![]() ![]() The driver in forward purchases of cattle will always be forward sales of beef. Basis levels will move up and down as processors want to add to forward contracts or not. The report is also reflective of the current status of fed cattle offerings in each area.įorward Cattle Contracts: Forward contracts will always bear some relationship to the corresponding futures month closest to the delivery month for the cattle. The Weekly Steer and Heifer Grading Report is indicative of regional supplies of choice and prime cattle and often is determinative of regional differences is live price. The combined steer and heifer weights can easily be influenced when the proportion of steers to heifers in the weekly slaughter changes. Carcass weights will be fundamental in determining total beef production. The latest report shows carcass weights at 862# up 2# from prior week and 2# under last year. The report is published each Tuesday and includes the previous week’s change in carcass weights and quality grading. The Comprehensive Fed Cattle Weekly Report offers the most current information on the current status of fed cattle being harvested. Beef producers are able to measure the marketing price for their cattle compared to the national averages. The report summarizes the distributed price levels for each category of sale such as Negotiated/Formula/Forward Contracts. On Tuesday of each week, USDA releases a weighted average price report for all cattle sold the previous week. Until the CME changes the construction of the contract, expect inadequate correlation between cash and futures.īenchmarking. The threat of delivery prevents longs from entering the market. There appears to be little reason for expect futures prices in the August contract to move to a mid point between southern and northern sales. Some traders are developing the view that prices are headed higher into year end. Prices were higher catching up with cash prices that touched $190 in the north. The thin line between cattle placed in a feedyard for growing or finishing is often confusing and sometimes the cattle owner or feedlot operator does not provide a firm designation but makes the decision later.Ĭattle Futures. The current fed supplies and slaughter levels do not fit with USDA placement data from earlier this year and late last year causing some thoughts that dry conditions late last year caused some double counting as many cattle entered grow yard operations. The small slaughter volume is primarily caused by the short supplies at the nation’s feedyards. The upcoming weeks will continue smaller slaughter levels but this may possibly be the bottom weekly level. The summer heat wave is doing little to help beef demand but cooler temperatures are on the horizon for August. The slaughter reduction from last year is 35,000 head. This represents one of the lowest non-holiday slaughter weeks of the year. The slaughter this past week was 613,000 down 6,000 head from the previous week. In the south, a few more cattle are being sold flat dressed, negotiated grid, and live delivered. Southern sales were mainly at $180 on light volumes with higher volumes of sales going unreported. ![]() Last week’s negotiated cash cattle trade totaled 82,805 head, with 74% (60,892 head) being committed to the nearby delivery, and the remaining 26% (21,913 head) being committed to the deferred delivery.īoxed beef prices closed lower: choice down $0.30 ($301.49) and select down $1.47 ($275.01) with a movement of 91 loads (46.75 loads of choice, 24.87 loads of select, 6.72 loads of trim and 13.15 loads of ground beef).Northern live sales were mainly at $188-$189 with outside tops of $190.50. Southern live cattle traded for mostly $180, which is $1.00 higher than the previous week’s weighted average. Last week, Northern dressed cattle traded for $292 to $297, but mostly at $295, which is $1.50 higher than last week’s weighted average. Monday’s slaughter is estimated at 116,000 head, 8,000 head less than a week ago and 2,000 head less than a year ago. Showlists appear to be mixed this week, with there being fewer cattle available in Texas, Nebraska and Colorado, but slightly more available in Kansas. But with packers able to buy some cattle for the deferred delivery commitment last week, this week’s cash cattle market could remain steady as packers did gain some power with their ability to buy cattle with time. No cash cattle trade developed throughout the day and it’s not likely that any trade does develop ahead of Wednesday. August live cattle closed $1.20 lower at $179.70, October live cattle closed $1.47 lower at $181.42 and December live cattle closed $1.27 lower at $185.77. The live cattle complex closed lower as traders remained cautious about overly supporting the market ahead of seeing what this week’s cash cattle trade amounts to. ![]()
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