Sort & Cull

Last week there may have been fireworks lit off in celebration of the 4th of July, but at Monday's start both Superior Livestock Auction and Western Video Market began to shoot off their own fireworks as feeder cattle demand at both their online video sales has been utterly incredible.

Reports aren't available yet for either sale, but seeing strings of yearling steers weighing 1,000 to 1,020 pounds sell for $2.45 to $2.53 per pound with delivery in roughly a month was the norm at the beginning of Western Video Market's sale. And steers weighing 500 to 600 pounds were selling consistently for $1,600 to $1,800 with delivery in late August to early September on Superior.

Seeing that type of buyer interest only emphasizes the fact that feeder cattle supplies are thin, and even though some feedlots won't be able to guarantee a breakeven on the calves they're currently buying, they continue to invest in more feeders and pray that the fed cattle market remains strong. Last week's five-area average steer price was $197.09, which is $1.28 higher than the previous week and is the highest in history. But feedlots could be pressured this coming week to get packers back to the table and bidding as aggressively as they have in recent weeks as showlists are higher in all regions and processing speeds could be reduced even more as post 4th of July demand typically dwindles. So much of the live cattle market's fate in the weeks ahead will depend on boxed beef prices and overall consumer demand.

Regardless of if boxed beef prices seasonally top this week, or a month from now (as anything is possible in this market), the feeder cattle complex has established a tone and it continues to prove that prices will trade above a year ago for this year's calf crop. If you haven't yet decided on how you're going to market your calves/feeders this year, I'd highly recommend that you spend some time doing so as there's a lot of money currently on the table, and these type of markets don't sit around and wait for anyone.

ShayLe Stewart can be reached at ShayLe.Stewart@dtn.com

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