Cash Cattle Begin August Trading Higher, Boxes Surge Again
Cash cattle bids were higher last week, with a top in Iowa late week at $126. Trade in the North was called moderate to active at $124 to mostly $125 live, and $197 to mostly $198 dressed, $2 to $3 higher. Trade in the South ranged from $119 to $122 with the bulk at $121, $1 higher.
Estimated weekly slaughter was 641,000 head compared to 632,968 head last year. The total year to date was 19.88 million head, 4.4% higher than last year.
Boxed beef prices surged higher this week, a combination of buying ahead of the Labor Day market and the continuing bottleneck of packer capacity versus demand. Analysts also note transportation glitches as shippers struggle to find drivers. Friday’s Choice boxed beef closed at $296.26 per cwt., up $17.80 for the week. Select boxed beef ended the week at $277.09 per cwt., up $17.90.
Futures prices ended the week higher. Expiring August futures edged up 42.5 cents to $123.00, while most-active October added 30 cents to $127.875. Those closing quotes represented gains of 92.5 cents and 67.5 cents for the week, respectively.
Feeder cattle were called steady to $3 higher on the week. Calves traded mixed, from $2 lower to $3 higher.
Friday’s jobs report held good news as the U.S. economy added 943,000 non-farm payrolls in July, while figures from the two previous months were increased a combined 119,000 jobs. Analysts had expected the addition of 845,000 payrolls in July. The unemployment rate fell 0.5 point to a pandemic-era low of 5.4%. Nearly 6 million fewer workers are employed than before the pandemic struck. Average hourly earnings rose 0.4% in July and jumped 4.0% over the past year.
