The market traded mostly steady with a week earlier, although cash trade volume was lighter. Boxed beef prices continue to trade sideways, and slaughter levels are keeping steady.
Live cattle futures traded mixed over the week. The August contract gained 67 cents to close at $141.27, and the October contract lost 35 cents to close at $144.75.
“It has been a long, long time (years) since cattle have waited to trade until Thursday and just now, as the noon hour approaches, a few sales are being reported,” ShayLe Stewart, DTN livestock analyst, wrote in her Thursday midday comments.
Through Thursday, about 65,000 head traded on the cash market, and they sold fairly steady with a week earlier. Cassie Fish, market analyst in The Beef, noted that cash cattle continue to sell at the widest range in history. Live steers sold from $138-150, averaging closer to $146. Dressed steers sold from $227-237.
“More cattle will need to trade this week, but unless packers get more aggressive in their price offerings, it could be a week of thin movement,” Stewart said.
Cash trade through Aug. 12 totaled 100,017 head. Live steers averaged $144.66, and dressed steers averaged $229.98.
The national weekly direct beef type price distribution for the week of August 8-15 was the following on a live basis:
• Negotiated purchases: $144.41.
• Formula net purchases: $141.46.
• Forward contract net purchases: $146.10.
• Negotiated grid net purchases: $140.39.
On a dressed basis:
• Negotiated purchases: $230.
• Formula net purchases: $223.46.
• Forward contract net purchases: $221.87.
• Negotiated grid net purchases: $227.04.
Slaughter for the week is estimated at 499,000 head, 3,000 head more than a week earlier and 21,000 head more than a year ago. Slaughter through the first week of August totaled 648,104 head.
“One shift the packer has made is to reduce the slaughter schedule to the 650K head per week level,” Fish said. “Next week is ‘long week buying for a short week,’ and packers will use that to level cash prices out if they can.”
Boxed beef prices continue to trade sideways, with the Choice cutout up $1.29 to close at $264.39 and the Select cutout up only a penny to $237.47.
Pre-report estimates were given for Friday’s Cattle on Feed report. The Aug. 1 number of cattle on feed was estimated at 100.8 percent, with an expected range of 100-101.1 percent of a year ago. Analysts predicted placements could be higher or lower than last year, with a range of 96-101.3 percent of a year ago. The pre-report average estimate was 98.9 percent. Marketing estimates ranged from 96-97.3 percent, averaging 96.6 percent.
Feeder cattle
“The market hasn’t seen any lack of fundamental support from sales this week in the countryside as demand continues to bring buyers to town, but the aggressive rally that Wednesday pushed has Thursday’s market on its heels,” Stewart said.
The CME Feeder Cattle Index lost $1.80 to close at $179.86.
Feeder futures found some slight gains over the week. The August contract gained $1.57 to close at $181.52, and the September contract gained 67 cents to close at $185.27.
Corn futures saw some losses, with the September contract down 10 cents to $6.19 and the December contract down 12 cents to $6.15.
“This year will show an interruption of more normalized movements of cattle to feedlots,” the Ag Center wrote in the Cattle Report. “With the dwindling supplies of replacement cattle, this fall’s placements will drastically and dramatically show the full impact of herd liquidation.”
Kansas: Winter Livestock in Dodge City sold 1,332 head on Wednesday. Compared to a week earlier, feeder steers and heifers 650-950 lbs. sold $2-6 higher. Steer and heifer calves 400-650 lbs. sold $3-10 higher. Benchmark steers averaging 773 lbs. sold between $175-180, averaging $177.67.
Missouri: Joplin Regional Stockyards in Carthage sold 4,348 head on Monday. Compared to the previous sale, feeder steers and heifers traded steady to $5 higher. Benchmark steers averaging 758 lbs. sold for $180.50.
Nebraska: Tri-State Livestock in McCook sold 3,250 head Monday. Compared to the last auction, steers were steady to $11 higher, and heifers were $2-9 lower. Benchmark steers averaging 718 lbs. sold for $192.25.
New Mexico: Roswell Livestock in Roswell sold 1,238 head Monday. Compared to the previous auction, steers and heifers sold steady to $5 higher. A group of steers averaging 626 lbs. sold between $170-176.50 and averaged $173.43.
Oklahoma: Oklahoma National Stockyards sold 6,800 head on Monday. Compared to the week prior, at the mid-session, feeder steers and heifers continued to be lightly tested, as the bulk of sales were calves. A few feeder steers sold $2-6 higher, and a few feeder heifers sold $5 higher. Benchmark steers averaging 768 lbs. sold between $176.50-181, averaging $179.64.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 3,000 head Monday. Compared to the last auction, feeder steers and heifers sold with steady to higher undertones, except for 1,100-1,150 lbs., which traded steady to $4 lower. Benchmark steers averaging 788 lbs. sold between $180.75-191.25, averaging $189.22. — Anna Miller,WLJ managing editor
