs. sold steady. Benchmark steers averaging 799 lbs. sold for $265.
(Editor’s note: This report was prepared using information available as of Wednesday afternoon due to an earlier press schedule.) — Charles Wallace, WLJ contributing editor
