The markets were pressured under summer heat last week. Fears of cattle overheating in feedlots made cattle feeders more willing to sell, and the heat had a smothering effect on the futures as well.
Once it developed on late Wednesday and Thursday, the cash fed cattle trade was just about where it was expected to be; steady to slightly higher than the week before. With over 68,000 head of negotiated cash fed cattle confirmed sold for the week by Thursday afternoon, prices came in at $111-116 (average $113.44) live and $182-185 ($182.63) dressed.
The near-term futures did not fare much better. The live contracts of August and October lost a net $1.08 with a Thursday settlement of $107.40 and $1.73 with $108.25, respectively.
The situation was similar with the near-term feeder cattle futures. The August contract lost a net $2.17 to settle at $139.43, and the September contract lost a net $3.07 with $139.48.
Most of the feeder cattle auctions were back up and running last week, having shaken off all of the Independence Day-related hiatuses. For the most part prices on feeder cattle were up, but the offering of unweaned calves was noticeably higher than in recent weeks. Medium and large #1 steers weighing between 700-800 lbs. sold mostly between $130s-160s, with unweaned calves mostly trading at at least a $10 discount.
California: Over 4,400 head of cattle sold last week at the Cattlemen’s Livestock Market in Galt. Prices on feeder cattle were called steady. Number 1, 7-weight steers sold between $122-147.
Iowa: The Russell Livestock auction sold 1,410 head of feeder cattle, fairly steady with the prior sale’s volume. Prices were mixed however. On light steer calves, prices were down $5, but on steers over 550 lbs. they were up $4-10 with preference going to heavier animals. Heifer calves under 550 lbs. were up $5-8, and heavier heifers were up $10-12. Trade was called active with good demand. Benchmark steers sold $139-150.50.
Kansas: The Winter Livestock auction sold almost double the number of cattle last week compared to the week before. There were too few comparable sales for an accurate market trend, but steers were said to have a lower undertone, and 8-weight heifers were said to have a higher undertone. Demand was called moderate on the average-quality offering. One 12-head lot of benchmark steers weighing 719 lbs. averaged $132.37.
Nebraska: More cattle sold for higher money at the Huss Livestock Market last week. Over 2,160 head of feeders sold with steers mostly selling up $3-7 and heifers up $4-8. Demand was called good. Benchmark steers sold between 146-160.50.
New Mexico: The sales volumes were a slightly weak steady last week compared to the week before. Prices were mixed on feeder cattle, with light steer calves selling steady to $4 higher, and heavier steers selling $1-4 lower. Heifers were up $1-3, with the exception of 7-weights, which were down $1. Number 1, 7-weight yearling steers sold between $130.50-139.50, while one small lot of unweaned calves brought $125.50.
Oklahoma: The OKC West-El Reno sale sold over 9,000 head of feeders last week, though even that was down compared to the 11,375 head sold the week before. Prices were lower on all comparable sales, with steers down $1-4 mostly and instances of $6-8 on heavier steers. Heifers were down $1-3. Calves were too lightly tested for a market trend. The offering of benchmark steers was split between yearlings and unweaned calves, with prices ranging from $138.50-147.
South Dakota: The Mitchell Livestock Auction sold less than half of the volume of feeder cattle last week compared to the week before. There were few comparable sales. Heavy feeder steers were called steady to $3 lower, while the opposite was true for heavy heifers. There were no #1, 7-weight steers reported sold last week. Six-weights ranged from $167-173 and 8-weights ranged from $134-147.10.
The cutouts ended the week fairly sideways. The Choice contract gained a net 54 cents to close Thursday at $213.34 and the Select cutout lost a net 99 cents with $188.61.
“Beef cutout values continue to encounter selling pressure,” commented Andrew Gottschalk of Hedgers Edge. “Our objective for a summer low for Choice values is $205. The ‘dog-days’ of summer seldom treat the beef cutout in a positive manner.” — Kerry Halladay, WLJ editor
