Cattle Current Daily—Aug. 23, 2021

Cattle Current Daily—Aug. 23, 2021

Negotiated cash fed cattle trade was mostly inactive with light demand in all feeding regions through Friday afternoon, according to the Agricultural Marketing Service.

Live prices last week were $1 higher in the Southern Plains at $122/cwt., $1-$2 higher in Nebraska at $125-$127 and $1-$2 higher in the western Corn Belt at $127. Dressed trade was mostly $2 higher in Nebraska at $200; $2 higher to $4 lower in the western Corn Belt at $200.

The down day in grain futures Friday sparked Feeder Cattle futures, as did likely positioning ahead of what turned out to be a positive Cattle on Feed report (see below).

Feeder Cattle futures closed an average of $1.47 higher (75¢ to $2.60 higher). Week to week on Friday, they were an average of $1.17 higher.

Live Cattle futures closed an average of 53¢ higher, except for unchanged and 5¢ lower toward the back. Strength in wholesale beef values and slightly higher cash fed cattle prices provided support.

Choice boxed beef cutout value was $3.43 higher Friday afternoon at $345.06/cwt. Select was $2.12 higher at $318.53.

Corn futures closed down an average of 13¢ lower through the front six contracts, then mostly 5¢ to 9¢ lower.

Soybean futures closed an average of 27¢ lower through the front six contracts, then mostly 9¢ to 18¢ lower.

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Major U.S. financial indices closed higher Friday after a week of volatility. Investors have seemed concerned the Federal Reserve will initiate tapering plans just as the rapid spread of the delta variant may slow the economy. This week’s Jackson Hole symposium – now virtual – may offer more clues to what the Fed’s plans are for tapering.

The Dow Jones Industrial Average closed 226 points higher. The S&P 500 closed 36 points higher. The NASDAQ was up 173 points.

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Heading into Monday, it seemed likely traders would view Friday’s monthly Cattle on Feed report (feedlots with 1,000 head or more capacity) as neutral to somewhat friendly.

Placements in July of 1.74 million head were 154,000 head fewer (-8.1%) than the previous year. The average of analyst expectations ahead of the report projected a 7.0% decline.

As for placement weights, 36.2% went on feed weighing 600 lbs. or less, 48.0% weighing 700-899 lbs. and 15.8% weighing 900 lbs. or more.

Marketings in July of 1.9 million head were 90,000 fewer (-4.5%) year over year, compared to analysts expecting a decline, on average, of 3.6%.

Cattle on feed Aug. 1 of 11.07 million head were 210,000 head fewer (-1.9%) than the same time last year. That was about even with pre-report expectations.

Through midday Monday, Feeder Cattle and Live Cattle futures are strongly higher. Live Cattle were more than $2 higher in the front months, while Feeder Cattle were an average of $2.15 higher, except for spot Aug.

2021-08-23T13:36:02-06:00

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