Tuesday markets
Cattle futures traded higher today, as corn futures traded mixed on the latest USDA Crop Progress Report, showing a slight decline in the good-to-excellent rating.
Live cattle futures were higher, with the June contract up $2.12 to $123.10 and the August contract higher $2.15, closing at $123.17.
Cash trade was moderate, with 4,064 head selling between $125-126. Dressed steers sold at $197. Trade in the Southern Plains and the western Corn Belt was mostly inactive on light demand. On the formula side, 20,900 head averaging 862 lbs. sold for $197.63.
Slaughter for the day is expected to be 121,000 head—the same as last week.
“This week’s slaughter is anticipated to be 660k to 663k while the kill the following two weeks will be light due to how the July 4th holiday falls,” Cassie Fish, market analyst, said in The Beef. “Best case expectations are for a 630k followed by a 580k. Seasonally, slaughter in July is smaller than in May and June and this year is not expected to be different.”
Boxed beef prices traded lower, with the Choice cutout down $5.45 to $315.75 and the Select cutout down $1.71 to $279.75 on 108 loads.
USDA’s National Agricultural Statistics Service released their cold storage report today, showing the total pounds of beef in freezers were down 8 percent from the previous month and down 1 percent from last year.
Central Stockyards is expected to auction 5,409 head tomorrow through the Fed Cattle Exchange.
Feeder cattle
Feeder cattle traded higher today, with the August contract up $3.25 to $158.35 and the September contract higher $2.97, closing at $160.35. The CME Feeder Cattle Index was higher $3.30 to $144.58.
“The nearby August feeder cattle contract comes up against the resistance at $158 and continues to hold,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments. “The market would love nothing more than for the corn complex to continue to trade lower and for the market to blow past any resistance. But if that’s going to become a reality, the market will need to see support not only from a technical standpoint but also from the countryside.”
Corn contracts were mixed for the day, with the July contract up a fraction of a penny to $6.59 a bushel and the September contract was down 18 cents a bushel, closing at $5.53.
The weekly USDA Crop Progress Report showed good-to-excellent corn dropped three percentage points to 65 percent. Iowa showed the largest decline, with seven percentage points. However, a drop in condition numbers was expected with the weather and next week’s ratings are due to improve due to heavy rains in much of the Corn Belt over the weekend.
Spring wheat conditions continue to slide, with 27 percent rated good to excellent and the Dakotas experiencing the biggest decline. Reports are that some producers in North Dakota have begun to cut their losses and make insurance claims.
Range and topsoil conditions continue their decline, with South Dakota and Washington both having the driest topsoil moisture with 88 percent short to very short. Pasture conditions for the West will be posted with the drought monitor on Thursday.
South Dakota: Sioux Falls Regional Livestock in Worthing sold 6,284 head on Monday. Compared to last week, feeder steers sold steady to $5 higher; heifers were $2-5 higher. Benchmark steers averaging 787 lbs. sold between $144.75-154.75.
New Mexico: Roswell Livestock in Roswell sold 900 head on Monday. Compared to the previous auction, feeder steers and calves were steady to $3 higher; a few 300-400 lbs. sold $7 higher. Feeder heifers and calves sold $2-4 higher. A small group of steers averaging 624 lbs. sold for $166. — Charles Wallace, WLJ editor
