Recent developments in cattle and beef markets

Cash prices varied by region, with notable shifts in boxed beef values. Futures prices faced pressure while open interest declined.

Last week, cash traded $2 per hundredweight lower in the South, from $188 to $191. In the North, cash traded fully steady at mostly $198 and $312 dressed. Weekly slaughter was estimated at 601,000 head. This was 79,000 more than last week (holiday shortened) and 32,000 less than a year ago.

Choice boxed beef prices averaged $324.29 per hundredweight, down $5.76 from the week prior. Primal rib and loin cuts are leading the way lower, down $47.30 and $23.65 for the week, respectively. On the other hand, lean 90s hit an all-time high of $379.75.

Cash is expected to move lower over the next few weeks as the summer heat takes its toll on beef demand, with consumers turning away from middle meats. However, lean trimmings are likely to provide a layer of support under boxed beef prices.

The Goldman Roll concluded last week, pressuring August live cattle futures $4.05 per hundredweight lower on the week to $182.075. August remains at a $12 discount to the 5-Area Weekly Fed Steer price of $194.24 with FND (first notice day) three weeks out.