In this file:
· Fed Cattle Recap | Steady to higher for the week
· Fed Cattle Trade Finds Winners And Losers
Fed Cattle Recap | Steady to higher for the week
The cash trade for fed cattle was steady to $2 higher. Notably, very few future delivery sales were recorded.
Ed Czerwien, BEEF Magazine
Jul 09, 2019
The give and take in the cash market is alive and well, although it seems that cattle feeders are giving and packers are taking. That role was reversed just a bit for the week ending July 6. Packers still have the leverage, but feedyards are current and while carcass weights are increasing, they are still slightly below a year ago.
The feedlot cattle trades were steady early in some areas but up to $2 per cwt higher as the week progressed. Meanwhile, total cash sale numbers were very close to the previous week but included very low numbers of 15- to 30-day delivery.
The Five Area formula sales volume totaled 241,437 head, compared with about 266,000 the previous week. The Five Area total cash steer and heifer volume was 71,995 head, compared with about 72,000 head the previous week.
Nationally reported forward contract cattle harvest was about 38,000 head for the week ending July 6 after the previous week’s big number at 84,000 head. The packers have 191,000 head for July and 226,000 head for August.
National cash sales for the week included only about 4,366 head of 15- to 30-day delivery. But packers had 40,000 head from the previous two weeks. We’re seeing a typical seasonal drop in 15- to 30-day sales now.
Now looking at prices, the Five Area weekly weighted average...
more, including audio [4:01 min.]
Fed Cattle Trade Finds Winners And Losers
Brad Hulett, Drovers
July 9, 2019
Many feeders in the south chose the early opportunity to trade as they either wanted to move cattle or did not trust the market to be steady. But the early trades in Kansas and Texas at $109 left a $1 on the table by the end of the week. All indications were that the packer was short bought. By the end of the week, feeders with front-end cattle traded cash cattle at $110 in the south.
The north held fast on the belief the packer was low on inventory, and those feeders were rewarded with trade $3.50 to $5 higher. Feeders in the north were able to get $113.50 live and $180 dressed for the majority of the cattle with a few front-end cattle bringing up to $115.
Over the next few weeks patience and a calm trigger finger could be profitable to the cattle feeder. The trade in the north has been strong and could pull the south up to a higher cash price...