Live cattle were higher today. The June contract was up $1.12 to $118.70 and the August contract was up $1.47 to $120.02.
“Looking to next week, the live cattle complex could be subject to some stark changes as boxed beef prices are expected to be lower and the cash cattle market could feel pressured as well,” ShayLe Stewart, DTN livestock analyst, remarked.
A small amount of cash trade took place today with 2,733 head selling from $120-122. Dressed steers averaged $193. On the formula side, 27,000 head averaging 849 lbs. sold for $192.85.
Slaughter for the day is estimated at 119,000 head. Tomorrow’s slaughter is projected to reach about 70,000 head. This will bring the week’s total to about 665,000 head, finally back around that 670,000 level the industry is aiming for.
Boxed beef prices may have peaked because both cutouts were down today on 78 loads. The Select cutout took the brunt of the hit, down over $5 to $305.21. The Choice cutout also lost about 69 cents
Feeders were in the green by a couple dollars today. The August contract was up $2.77 to $151.17 and the September contract was up $2.62 to $153.52. The CME Feeder Index was up 32 cents to $140.23. Corn took a hit today, down 14 cents on the July contract to $6.84. The September contract also lost about 8 cents to $6.29.
“Drought continues to be the matter of discussion at sale barns as producers are having to fight dire drought situations in a lot of the Northern cow-calf states,” Stewart said.
South Dakota: Mitchell Livestock Auction in Mitchell sold 8,106 head Thursday. Steers under 800 lbs. were not well tested last week to offer a comparison; over 800 lbs. sold steady to $1 higher with an instance of $4 higher on 950-1,000 lbs. Feeder heifers sold steady to $2 higher with an instance of $4 higher on 800-850 lbs. Benchmark steers averaging 771 lbs. sold between $140-147. — Anna Miller, WLJ managing editor