Thursday markets
The cattle complex traded mixed today with paltry cash cattle trade thus far this week.
Live cattle futures were mixed, with the June contract up 32 cents to $122.82 and the August contract down 25 cents, closing at $122.62.
“Live cattle futures are caught between a rock and hard spot as the market likes the idea of trading higher but doesn’t feel like the nearby contracts can do so considering the undeveloped cash cattle market,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments.
Cash trade was moderate, with 9,460 sold between $122-126, averaging $125.59. Dressed steers sold between $197-202. A few live purchases traded in Nebraska from $125-126 and was limited on light demand in the western Corn Belt and the Southern Plains. On the formula side, 23,500 head averaging 856 lbs. sold for $198.82.
Slaughter for the day is expected to be 119,000 head, just shy of last week’s number. Weekly slaughter is on pace to reach last week’s slaughter number of 477,000, at 475,000 head.
“Slaughter this week will fall into the 660-665,000 head consistent with the past two weeks,” the folks at the Cattle Report wrote. “Next week and the following will see smaller slaughter volumes. The Fourth of July falls on a weekend, confusing the slaughter schedules.”
The USDA National Agricultural Statistics Service released the Livestock Slaughter report showing beef production 19 percent higher than the previous year at 2.21 billion pounds. Cattle slaughter totaled 2.70 million head, up 18 percent from May 2020. The average live weight was down 7 pounds from the previous year, at 1,360 lbs.
Boxed beef traded mixed on 132 loads with the Choice cutout lower $4.63 to $307.42 and the Select cutout up 73 cents to $276.14.
USDA reported 16,851 metric tons (mt) of beef sold for export through the week that ended June 17. This was up 31 percent from the week prior but still 17 percent below the same week last year. The three largest buyers were South Korea (6,700 mt), Japan (4,000 mt) and China (1,600 mt). Beef exports were 18,153 mt, pushing the year-to-date total to 428,000 mt—a record through the first 24 weeks.
According to Cassie Fish, market analyst at The Beef, tomorrow’s Cattle on Feed Report is not expected to contain any surprises. May marketings and placements will be “historically normal,” according to Fish, with marketings at 1.885 million head, and placements an estimated 2.04 million head. Total cattle on feed is estimated to be up 0.6-1 percent from a year ago.
Feeder cattle
Feeder cattle closed higher as old crop corn continues its downward trend. The August contract was up $1.45 to $157.15 and the September contract was higher $1.12, closing at $159.20. The CME Cattle Feeder Index was up $1.05 to $146.49.
Corn contracts were lower, with the July contract down 11 cents to $6.64 a bushel and the September contracts down just over a penny a bushel to $5.49. New crop corn was up a fraction of a cent, with the December contract closing at $5.36 a bushel.
South Dakota: Hub City Livestock in Aberdeen sold 4,436 head on Wednesday. Compared to the previous auction, steers 800-850 lbs. sold $2-4 higher and 851-900 lbs. were steady to $1 higher. Heifers 800-850 lbs. were steady to $1 higher and 851-900 lbs. sold $2-3 higher. Benchmark steers averaging 732 lbs. sold between $147.75-153.
Nebraska: Bassett Livestock in Bassett sold 7,060 head on Wednesday. This is the first reported sale in recent weeks, so a market trend was not possible. Steers between 550-595 lbs. sold between $175.50-187.50; 650-693 lbs. sold from $164-174.25; 704-744 lbs. sold between $161.50-166.75, and 804-834 lbs. sold between $151-159.75.
New Mexico: Clovis Livestock in Clovis sold 2,150 head on Wednesday. Compared to the previous auction, steer calves under 600 lbs. were mostly $2-4 higher and feeders over 600 lbs. sold $2 higher. Heifer calves under 600 lbs. were steady to $3 higher and feeders over 600 lbs. sold $2 higher. A small group of steers averaging 664 lbs. sold between $156-157.
Oklahoma: OKC West in El Reno sold 9,967 head on Wednesday. Compared to the previous auction, feeder steers sold $2-4 higher. Feeder heifers were steady to $1 higher. Steer and heifer calves were steady to $2 higher. Benchmark steers averaging 782 lbs. sold between $140-151. — Charles Wallace, WLJ editor
