Date: June 6th, 2022
Livestock futures finished the week mixed but both fats and feeders higher week over week, especially feeders. Feeder cattle finished the week with three sharply higher days in a row as grains were under pressure most of last week. Negotiated cash fed cattle trade lower again this past week at mostly $2 lower with live trade in the TX and KS at $135 and in Nebraska $139 live and $222 dressed. For Kansas specifically, this is the third straight week of a declining negotiated cash price. June Live Cattle now trading less than $2 discount to Southern Plains cash.
For the week, Friday May 27th through Friday June 3rd, June Live Cattle +$1.42, August +$1.45, August Feeder Cattle +$7.55, September +$7.00, June Lean Hogs -$.20, July -$.97. Boxed Beef, Choice +$1.84 @ $267.26, Select +$3.52 @ $250.02, Pork Carcass Cutout +$3.22 @ $109.38.
Oklahoma Weekly Cattle Auction Summary
Livestock Weighted Average Report for 5/29/2022 – 6/4/2022
Current Week: 12,647 Last Report 5/23/22: 25,094 Last Year: 10,378
Compared to last week: All classes lightly tested as all Monday sales and some Tuesday sales were closed for the Memorial Day holiday. Heavy rains across the state once again contributed to the lighter numbers as well. Feeder steers sold 2.00-6.00 higher. Feeder heifers steady to 4.00 higher. Demand moderate to good for feeder cattle as feeder futures made gains this week. Steer calves traded mostly steady. Heifer calves sold steady to 4.00 higher.
Cattle slaughter from Friday estimated at 126,000 head and Saturday 96,000 head. For the week, 603,000 head, down 41,000 from the week previous but up 59,000 from last year. Beef production estimated at 493.3 million pounds with the year to date difference now up to +1.2% vs. last year and year to date slaughter +1.0%.
Hog slaughter from Friday estimated at 478,000 head and Saturday 145,000 head. For the week, 2,044,000 head, down 300,000 compared to the week previous but up 57,000 compared to a year ago. Pork production last week estimated at 445.5 million pounds with year to date pork production at -4.1% compared to a year ago and hog slaughter -4.6%.
Boxed beef cutout values on Friday higher on weak to moderate demand with 88 loads sold.
Choice Cutout__267.26 +.61
Select Cutout__250.02 +.39
CME Feeder Cattle Index__153.48 from June 1st
CME Lean Hog Index__106.05 +1.02
Pork Carcass Cutout __109.38 -2.64
National Wtd Avg Cash Carcass Base__112.09 -3.13, 3,480 head
June live cattle tested resistance at $133.92 last Friday with the next up at $136. Nearby support is at $132.50 with the new 8-month low hit just last Tuesday at $130.22. August feeders up to a new recent high on Friday at $174.27 with resistance at $175 then $177.50 and support at $168.50. June lean hogs still holding the month long higher trend with support at $105 and resistance at $111.60.
Grains finished another week under pressure, actually the 3rd week in a row of lower settlements for corn and wheat futures. Russia’s Putin on Friday said there are currently no problems shipping grain out of the Ukraine, and they will guarantee the safety of exports from those ports. This banter has been repeated now for over a week pressuring wheat futures primarily then corn if exports can in fact be opened fully in Ukraine. Soybeans have been the most resilient recently even making new contract highs both nearby and new crop last week. Soybeans were the leader though on Friday as weekly export sales were a marketing year low at 4.1 MBU with China cancelling 2.65 MBU.
The CFTC Commitment of Traders report showed managed fund money through the trade week ending 5/31 selling 22.5k corn (net long 268.9k), -7.2k Chicago wheat (net long 15.0k), -3.8k KC Wheat (net long 40.6k), +1.5k beans (net long 164.6k)
For the week, Friday May 27th through Friday June 3rd, July Corn -$.50 ¼, December -$.40, July Soybeans -$.34 ½, November -$.17, July KC Wheat -$1.14 ¼, September -$1.13, July Chicago Wheat -$1.17 ½, September -$1.14 ½, July MPLS Wheat -$1.13, September -$1.11 ¼, July Soybean Meal -$24.40, October -$24.90.
Over the weekend, it was being reported that Russia bombed a port in Ukraine destroying warehouses and a grain terminal. It also continues to be reported that Russia is stealing Ukraine grain and selling it as their own to as Russia increased their export estimates. Airstrikes also resumed in Ukraine’s capital, the first in weeks. Grains rebounding in the overnight led by the wheat markets. Equites pointing higher this morning and crude oil steady after opening last night up nearly $2 pushing the nearby contract above $120 for the first time. Corn and soybeans finished the overnight 8 to 10 higher and wheat 30 to 37 higher.
USDA will update crop progress later this afternoon and the first crop conditions for corn and soybeans. Scattered and possibly heavy rains in the forecast this week across the Plains first then into the Corn Belt and Southeast later in the week. The 6-10 day outlook showing above normal temps centered on the Southwest extending across the Southern Plains with below normal in the ECB and below normal moisture centered in the Southern Plains.
July corn holding a lower trend over this past month with a new recent low last week at $7.20 ½ and resistance from $7.70 to $7.80. The December contract hit a new contract high on May 16th at $7.66 ¼ but holding a lower trend since down to a new 2-month low last week at $6.82 with nearby resistance around $7.30 . July soybeans a new contract high last week at $17.49 ¼ with support around $16.70. The November contract holding the long term higher trend, also a new contract high last week at $15.60 ½ with support around $15.00. July KC Wheat finding support last week from $11.20 to $11.12 with resistance at $12.50. July Chicago wheat with support around $10.30 and resistance at $11.70. July MPLS with support at $11.90 and nearby resistance at $12.50. July Soybean Meal with support at $407 and resistance at $437.
Loewen and Associates, Inc.
Pete Loewen / Matt Hines / Doug Biswell / Tyson Loewen
www.loewenassociates.com matt@loewenassociates.com
785-537-3336
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