Cattle Current Podcast—July 5-6, 2021

Negotiated cash fed cattle trade was limited on light demand in Nebraska and the Western Corn Belt through Friday afternoon, according to the Agricultural Marketing Service. It was at a standstill in the Southern Plains.

For the week, live prices were steady to $2 lower in the Southern Plains at $120-$122/cwt. and unevenly steady in the North at $124-$126. Dressed prices were steady to $1 higher at $197-$198.

Stagnant cash trade and lower wholesale beef prices pressured Live Cattle futures Friday.

Live Cattle futures closed mostly lower, from 2¢ lower toward the back to $1.57 lower in spot Aug, except for unchanged to 2¢ higher in three contracts.

Softer Corn futures helped Feeder Cattle futures close an average of 70¢ higher, except for 50¢ lower at the back.

Choice boxed beef cutout value was $2.21 lower Friday afternoon at $285.44/cwt. Select was $2.52 lower at $264.41.

Estimated total cattle slaughter last week was 623,000 head, according to USDA, which was 38,000 head fewer than the previous week. Year-to-date estimated total cattle slaughter of 16.71 million head is 865,000 head more (+5.5%) than last year. Year-to-date estimated beef production of 13.85 billion lbs. is 784.7 million lbs. more (+6.0%).

Thin trade volume and positive weather pressured Corn and Soybean futures.

Corn futures closed 22¢ lower in spot Jly and then 8¢ and 9¢ lower in new crop contracts. Soybean futures closed mostly 2¢ to 5¢ higher.

For the week, though, Corn futures closed an average of 59¢ higher through the front six contracts, while Soybean futures closed an average of $1.27 higher through the front six contracts.

That had everything to do with USDA’s Acreage report issued on Wednesday. USDA estimated corn planted area for all purposes to be 1.87 million acres more than last year at 92.7 million acres, and soybean planted area 5% more at 87.6 million acres. That was significantly less than analysts expected for both crops.