Futures closed higher on the week, while slaughter volumes fell to the lowest level for this time of year in a decade. The markets also absorbed a flurry of new information over the week, including the latest inventory reports and the imposition of tariffs on Brazilian beef.
Live cattle futures were a couple dollars higher over the week. The August contract gained about $2 to close at $227.77, and the October contract gained a dollar to close at $223.15
Cash trade through Thursday totaled about 11,000 head. Live steers sold from $232-245, and dressed steers sold for $383.
Cash trade for the week ending July 27 totaled 62,915 head. Live steers averaged $239.63, and dressed steers averaged $379.53.
Slaughter through Thursday totaled about 444,000 head, compared to 448,000 head a week earlier. Total slaughter for the week prior is projected at 549,000 head. Actual slaughter for the week ending July 19 was 567,470 head. The average steer dressed weight was 935 lbs., 1 lb. above the prior week.
“Packers have reduced their cattle needs by reducing production throughput about as much as they reasonably can and this week’s slaughter estimated between 540k and 548k head, the smallest in 10 years for this week,” wrote Cassie Fish, market analyst, in The Beef on Thursday.
Boxed beef prices showed another steady decline, with the Choice cutout down about $7 to $361.32 and the Select cutout down about $6 to $341.37.
On July 30, President Donald Trump signed an executive order to impose 50% tariffs on Brazil beginning Aug. 6.
“Cattlemen don’t mind the fact that Brazilian beef and cattle could face a greater tariff, as truthfully, they want their own product to be marketed as opposed to the imported products,” explained ShayLe Stewart, DTN livestock analyst, in her midday comments on Thursday. “However, where the tricky part of this matter comes into play is in beef prices, and how consumers are going to react.”
USDA released its latest Cattle on Feed report on July 25. Cattle and calves on feed as of July 1 totaled 11.1 million head, 2% below last year. Placements were down 8%, and marketings were down 4%. USDA also released its biannual Cattle inventory report the same day. All cattle and calves on July 1 totaled 94.2 million head, 1% below 2023’s numbers (USDA did not issue a report in July 2024).
Feeder cattle
Feeder cattle futures were a few dollars higher over the week. The August contract gained just under $3 to close at $331.37, and the September contract gained just over $2 to close at $331.55.
“Because of the announcement that a 50% tariff could go into effect on beef and cattle imports from Brazil—the feeder cattle complex is trading lower thanks to the morning’s announcement,” Stewart noted. “This decision is solely being made because of technical uncertainty, not because it reflects what’s going on in the countryside.”
The CME Feeder Cattle Index gained close to $6 to close at $333.03.
Corn futures were lower over the week, with the September contract down 7 cents to $3.94 and the December contract down 7 cents to $4.13.
Missouri: Joplin Regional Stockyards in Carthage sold 4,710 head on Monday. Compared to the previous sale, feeder steers under 500 lbs. sold $25-30 higher. Heavier weights sold steady to $8 higher. Feeder heifers sold $20-25 higher with heavier weights selling steady to $8 higher. Benchmark steers averaging 726 lbs. sold from $345-360, averaging $351.48.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 2,972 head on Monday. Compared to a week earlier, feeder steers and steer calves sold $8-13 higher with instances of $20 higher. Feeder heifers and heifer calves sold $10-20 higher. Demand was very good. Quality was mostly plain, but weigh-up conditions were in the buyer’s favor. Benchmark steers averaging 767 lbs. sold from $339-356, averaging $347.10. — Anna Miller Fortozo, WLJ managing editor
