Prices steady in the North and SouthPrices steady in the North and South
Corn futures continue to be a layer of support under the market for feeder cattle.
July 31, 2024

By Trey G. Freeman, Commodity Futures Broker/Livestock Agent, Ever.AgCash trade in the South began last week at $188 per hundredweight and crept up to $190 as the weekend approached, up $2 on the week. Trade in the North wasn’t established until Friday where packers paid $198 per hundredweight and $312 dressed, up $2. The trade viewed this as friendly, expecting steady prices in the South and steady to lower in the North.
Choice boxed beef prices have dipped nearly $17 per hundredweight lower on the weekly average from four weeks ago, finishing at $313.11 for the week. All the while cash has held mostly firm. This is pressuring packer margins, enticing them to reduce slaughter hours to help prop boxed beef prices, albeit to little avail so far.
Cold storage data released Friday by USDA showed beef stocks at 410.3 million pounds on June 30, virtually unchanged from a year ago. Beef stocks trended lower for the first half of the year, sitting below 2023 levels for a time, but that gap is gone. Seasonally, beef in cold storage begins to rise beginning in July.
Open interest in live cattle had a nice surge last week, up 7,363 contracts for the week, fueling October futures to a nine-month high and finishing $5.075 per hundredweight higher on the week at $188.55. This is the highest open interest has been in live cattle since September 25 of last year.
August feeders finished the week $4.100 per hundredweight higher at $259.700. August managed to close over the 100-day moving average for 2 consecutive days to end the week. Friday’s low was right on the 100-day moving average at $258.275 per hundredweight. Resistance above the market stands at the psychologically important $260 per hundredweight level. A close above this opens the door to $264 per hundredweight. Corn futures continue to be a layer of support under the market for feeder cattle. December corn finished over 10 cents per bushel off its high Friday, giving up most of the week’s gains.
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