The cattle market traded mostly higher over the week, regaining some of the previous week’s losses.
Live cattle futures traded steady to higher over the week. The October contract gained about $4 to close at $214.30, and the December contract gained a little less than $2 to close at $216.12.
“After eight days of consolidating near its recent lows, CME cattle futures have taken off and are staging an impressive short-term rally today,” wrote Cassie Fish, market analyst, in The Beef on Thursday. “Given the fundamentals, it’s hard to see this rally is anything other than a correction after an extended downtrend.”
Cash trade through Thursday totaled about 37,000 head. Live steers sold from $215-219, and dressed steers sold from $340-348.
Cash trade for the week ending Aug. 30 totaled 73,257 head. Live steers averaged $219.87, and dressed steers averaged $345.50.
“There are plenty of market-ready fed cattle available in the north, especially over the next 60 days,” Fish said. “It’s critical that fed cattle slaughter levels increase or front-end currentness will be negatively impacted.”
Slaughter through Thursday totaled about 412,000 head, compared to 415,000 head a week earlier. Total slaughter for a week earlier is estimated at 542,000 head. Actual slaughter for the week ending Aug. 22 was 527,019 head. The average steer dressed weight was 967 lbs., up 1 lb. from the prior week.
“This past week, the slaughter volume increased as packers took the opportunity to make hay while the sun shines,” the Cattle Report wrote. “Profits have returned to the packers helped by a reduction in slaughter capacities, demoralized sellers, and firm demand for beef.”
Boxed beef prices closed lower over the week. The Choice cutout lost about $6 to close at $376.90, and the Select cutout lost about $8 to close at $350.72.
“Further significant downside is anticipated this month,” Fish said. “A slaughter this week of 530k or less is even more of a disappointment because next week is one of six major packing plant holidays and all will be dark on Monday.”
The lean beef trim contracts continue to see little movement. The 50% lean trim September contract was unchanged at $151 and the October contract at $138.30. The 90% lean trim September contract was down $5 to $440 and the October contract gained a dollar to $422.
Feeder cattle
Feeder cattle futures were able to gain back some of the previous week’s losses. The September contract gained about $6 to close at $325.85 and the October contract gained about $3 to close at $321.10.
The CME Feeder Cattle Index lost about $6 to close at $329.18.
Corn futures traded sideways over the week. The September contract gained a penny to close at $5.15, and the December contract gained 4 cents to close at $5.40.
Iowa: Russell Livestock in Russell sold 1,883 head on Monday. An accurate trend could not be established due to a lack of a recent sale, but demand was very good. Benchmark steers averaging 724 lbs. sold from $343-375, averaging $361.18.
Missouri: Joplin Regional Stockyards in Carthage sold 3,500 head on Monday. Compared to the previous auction, feeder steers under 750 lbs. sold $10-15 lower, while heavier weights sold $5 lower to $5 higher. Feeder heifers sold from $5 lower to $5 higher. Benchmark steers averaging 772 lbs. sold from $333-335, averaging $333.58.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 3,700 head on Monday. Compared to the last auction, feeder steers and heifers were too lightly tested for a market direction. A significant number of unweaned calves appeared in the market and were trending lower in price. Benchmark steers averaging 718 lbs. sold from $335-350, averaging $339.33.
South Dakota: Sioux Falls Regional in Worthing sold 1,251 head on Monday. Compared to the last auction, there were few comparable sales of yearling feeder steers. Heifers sold mostly $5 lower. Benchmark steers averaging 793 lbs. sold for $322.
Texas: Giddings Livestock in Giddings sold 946 head on Monday. Compared to the previous auction, feeder steers under 600 lbs. sold $4-15 lower, while the heavier steers over 600 lbs. were $2-6 higher. Feeder heifers under 500 lbs. sold $8-15 lower, while heifers over 500 lbs. were $2-5 higher. Benchmark steers averaging 709 lbs. sold from $305-325, averaging $314.79. — Anna Miller Fortozo, WLJ managing editor
