Negotiated cash fed cattle trade ended up $2-$3 higher in the Southern Plains last week at $111-$112/cwt. Live sales were steady to either side of even in Nebraska at mostly $112-$114, but $1-$3 higher in the western Corn Belt at $115. Dressed trade was $2-$5 higher at $182-$185.
Cattle futures closed narrowly mixed on Monday, although Feeder Cattle received some support from sharply lower grain futures prices.
Live Cattle futures closed narrowly mixed, from 20¢ lower to 10¢ higher.
Feeder Cattle futures closed an average of 19¢ higher.
Grain markets dove lower Monday with likely profit taking, as well as more favorable weather.
Corn futures closed 9¢ to 13¢ lower though Jul ’20 and then fractionally lower to 6¢ lower.
Soybean futures closed mostly 9¢ to 11¢ lower.
Wholesale beef values were firm on Choice and weak on Select with light to moderate demand and heavy offerings, according to the Agricultural Marketing Service.
Choice boxed beef cutout value was 47¢ higher Monday afternoon at $213.27/cwt. Select was 39¢ lower at $189.21.
Major U.S. financial indices edged higher Monday, on the cusp of quarterly earnings season.
The Dow Jones Industrial Average closed 27 points higher. The S&P 500 closed fractionally higher. The NASDAQ was up 14 points.
“Uncertainty continues to plague cattle markets with broader trade and political uncertainty augmented by unknown and evolving feed market conditions,” says Derrell Peel, Extension livestock marketing specialist at Oklahoma State University, in his weekly market comments. “Corn will no doubt be higher on a smaller crop this year but exactly how much higher and smaller remains an unknown.”
Undoubtedly, that uncertainty was part of the damper on a seasonal increase in feeder cattle prices, until last week. With the recent uptick, Peel says feeder markets may be set to increase seasonally over the month, on their way to a typical late-summer price peak.
Although the most recent trade data showed some improvement, Peel adds, “Domestic beef markets continue to struggle under relatively poor summer grilling weather thus far and struggling macroeconomic conditions. Ample supplies of meat are weighing more heavily on the market, as well. In particular, large pork supplies and the failure of anticipated Chinese demand for pork to materialize is pushing pork wholesale values lower, adding to beef wholesale price pressure.”