Cattle futures faced a turbulent week, driven by a plunge in the equities market and McDonald’s E. coli scare, before surging as cash trade hit $190 in Kansas and Texas.
“Until moments ago, the negotiated fed cattle trade was at a complete standstill,” wrote Cassie Fish, market analyst, in Thursday’s comments for The Beef. “Now three packers are bidding $190 in Kansas and Texas, $2 higher than last week’s $188 top and there has been trade at that level. It would appear sizeable kills are planned beyond this week and packers require cattle inventory. Margins expanded well into the black last week and have improved even more this week.”
Live cattle futures were higher, with the October contract up $2.68 to $189.30 and the December contract up $3.08 to $189.25.
Cash trade was light until Thursday, with 3,000 head sold. Live steers sold for $189-190, and dressed steers sold for $304.
Cash trade for the week ending Oct. 20 was 78,941 head. Live steers averaged $187.63, and dressed steers averaged $296.41.
Slaughter through Thursday is estimated to be 491,000 head. Slaughter for a week earlier was projected to be 608,000 head. Actual slaughter for the week ending Oct. 12 was 585,337 head. The average steer dressed weight was 950 lbs., the same as the prior week.
Boxed beef prices were higher, with the Choice cutout up $1.91 to $321.17 and the Select cutout up 82 cents to $294.34.
Analysts released the pre-report estimates for Friday’s Cattle on Feed report release. The consensus is that cattle on feed will be 99.7% for feedlots of 1,000 head or greater in October. Placements in September are estimated to be 95.8%, and marketings for September are predicted at 102.2%.
Feeder cattle
Feeder cattle futures also closed higher, with the October contract up $2.68 to $249.40 and the November contract up $2.77 to $248.52. The CME Feeder Cattle Index lost 69 cents to $249.56.
Corn futures were higher, with the December contract up 15 cents to $4.21 and the March contract up 14 cents to $4.35.
Missouri: Joplin Regional Stockyards in Carthage sold 8,127 head on Monday. Compared to the last auction, feeder steers under 800 lbs. sold steady to $5 lower, with heavier weights selling steady to $3 higher. Feeder heifers sold from $2 higher to $6 lower. Benchmark steers averaging 720 lbs. sold between $250-265, averaging $255.78.
Nebraska: Tri-State Livestock in McCook sold 3,505 head on Monday. Compared to the last auction, steers were $9-21 lower and heifers were $4-26 lower. Benchmark steers averaging 741 lbs. sold for $276.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 8,620 head on Monday. Compared to the previous auction, feeder steers under 800 lbs. sold steady to $3 lower and over 800 lbs. were steady to $2 higher. Feeder heifers traded steady to $2 lower. Steer calves sold steady to $4 lower, and heifer calves were mostly steady. Benchmark steers averaging 719 lbs. sold for $250-258, averaging $254.89. — Charles Wallace, WLJ contributing editor
