Cattle Current Daily—July 26, 2022

Cattle Current Daily—July 26, 2022

Feeder Cattle futures closed an average of $1.76 lower Monday, pressured by higher Corn futures, bearish feedlot placements in Friday’s Cattle on Feed report and likely profit taking.

Corn futures reversed direction and closed 15¢ to 19¢ higher through new-crop contracts after Russia attacked one of Ukraine’s deep seaports before the ink dried on the agreement signed Friday which was supposed to enable resumption of Ukraine grain exports in the Black Sea region. Soybean futures closed mostly 28¢ to 30¢ higher.

Live Cattle futures closed narrowly mixed, from an average of 22¢ lower in three contracts to an average of 25¢ higher, supported by stronger wholesale beef prices.

Choice Boxed beef cutout value was 99¢ higher Monday afternoon at $268.11/cwt. Select was $2.50 higher at $245.00/cwt.

Negotiated cash fed cattle trade ranged from mostly inactive on very light demand to a standstill through Monday afternoon, according to the Agricultural Marketing Service.

Last week, live prices were $136 in the Southern Plains, $139.00-$143.50 in Nebraska and $142-$144 in the western Corn Belt. Dressed prices were $227 in Nebraska and $227-$230 in the western Corn Belt.

******************************

Major U.S. financial indices closed narrowly mixed Monday, as investors awaited earnings reports from some corporate giants later this week, as well as key economic data.

The Dow Jones Industrial Average closed 90 points higher. The S&P 500 closed 5 points higher. The NASDAQ was down 51 points.

CME WTI Crude Oil futures closed $1.94 to $2.00 higher through the front six contracts.

******************************

Cattle producers are de-stocking at a rapid pace in the Southern Plains as pasture conditions deteriorate, according to Derrell Peel, Extension livestock marketing specialist at Oklahoma State University, in his weekly market comments.

For instance, in Oklahoma, where pasture and range rated poor or very poor jumped from 18% in early July to 34% by mid-month, Peel explains the volume of feeder cattle trading at auction increased 24% year over year the last two weeks.

“Prices for Oklahoma steers dropped an average of 3.5% this past week with prices for 400-500 lb. steers down 7.9%,” Peel says. “Feeder heifer prices were down an average of 2.5% with prices for 400-500 lb. heifers down 6.3%. The auction volume of cull cows and bulls jumped nearly 124% over last year in the past two weeks. Prices for average dressing Boning cows decreased by nearly 22% from $85.22/cwt. in early July to $66.62 this past week. Anecdotal reports indicate that auctions in the Southern Plains and regional cow slaughter plants are being overwhelmed with volumes of cattle sales.”

Peel notes last week’s semiannual USDA Cattle report confirmed accelerated beef cow herd liquidation due to the cumulative effects of drought the past two years.

As mentioned in Cattle Current, there were 30.35 million beef cows in the national inventory July 1, which was 750,000 fewer (-2.4%) than the same time last year.

The 4.15 million beef heifers retained as replacements were 150,000 fewer (-3.5%) than a year earlier.

The calculated number of calves outside feedlots July 1 of 35.7 million head was 1 million head fewer (-2.7%) than the same time last year.

Total cattle and calves of 98.8 million head were 2 million fewer (-2.0%) year over year.

You can find more market insight from Peel here.

2022-07-25T20:35:05-05:00

This Is A Custom Widget

This Sliding Bar can be switched on or off in theme options, and can take any widget you throw at it or even fill it with your custom HTML Code. Its perfect for grabbing the attention of your viewers. Choose between 1, 2, 3 or 4 columns, set the background color, widget divider color, activate transparency, a top border or fully disable it on desktop and mobile.

This Is A Custom Widget

This Sliding Bar can be switched on or off in theme options, and can take any widget you throw at it or even fill it with your custom HTML Code. Its perfect for grabbing the attention of your viewers. Choose between 1, 2, 3 or 4 columns, set the background color, widget divider color, activate transparency, a top border or fully disable it on desktop and mobile.

This Is A Custom Widget

This Sliding Bar can be switched on or off in theme options, and can take any widget you throw at it or even fill it with your custom HTML Code. Its perfect for grabbing the attention of your viewers. Choose between 1, 2, 3 or 4 columns, set the background color, widget divider color, activate transparency, a top border or fully disable it on desktop and mobile.

This Is A Custom Widget

This Sliding Bar can be switched on or off in theme options, and can take any widget you throw at it or even fill it with your custom HTML Code. Its perfect for grabbing the attention of your viewers. Choose between 1, 2, 3 or 4 columns, set the background color, widget divider color, activate transparency, a top border or fully disable it on desktop and mobile.