Consumer demand, apparently positive packers margins and continued trade incentive for cattle feeders was enough to pull cattle futures and cash prices higher.
Feeder steers and heifers sold mostly steady to $5/cwt. higher last week, according to the Agricultural Marketing Service (AMS). Steer and heifer calves traded steady to $3 higher on light offerings.
“Receipts gained ground mid-week as CME cattle futures closed in positive territory on Tuesday and Wednesday,” AMS analysts say. “This, along with some cooler temperatures and moisture in much needed areas, acquired the confidence of producers. Farmer feeders continue to push prices to higher levels as they are banking on a good corn crop.”
Feeder Cattle futures closed an average of $3.33 higher week to week on Friday ($2.40 to $4.62 higher).
Negotiated cash fed cattle trade for the week was mostly $1 more than the previous week at mostly $118/cwt. Dressed trade was steady to unevenly steady at $187-$188.
Live Cattle futures closed an average of $1.72 higher week to week on Friday ($1.42 to $2.55 higher).
“Finished cattle prices in the cash market appear to have support at the $117 price level, given the last three weeks of live cattle trade,” says Andrew P. Griffith, agricultural economist at the University of Tennessee, in his weekly market comments. “It is still difficult to say for certain that the summer low is in for finished cattle, but the last three weeks provide some credence towards the thought. The price level continues to be profitable for cattle feeders given that mortality and morbidity rates are still in check and feed efficiency is on par with previous years. If the summer lows are in, cattle feeders will look to slowly ratchet up prices in the coming weeks. However, if the market falters, cattle feeders will be scrambling for a method to slow the decline and reverse the trend. The expectation at this time is for little downside risk in the cash live cattle market.”
Wholesale beef values continued trying to establish a seasonal bottom. Choice boxed beef cutout value was $2.61 lower week to week at $203.61/cwt. Friday afternoon. Select was 49¢ higher at $197.31. The Choice-Select spread was the narrowest since March at $6.30.
“Since the middle of June the Choice cutout price has declined nearly 19% while the Select cutout price has declined about 7%,” Griffith says. “The rib and loin cuts have been the biggest disappointment for Choice beef as ribeye prices have declined more than 30% while many of the loin primal cut prices have declined 27-30% the past six weeks…Choice and Select beef cutout prices are 2.7% and 3.7% higher than year-ago prices, respectively.”
Friday to Friday Change*
Weekly Auction Receipts
| Receipts | Auction | Change | Direct | Change | Video/Internet | Change | Total | Change |
| Aug. 4 | 150,900 | +34,100 | 37,300 | -3,300 | 189,300 | +95,000 | 377,500 | +125,800 |
CME Feeder Index
| CME Feeder Index | Aug. 3 | Change |
| $151.99 | + $2.63 |
*Thursday-to Thursday for CME Feeder Index
Cash Stocker and Feeder
North Central
| Steers-Cash | Aug. 4 | Change |
| 600-700 lbs. | $173.41 | + $4.20 |
| 700-800 lbs. | $166.84 | + $6.13 |
| 800-900 lbs. | $156.79 | – $0.89 |
South Central
| Steers-Cash | Aug. 4 | Change |
| 500-600 lbs. | $161.48 | – $1.71 |
| 600-700 lbs. | $156.73 | – $0.31 |
| 700-800 lbs. | $151.46 | + $1.45 |
| 800-900 lbs. | $146.98 | + $3.19 |
Southeast
| Steers-Cash | Aug. 4 | Change |
| 400-500 lbs. | $159.07 | + $1.68 |
| 500-600 lbs. | $150.49 | + $0.88 |
| 600-700 lbs. | $142.58 | – $0.98 |
(AMS National Weekly Feeder & Stocker Cattle Summary)
Wholesale Beef Value
| Boxed Beef (p.m.) | Aug. 4 ($/cwt) | Change |
| Choice | $203.61 | – $2.61 |
| Select | $197.31 | + $0.49 |
| Ch-Se Spread | $6.30 | – $3.10 |
Futures
| Feeder Cattle | Aug. 4 | Change |
| Aug | $149.950 | + $3.900 |
| Sep | $150.850 | + $3.750 |
| Oct | $149.925 | + $3.075 |
| Nov | $148.775 | + $2.975 |
| Jan ’18 | $145.725 | + $2.400 |
| Mar | $143.550 | + $2.450 |
| Apr | $143.250 | + $3.475 |
| Aug | $142.600 | + $4.625 |
| Live Cattle | Aug. 4 | Change |
| Aug | $115.450 | + $2.550 |
| Oct | $114.100 | + $1.675 |
| Dec | $115.175 | + $1.775 |
| Feb ’18 | $116.800 | + $1.525 |
| Apr | $117.075 | + $1.725 |
| Jun | $111.150 | + $1.825 |
| Aug | $109.275 | + $1.525 |
| Oct | $109.475 | + $1.425 |
| Dec | $109.900 | + $1.425 |
| Corn futures | Aug. 4 | Change |
| Sep | $3.664 | – $0.078 |
| Dec | $3.810 | – $0.070 |
| Mar ’18 | $3.924 | – $0.072 |
| May | $3.980 | – $0.070 |
| Jul | $4.034 | – $0.066 |
| Sep | $4.070 | – $0.054 |
| Oil CME-WTI | Aug. 4 | Change |
| Sep | $49.58 | – $0.13 |
| Oct | $49.73 | – $0.08 |
| Nov | $49.88 | – $0.05 |
| Dec | $50.02 | + $0.02 |
| Jan ’18 | $50.15 | + $0.09 |
| Feb | $50.23 | + $0.15 |
Equities
| Equity Indexes | Aug. 4 | Change |
| Dow Industrial Average | 22092.81 | + 252.50 |
| NASDAQ | 6351.56 | – 23.12 |
| S&P 500 | 2476.83 | + 4.73 |
| Dollar (DXY) | 93.49 | + 0.24 |