Most auctions were closes for the 4th of July holiday last week, but trade was active and demand was good at the few late-week sales on heavy offerings, according to the Agricultural Marketing Service (AMS).
“Despite the lower trends in boxed beef, futures, and feedlot trade throughout the last several weeks, many feeders continue to trend at higher prices,” AMS analysts say. “There is good demand from farmer feeder participation, with many thinking they can make a profit or break even when factoring in costs at these price levels.”
Feeder Cattle futures closed an average of $3.03 lower week to week on Friday ($2.05 to $3.85 lower).
Live Cattle futures closed an average of 93¢ lower week to week on Friday (7¢ to $1.52 lower).
Wholesale beef values and cash fed cattle prices continued to decline seasonally.
Cash fed cattle prices were mainly $1 lower in the Southern Plains and Northern Plains at $118/cwt. on a live basis, with a few in Nebraska $1 higher than the previous week at $119. They were $1-$2 lower in Iowa-Minnesota at $117-$118. Dressed trade for the week was $2 lower at $188.
Choice boxed beef cutout value was $5.89 lower week to week on Friday at $218.84/cwt. Select was $5.91 lower at $202.51.
“The price decline has yet to turn margins negative because packers continue to purchase cattle for lower prices each week, and wholesale beef prices are strong,” says Andrew P. Griffith, agricultural economist at the University of Tennessee, in his weekly market comments. “However, the softening prices do not mean there is no concern about the future. Wholesale beef prices are likely to continue slipping the next few weeks, as Labor Day is the last remaining summer grilling holiday. Purchases for Labor Day will not support beef prices for at least a month, as the holiday weekend is still eight weeks away. Packers will work diligently to maintain price levels the next several weeks, but they will continue to harvest a large number of animals which will keep beef production elevated and put pressure on prices.”
Friday to Friday Change*
Weekly Auction Receipts
| Receipts | Auction | Change | Direct | Change | Video/Internet | Change | Total | Change |
| July 7 | 15,800 | – 118,400 | 38,200 | + 2,000 | 55,500 | – 31,600 | 109,500 | – 148,000 |
CME Feeder Index
| CME Feeder Index | July 6 | Change |
| $148.19 | – $1.04 |
*Thursday-to Thursday for CME Feeder Index
Cash Stocker and Feeder
North Central
| Steers-Cash | July 7 | Change |
| 600-700 lbs. | $172.31 | – $10.97 |
| 700-800 lbs. | $168.13 | + $0.55 |
| 800-900 lbs. | $155.33 | + $3.46 |
South Central
| Steers-Cash | July 7 | Change |
| 500-600 lbs. | $178.80 | + $16.25 |
| 600-700 lbs. | $171.32 | + $15.27 |
| 700-800 lbs. | $159.72 | + $10.10 |
Southeast
| Steers-Cash | July 7 | Change |
| 400-500 lbs. | $155.74 | – $1.82 |
| 500-600 lbs. | $148.06 | – $4.46 |
| 600-700 lbs. | $139.26 | – $4.53 |
(AMS National Weekly Feeder & Stocker Cattle Summary)
Wholesale Beef Value
| Boxed Beef (p.m.) | July 7 ($/cwt) | Change |
| Choice | $218.84 | – $5.89 |
| Select | $202.51 | – $5.91 |
| Ch-Se Spread | $16.33 | + $0.02 |
Futures
| Feeder Cattle | July 7 | Change |
| Aug | $145.025 | – $2.900 |
| Sep | $145.025 | – $3.000 |
| Oct | $143.925 | – $3.000 |
| Nov | $142.925 | – $2.850 |
| Jan ’18 | $139.225 | – $3.350 |
| Mar | $136.575 | – $3.850 |
| Apr | $136.075 | – $3.250 |
| Aug | $136.050 | – $2.050 |
| Live Cattle | June 30 | Change |
| Aug | $114.775 | – $1.525 |
| Oct | $113.825 | – $1.375 |
| Dec | $114.600 | – $1.200 |
| Feb ’18 | $115.300 | – $0.975 |
| Apr | $114.475 | – $0.325 |
| Jun | $108.200 | – $0.075 |
| Aug | $106.575 | – $0.425 |
| Oct | $107.275 | – $0.775 |
| Dec | $107.775 | – $0.775 |
| Corn futures | July 7 | Change |
| Jul | $3.822 | + $0.118 |
| Sep | $3.924 | + $0.114 |
| Dec | $4.046 | + $0.126 |
| Mar ’18 | $4.136 | + $0.124 |
| May | $4.182 | + $0.112 |
| Jul | $4.226 | + $0.102 |
| Oil CME-WTI | July 7 | Change |
| Aug | $44.23 | – $1.81 |
| Sep | $44.39 | – $1.90 |
| Oct | $44.56 | – $1.95 |
| Nov | $44.80 | – $1.97 |
| Dec | $45.07 | – $1.98 |
| Jan ’18 | $45.33 | – $1.98 |
Equities
| Equity Indexes | July 7 | Change |
| Dow Industrial Average | 21414.34 | + 64.71 |
| NASDAQ | 6153.08 | + 12.66 |
| S&P 500 | 2425.18 | + 1.77 |
| Dollar (DXY) | 95.99 | + 0.36 |