The weekly weighted average live steer price (five-area direct) last week was $117.06/cwt., which was $4.75 higher than the previous week. The weekly weighted steer price in the beef was $3.70 higher at $183.35.
Higher outside markets, last week’s friendly Cattle on Feed report and recent cash strength helped lift Cattle futures Tuesday.
Live Cattle futures closed an average of $2.06 higher.
Feeder Cattle futures closed an average of $3.86 higher.
Choice boxed beef cutout value was $11.25 lower Tuesday afternoon at $385.49/cwt. Select was $14.16 lower at $360.02.
Corn futures closed mostly 1¢ higher.
Soybean futures closed 10¢ to 13¢ higher through Jan ’21 and then mostly 5¢ to 8¢ higher. Support included announcement of new export sales to China.
Major U.S. financial indices closed higher Tuesday, buoyed by positive economic news as the domestic economy continues to reopen.
The closely watched Consumer Confidence Index® held steady in May, following the steep decline in April.
“Following two months of rapid decline, the free-fall in Confidence stopped in May,” says Lynn Franco, Senior Director of Economic Indicators at The Conference Board. “The severe and widespread impact of COVID-19 has been mostly reflected in the Present Situation Index, which has plummeted nearly 100 points since the onset of the pandemic. Short-term expectations moderately increased as the gradual reopening of the economy helped improve consumers’ spirits. However, consumers remain concerned about their financial prospects. In addition, inflation expectations continue to climb, which could lead to a sense of diminished purchasing power and curtail spending. While the decline in confidence appears to have stopped for the moment, the uneven path to recovery and potential second wave are likely to keep a cloud of uncertainty hanging over consumers’ heads.”
Also, sales of new single-family houses in April 2020 beat widespread expectations at a seasonally adjusted annual rate of 623,000, according to estimates released by the U.S. Census Bureau and the Department of Housing and Urban Development. That was 0.6% more than the revised March rate, but 6.2% less than a year earlier.
The Dow Jones Industrial Average closed 529 points higher. The S&P 500 closed 36 points higher. The NASDAQ closed 15 points higher.
Feedlot placements for March and April were down a combined 867,000 head from the previous year, suggesting a significant decline in fed marketing, mostly in September and into October, says Derrell Peel, Extension livestock marketing specialist at Oklahoma State University, in his latest market comments.
“The delayed placements from March and April will show up starting in May, and will be heavier, but the delay will help feedlots have a chance to get current,” Peel says. “The feedlot industry will spend much of the summer working through the backlog of fed cattle but the hole from March and April feedlot placements should provide a marketing window to catch up by this fall if not before.”
Although average year-over-year fed cattle marketings declined an average of 6.4% for March and April combined, Peel notes, “The slowdown in April marketings and resulting backlog of fed cattle in feedlots would have been more severe without the strong March marketings that pulled some cattle ahead.”