AND STOCKER CATTLE
(Federal-State Market News)
St. Joseph, Mo.
This week Last week 2017
178,400 242,300 164,300
Compared to May 25: Steers and heifers sold 2.00 lower to 2.00 higher on the holiday-shortened week. There were reduced receipts at auctions nationwide as many sales took the week off to celebrate the Memorial Day holiday.
The stands may not have been full of buyers this week, however the normal players showed up to procure limited supplies of top quality feeders. Yearlings are getting harder to come by as most have been sold by this time of year.
On Memorial Day at Russell Livestock Auction in Russell, Iowa, 225 head of light 7-weight steers sold from 159.50 to 165.00 for a weighted average of 162.05.
On Tuesday at Unionville Livestock in Unionville, Mo., two loads of steers weighing 919 and 934 lbs sold for 131.85 and 132.25 respectively, while a load of 955 lb bigger brothers sold for 129.75.
On Wednesday at Huss-Platte Valley Livestock in Kearney, Neb., two loads of steers weighing 958 lbs sold at 130.00.
Packers didn’t need to get aggressive this week again as they procured enough last week to get through the holiday week. Weekly volume of fed cattle trading was considered very light last week with only 50,680 head trading on a negotiated cash basis nationwide; the 11th lowest weekly trading volume since MPR started reporting this series in November 2002.
This trading volume was also the lowest since September 2016 when 50,074 were swapped with packers.
Fed cattle trading did occur this week in the Southern Plains at 110.00, while the Northern Plains still hasn’t been established as of this writing.
The CME Cattle Complex was erratic this week as the Live Cattle contracts were around 1.00 lower on Tuesday only to make limit up moves on Wednesday on the front three contracts.
Some weakness was then shown on Thursday and Friday to close the week only 0.25 higher on the June, 1.32 higher on the August and 0.45 higher on the October.
Compared to last Friday, the December and February 2019 Live Cattle contracts were 0.67 to 0.12 lower, respectively.
Feeder Cattle futures did not take much of a direction one way or the other on Tuesday to be followed with basically 2.50 to 3.50 higher day on Wednesday.
Weakness in the Live Cattle spilled over to the Feeders on Thursday and Friday to close the week 1.35 to 2.15 higher than last Friday’s close.
Boxed-beef movement was largest of the year last week with over 1600 loads reported sold with very good export sales despite the dollar index posting highs for the year. Typically, an increasing dollar slows buying activity, but export sales continue to be aggressive.
Beef demand seems to be hitting on all cylinders with retailers featuring beef, which is promising with the large supply of fed cattle and demand is exceeding expectations.
For the week, Choice cutout closed 0.10 higher at 227.53 while the Select cutout closed 0.18 higher at 204.80.
The actual federally inspected cattle slaughter for week ending May 19 totaled 667,613; the largest weekly cattle slaughter since August 2011.
Steer and heifer slaughter was also running at a pretty good clip or that week as near 540K were harvested, the largest total for those classifications since June 2011.
On Monday, corn was rated at 79 percent good to excellent; 14 percentage points higher than a year ago at this time. Auction volume this week included 52 percent weighing over 600 lbs and 41 percent heifers.
Slaughter cattle trades not well established in Texas and Kansas.
Few live trades in Nebraska sold steady with dress sales to lightly tested for an accurate market test. Packer demand moderate.
Boxed Beef prices as of Friday afternoon averaged 216.17 up 0.14 from last Friday. The Choice/Select spread is 22.73. Slaughter cattle on a national basis for negotiated cash trades through Friday afternoon totaled 46,894 head. Last week’s total head count was 31,350.
Midwest Direct Markets: Live Basis: Steers and Heifers: few 110.00-111.00.
Dressed Basis: Steers and Heifers: N/A.
South Plains Direct Markets:
Live Basis: Steers and Heifers few 110.00.
Slaughter Cows and Bulls (Average Yielding Prices): Slaughter cows and bulls mostly firm to 3.00 higher. Packer demand moderate to good. Cutter Cow Carcass Cut-out Value on Friday afternoon was 177.15 up 1.29 from last Friday.
Direct Feeder Cattle
This week Last week 2017
110 2,054 950
Compared to May 25: Feeder steers had limited receipts and no test on feeder heifers. The feeder supply included 100 percent over 600 lbs and no heifers.
Unless otherwise stated prices are FOB weighting points with 2-3 percent shrink or equivalent and a 5-10 cent slide on calves and a 4-12 cent slide on yearlings from base weights. Current sales are up to 14 days delivery.
Feeder Steers Medium and Large 1:
110 Head: 900 lbs; Avg Price 138.50; Current Del
Feeder Heifers: No Test