Surprisingly strong cash fed cattle prices and support from the futures market helped steers and heifers sell $2-$7/cwt. higher in the cash market last week, according to the Agricultural Marketing Service (AMS). There were instances of as much as $9-$11 higher.
Feeder Cattle futures closed an average of $8.45 higher week to week.
Cash fed cattle prices surged mostly $4-$7 higher on a live basis at mostly $134.00-$137.50/cwt. Dressed trade was up to $10 higher week to week at $215-$220.
Week to week, Live Cattle futures closed an average of $6.69 higher across the front half of the Board and then an average of $3.97 higher.
“It is difficult to determine at this time if this is a brief shock to the market due to being short-bought at the packer level or if retail demand is simply that strong,” says Andrew P. Griffith, agricultural economist at the University of Tennessee, put it this way in his weekly market comments.
One certainty is that demand for Choice cattle continues to run ahead of supply, as evidenced by the historically high Choice-Select spread.
“Packer profitability has been better than expected and helped improve cash prices after sliding the past couple of weeks,” AMS analysts say. “Fewer cattle have been grading Choice and packers are willing to chase the market to get the higher quality-grading animals.”
Wholesale beef values on Friday were about even with the previous week leading up to Memorial Day: $245.24 for Choice boxed beef cutout; $218.06 for Select.
Reflecting on current market strength and producers with calves to market, Griffith says, “There is no guarantee prices will remain this strong, but there is also no information suggesting prices should decline.”
Friday to Friday Change*
Weekly Auction Receipts
| Receipts | Auction | Change | Direct | Change | Video/Internet | Change | Total | Change |
| June 2 | 120,100 | -43,400 | 43,900 | +5,400 | 300 | -9,100 | 164,300 | -47,100 |
CME Feeder Index
| CME Feeder Index | June 1 | Change |
| $149.80 | + $5.91 |
*Thursday-to Thursday for CME Feeder Index
Cash Stocker and Feeder
North Central
| Steers-Cash | June 2 | Change |
| 600-700 lbs. | $174.81 | + 5.05 |
| 700-800 lbs. | $163.15 | + 4.58 |
| 800-900 lbs. | $154.68 | + 7.18 |
South Central
| Steers-Cash | June 2 | Change |
| 500-600 lbs. | $174.25 | + 2.76 |
| 600-700 lbs. | $160.95 | + 2.28 |
| 700-800 lbs. | $152.97 | + 4.92 |
Southeast
| Steers-Cash | June 2 | Change |
| 400-500 lbs. | $166.07 | + 0.64 |
| 500-600 lbs. | $159.48 | + 2.33 |
| 600-700 lbs. | $149.64 | + 0.34 |
(AMS National Weekly Feeder & Stocker Cattle Summary)
Wholesale Beef Value
| Boxed Beef (p.m.) | June 2 ($/cwt) | Change |
| Choice | $245.24 | – $0.36 |
| Select | $218.06 | – $0.39 |
| Ch-Se Spread | $27.18 | + $0.03 |
Futures
| Feeder Cattle | June 2 | Change |
| Aug | $158.725 | + $11.775 |
| Sep | $157.825 | + $11.075 |
| Oct | $155.700 | + $9.925 |
| Nov | $152.650 | + $8.375 |
| Jan ’18 | $145.850 | + $7.400 |
| Mar | $142.175 | + $6.850 |
| Apr | $141.050 | + $6.175 |
| Aug | $140.075 | + $6.050 |
| Live Cattle | June 2 | Change |
| Jun | $130.825 | + $8.125 |
| Aug | $126.050 | + $7.100 |
| Oct | $121.100 | + $6.000 |
| Dec | $121.475 | + $5.525 |
| Feb ’18 | $121.325 | + $4.725 |
| Apr | $118.950 | + $3.725 |
| Jun | $111.750 | + $3.825 |
| Aug | $108.975 | + $3.600 |
| Corn futures | June 2 | Change |
| Jul | $3.726 | – $0.016 |
| Sep | $3.806 | – $0.010 |
| Dec | $3.910 | – $0.014 |
| Mar ’18 | $4.006 | + $0.004 |
| May | $4.070 | – $0.014 |
| Jul | $4.122 | – $0.010 |
| Oil CME-WTI | June 2 | Change |
| Jul | $47.66 | – $2.14 |
| Aug | $47.87 | – $2.18 |
| Sep | $48.05 | – $2.18 |
| Oct | $48.20 | – $2.16 |
| Nov | $48.37 | – $2.12 |
| Dec | $48.51 | – $2.08 |
Equities
| Equity Indexes | June 2 | Change |
| Dow Industrial Average | 21206.29 | + 126.01 |
| NASDAQ | 6305.80 | + 104.61 |
| S&P 500 | 2439.07 | + 23.25 |
| Dollar (DXY) | 96.66 | – 0.74 |