The short-term demand fundamentals continue to look weak as summer heat and humidity dent consumer demand. In addition, there is a tendency for producers to move a few more cattle to market during periods of near record high feed prices. This tendency could increase into the fall as pasture conditions deteriorate. The outlook into next spring looks especially tight on supply and April cattle pushed to the highest level since March this week. August cattle spent the day in the lower half of Monday's trading range yesterday and took out Monday's lows in the process. Weakness in the beef market in the past few days helped to pressure, but a lack of new interested sellers and talk that cash cattle in the southern plains could trade higher this week was positive for the market. The estimated cattle slaughter came in at 128,000 head, down from 129,000 last week and 129,000 a year ago. Total slaughter for the week so far has reached 255,000 head, steady with last week and down slightly from 257,000 a year ago. The estimated cattle slaughter came in at 128,000 head yesterday, which was slightly above expectations. This brings the total for the week so far to 255,000 head, unchanged from last week at this time but down from 257,000 a year ago. Boxed beef cutout values were down 42 cents at mid-session yesterday and closed $2.16 lower at $188.35. This was down from $194.63 the prior week and is the lowest beef market since April 20th.
Join the Discussion