Cattle Current Daily—July 26, 2019

Cattle Current Daily—July 26, 2019

Negotiated cash fed cattle trade continued to be undeveloped through Thursday afternoon.

Cattle futures basically hovered in place, awaiting some cash direction.

Except for unchanged in Oct and 5¢ higher in Dec, Live Cattle futures closed an average of 13¢ lower.

Feeder Cattle futures closed an average of 21¢ higher in five contracts and an average of 11¢ lower in the other three.

Corn futures closed 1¢ to 5¢ lower through Sep ’20 and then fractionally lower.

Soybean futures closed mostly 4¢ to 8¢ lower. 

Wholesale beef values were lower on Choice and steady on Select with light to moderate demand and offerings, according to the Agricultural Marketing Service.

Choice boxed beef cutout value was $1.03 lower Thursday afternoon at $212.57/cwt. Select was 24¢ lower at $189.18.

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Major U.S. financial indices closed lower Thursday. An assortment of underwhelming quarterly earnings reports was part of it. There was also chatter that investors feared the Fed might be less aggressive in cutting interest rates at next week’s FOMC meeting, based on recent positive economic news.

For instance, the U.S. Census Bureau announced that durable goods orders in June were up 2% compared to the previous month, which was more than traders expected. Also on Thursday, the European Central Bank left its lending rate unchanged, hinting at a more positive economic outlook for the region.

The Dow Jones Industrial Average closed 128 points lower. The S&P 500 closed 15 points lower. The NASDAQ was down 82 points.

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Feedlot marketing remains current, based on the most recent USDA slaughter and carcass grading data.

The average dressed steer weight for the week ending July 13 was 865 lbs., which was 4 lbs. more than the previous week but 2 lbs. lighter year over year, according to USDA’s Actual Slaughter Under Federal Inspection report. The average dressed heifer weight of 791 lbs. was 1 lb. lighter than the previous week and 8 lbs. less  year over year. Fed cattle slaughter of 531,743 head for the week was 11,828 head more than the same week a year earlier. Total cattle slaughter of 658,432 was 8,134 head more.

As for grading, 77.72% of carcasses graded Choice and Prime the week ending July 12, according to USDA’s National Steer and Heifer Estimated Grading report. That was 0.91% less than previous week. Carcasses grading in the upper two-thirds of Choice were 0.22% less than the previous week at 31.51%.

For broader monthly perspective, total commercial red meat and pork production was record large for the month of June at 4.37 billion lbs., which was 1% more than the previous year, according to USDA’s monthly Livestock Slaughter report. That was with one less business day in the month this year.

However, beef production in June of 2.2 billion lbs. was 3% less than the previous year, with the month’s 2.80 million head of total cattle slaughter 2% less year over year.

Pork production of 2.13 billion lbs. in June was 6% more than the previous year, with hog slaughter of 9.99 million head 4% more than last year.

For January through June, commercial red meat production of 26.8 billion lbs. was 2% more than the same period a year earlier. Accumulated beef production was up slightly from last year, veal was down 1% and pork was up 4%. Lamb and mutton production was down 1%.

2019-07-25T18:29:11-06:00

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