Live Cattle in the USA

Though it was surprising, the live cattle complex was able to sustain its higher tone through Monday’s end. August live cattle closed steady at $182.80, October live cattle closed $0.72 higher at $179.02 and December live cattle closed $0.25 higher at $178.37. Following last week’s lower trend, the market was given an opportunity to trade higher through Monday’s market as traders had worked the complex away from resistance levels. It’s disappointing to see the market back below its 100-day moving average, but until boxed beef demand shows stable interest and until the cash cattle market regains some footing — the complex could continue to trade in this choppy sideways manner. Monday’s slaughter is estimated 117,000 head — 5,000 head more than a week ago and 5,000 head less than a year ago. New showlists appear to be mixed, somewhat higher in Texas, but slightly lower in Nebraska/Colorado and lower in Kansas.

Last week Northern dressed cattle sold for mostly $298, which is $6.00 lower than the previous week’s weighted average, but live sales in the North were marked at mostly $190, which is $2.00 to $3.00 lower than the previous week’s weighted average. Southern live cattle were traded at mostly $185, which is $1.00 to $2.00 lower than the previous week’s weighted average. Last week’s negotiated cash cattle trade totaled 73,238 head. Of that 70% (51,194 head) were committed to the nearby delivery, while the remaining 30% (22,044 head) were committed to the deferred delivery.

Boxed beef prices closed lower: choice down $1.90 ($315.55) and select down $0.58 ($302.01) with a movement of 135 loads (95.00 loads of choice, 22.06 loads of select, 4.14 loads of trim and 13.32 loads of ground beef).