The cattle market drifted mostly lower over the week following Tyson’s beef plant closure announcements, although news of Fort Morgan, CO, beef plant workers ratifying a labor agreement gave the market some mid-week support.
Live cattle futures traded lower. The August contract lost about $7 to close at $223.35, and the October contract lost about $5 to close at $218.
“The livestock complex continues to chop sideways as traders are desperate for greater fundamental support but aren’t seeing it surface in the market consistently,” wrote ShayLe Stewart, DTN livestock analyst, in her Thursday midday comments.
Cash trade through Thursday totaled about 45,000 head. Live steers sold from $223-226 and dressed steers sold from $355-360.
Cash trade for the week ending Aug. 16 totaled 50,576 head. Live steers averaged $228.04, and dressed steers averaged $364.92.
“Close outs at the nation’s feedyards are in the red and they are reflecting the sharp fall in cash prices that has taken cash prices downward by $35/cwt,” the Cattle Report wrote on Thursday. “The weekly supply of fed cattle will remain tight through year’s end, but packers will gain leverage in the balance between cattle owners and processors.”
Slaughter through Thursday totaled about 412,000 head, compared to 416,000 head a week earlier. Total slaughter for a week earlier is projected at 517,000 head. Actual slaughter for the week of Aug. 8 was 505,828 head. The average steer dressed weight was 967 lbs., up 5 lbs. from the prior week.
Boxed beef prices closed higher over the week. The Choice cutout gained about $17 to close at $389.93, and the Select cutout gained about $14 to close at $363.74.
“Both box prices and live cash prices for cattle are now trading under last year,” the Cattle Report said. “The status for fed supplies will remain tight through year end and the industry will be watching how the plant closings change the leverage between processor and feeder.”
Lean beef trim futures closed lower over the week. The 50% lean trim August contract lost $8 to close at $161, and the September contract also lost $8 to close at $151. The 90% lean beef trim August contract was unchanged at $449, and the September contract gained $3 to close at $445.
Feeder cattle
Feeder cattle futures also traded lower. The August contract lost about $11 to close at $346.35, and the September contract also lost about $11 to close at $339.35.
The CME Feeder Cattle Index lost about $12 to close at $342.36.
Corn futures saw gains, with the September contract up 21 cents to close at $4.78 and the December contract up 23 cents to close at $5.03.
“It’s unlikely buyers will be much more aggressive in the countryside as there are a lot of unweaned calves working their way into the market and they come with high risk,” Stewart said.
Missouri: Joplin Regional Stockyards in Carthage sold 4,043 head on Monday. Compared to a week earlier, feeder steers sold steady to $10 lower and feeder heifers sold $2-12 lower. Benchmark steers averaging 768 lbs. sold from $334-355, averaging $345.85.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 2,921 head on Monday. Compared to a week earlier, feeder steers and heifers sold $5-15 lower. Steer and heifer calves sold $10-20 lower. Benchmark steers averaging 769 lbs. sold from $340-359, averaging $348.85.
South Dakota: Sioux Falls Regional in Worthing sold 3,173 head on Monday. Compared to two weeks earlier, feeder steers over 900 lbs. sold $5-10 lower and feeder heifers sold $10-20 lower. Benchmark steers averaging 736 lbs. sold for $353. — Anna Miller Fortozo, WLJ managing editor
