Cash fed cattle trade was slow in developing this week.Light trade occurred in Nebraska and Iowa/Minnesota on Thursday; but for the most part, trade was delayed until Friday.Live prices were mostly $82 on Friday -- $1 lower than last week.Dressed prices were $131 to $132 -- $1 to $2 lower than last week.Through mid-afternoon Friday, the volume of sales at these lower prices was light as feeders appeared reluctant to part with too many cattle at the price being offered.Cattle slaughter has picked up some from last week but remains well below year-ago levels:639,000 head this week, 615,000 head last week, and 662,000 head last year.Hog slaughter picked up quite a bit this week: estimated at 2,104,000 this week compared with 2,030,000 head last week and 2,093,000 head a year ago.
Feeder cattle markets had kind of a disappointing run this week.Last week’s higher fed cattle prices and declining corn prices had the market set up for a strong week, and it did seem to start out that way.Sharp declines on feeder cattle futures on Tuesday and Wednesday knocked buyers back on their heels, though; and the market softened up as the week wore on.At Oklahoma City, feeder cattle were steady to $2 lower.Stocker steers and heifers once again were not well-tested.In Lexington, KY, feeder steers and heifers were generally steady to $2 lower, although 7-weight steers were noted to be as much as $2 to $3 higher.Stocker steers were lower early but higher at the close to average about steady.Stocker heifers were weak to $2 lower.In West Plains, MO, prices on steers over 850 pounds and heifers over 700 pounds were $1 to $2 lower.Steers under 850 pounds were unevenly steady (though 7-weights were steady to $2 higher).Heifers under 700 pounds were $1 to $3 higher.In Arkansas, prices on all classes were firm to $3 higher.In Georgia, feeder steers were steady to $1 higher; feeder heifers were steady.Stocker steers and heifers were mostly steady.
At Mississippi auctions this week prices were called $1 to $4 higher on all classes. Price for steers (medium and large, 1-2) in Mississippi auctions throughout the week were as follows: 200-300 pounds, $120-$130; 300-350 pounds, $115-$125; 350-400 pounds, $105-$115; 400-500 pounds $95-$106; 500-600 pounds $92-$105; 600-700 pounds $90-$102; 700-750 pounds, $90-$100; 750-800 pounds, $83-$90. Slaughter cows were $1 to $2 lower this week. For the week cows brought $38-$45 for boning cows (850-1,200 lbs) and $35-$43 for lean (850-1,200 lbs).
Live Cattle futures were up and down this week, but ended pretty close to even with last week.Live cattle were substantially higher on Tuesday despite the fact that Lean Hogs were sharply lower.On Wednesday, those gains and then some were given back as the market saw little in the way of fundamental support for higher prices.Live Cattle futures closing prices on this Friday (with change from last week’s close in parentheses) were as follows: August $84.70 (+0.17); October $90.20 (+0.45); December $89.22 (-0.28); February $89.17 (+0.37); April $90.80 (+0.58); June $87.95 (+0.45).
Feeder futures largely followed live cattle this week.Notably, despite higher corn futures on Thursday, feeder cattle futures managed to post small gains, supported by the fairly strong performance of Live Cattle futures.All contracts added to those gains on Friday, but for the week, most contracts were a few cents lower.Feeder Cattle futures closing prices on Friday (with change from last week’s close in parentheses) were as follows: August $102.35 (-0.20); September $102.55 (+0.20); October $102.52 (-0.23); November $102.65 (-0.05); January $101.70 (-0.30).
Corn futures have been relatively quiet for the last couple of weeks, moving sideways since bottoming out following a big drop in the latter half of June.This week, corn futures caught a bit of a spark at the end of the week.The announcement of a sizeable soybean purchase by the Chinese (mostly for the upcoming marketing year) was a surprising bit of supportive fundamental news in a market that has been beaten down pretty hard of late.Strong outside market performance (i.e., the stock market and crude oil futures) at the end of the week added to the demand-side support.Prospects for the developing crop continue to look good, with crop condition ratings holding at around 70% good-to-excellent.This week, though, the market’s focus on the demand side moved prices higher. September corn closed at $3.39 ½, up 23 ¼ cent over last week.
Wholesale beef prices have improved noticeably in the last couple of weeks.This week, prices sagged a little.The Choice cutout worked out to $141.64 on Friday, down $1.21 from last Friday.The Select cutout fared slightly better, coming in at $135.74 on Friday afternoon, down $0.97 from last Friday.