Cattle futures pressured by sharp drop in boxed beef

At the Chicago Mercantile Exchange, live and feeder cattle were pressured by sharply lower boxed beef and ongoing demand uncertainties. June live cattle closed $3.17 lower at $195.20, and August live cattle closed $2.80 lower at $192.20. May feeder cattle closed $2.90 lower at $275.30 and August feeder cattle closed $3.32 lower at $279.92.

Another light round of direct cattle business was reported Thursday. Deals in the South were marked at $204 live, fully steady with Wednesday’s deals and $4 below the prior week’s weighted averages. Dressed deals in the North were at $328, that is below the previous week’s weighted average basis in Nebraska. Look for additional business to take place on Friday. There was a light, scattered round of business on Wednesday in Kansas at $204 live and in Nebraska at $328 to $330 dressed. Live deals were $4 lower than the previous week’s business and dressed deals were down $5 to $7 from last week’s weighted average basis in Nebraska.

At the Bloomfield Livestock Market in Iowa, steers and heifers less than 600 pounds were not well compared, but sold with a lower undertone. Steers and heifers more than 600 pounds sold higher. The USDA says demand was good both in house and online. Supplies were heavy and included several load lots. Receipts were up from the most recent sale, but down on the year. Feeder supply included 50 percent steers and 94 percent of the offering was over 600 pounds.