Boxed beef prices soared to new highs this past week amid tighter supplies and reduced slaughter output.
Live cattle futures continued their ascent higher on the nearby contract, up more than $5 on the June contract to $228.20, but steady on the August contract at $216.95.
“It’s another calm trading session for CME cattle futures as the market continues to consolidate after recent gains,” wrote Cassie Fish, market analyst, in The Beef on Thursday. “Only spot June live cattle, supported by its $10/cwt discount to cash, is making new contract highs daily with ease.”
Cash trade through Thursday totaled about 20,000 head. Live steers sold from $233-242, and dressed steers sold from $380-382.
“At least right now, it appears the average cash prices this week will beat last week by about $1, another all-time high,” Fish said.
Cash trade for the week ending June 8 totaled 78,808 head. Live steers averaged $237.19, and dressed steers averaged $380.40.
Slaughter through Thursday totaled about 456,000 head, compared to 477,000 head a week earlier. Total slaughter for a week earlier is projected at 582,000 head. Actual slaughter for the week ending May 31 was 487,605 head. The average steer dressed weight was 940 lbs., 2 lbs. above the prior week.
“As the packing industry fights red ink exacerbated by the monster rise in cattle costs last week, expectations are for an extremely small slaughter this week at sub-570k head,” Fish said.
Boxed beef prices climbed higher over the week, up more than $10 on the Choice cutout to $366.85 and up about $7 to $363.07 on the Select cutout.
“With less product available, end users are forced to compete over limited supplies resulting in all-time highs being etched daily this week,” Fish said.
Feeder cattle
Feeder cattle futures closed higher over the week. The August contract gained about $2 to close at $311.25, and the September contract also gained about $2 to close at $310.55.
The CME Feeder Cattle Index gained about $10 to close at $314.62.
Corn futures traded sideways, down a penny on the July contract to $4.38 and down 6 cents on the September contract to $4.26.
“Seasoned veterans noted a change in the appetite for calves for grazing in the auction barns across the country,” the Cattle Report said on Thursday. “Interest was turning to heifers and cows and bred heifers due to simple economics.”
Iowa: Russell Livestock in Russell sold 2,830 head on Monday. Compared to the last auction two weeks earlier, steers sold $4-27 higher. Heifers under 650 lbs. sold $2-22 higher, while heifers over 650 lbs. mostly sold $4-8 lower. Benchmark steers averaging 705 lbs. sold for $336-368.25, averaging $364.68.
Missouri: Joplin Regional Stockyards in Carthage sold 7,000 head on Monday. Compared to the last auction, feeder steers and heifers sold steady to $5 higher. Benchmark steers averaging 722 lbs. sold for $322-338, averaging $330.08.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 4,500 head on Monday. Compared to the last auction, feeder steers and heifers sold $5-10 higher. Steer and heifer calves were lightly tested and sold mostly steady. Benchmark steers averaging 726 lbs. sold from $317-336.50, averaging $323.02. — Anna Miller Fortozo, WLJ managing editor
