Cattle futures climbed higher after higher cash trade from the weekly Central Stockyards Fed Cattle Exchange auction saw 519 head sold of the 2,652 head offered, at $186.76 for steers in Texas and $188.50 using the Bid the Grid method.
Live cattle futures closed higher, with the October contract up almost $2 to $186 and the December contract up $1.58 to $186.40.
Cash trade had yet to develop, with about 4,300 head sold. Live steers sold for $187, and dressed steers sold for $295-300.
“In market fundamentals, there has been very light trade volume thus far in the negotiated market, with Iowa trading 900 steers at $187 yesterday and the national total around 3k head,” Cassie Fish, market analyst, wrote on Thursday for The Beef. “Nebraska, Texas and Kansas had not traded any cattle as of yesterday and bids are scarce today. Last week’s tops were $185 in the south, $187 in Nebraska and $188 in Iowa.”
Cash trade through Sept. 29 totaled 81,235 head. Live steers averaged $186.25, and dressed steers averaged $293.76.
The national weekly direct beef type price distribution for the week of Sept. 23-30 was the following on a live basis:
• Negotiated purchases: $186.38.
• Formula net purchases: $185.31.
• Forward contract net purchases: $189.01.
• Negotiated grid net purchases: $184.75.
On a dressed basis:
• Negotiated purchases: $293.72.
• Formula net purchases: $292.07.
• Forward contract net purchases: $293.03.
• Negotiated grid net purchases: $292.90.
Total slaughter through Thursday is estimated to be 491,000 head, 4,000 head above the prior week. The total projected slaughter for a week earlier was 612,000 head. Actual slaughter for the week ending Sept. 21 was 614,409 head. The average steer dressed weight was 948 lbs., 3 lbs. higher than the prior week.
“The last year which saw a record setting, year-over-year acceleration of carcass weights of such a dramatic amount was 2015,” Fish wrote on Thursday. “2015 steer carcass weights averaged 19 pounds more than 2014, a year-over-year feat never achieved prior. This year isn’t complete, but at this pace, exceeding a 19-pound annual gain ought to be easy.”
Boxed beef prices rose, with the Choice cutout up $3.43 to $299.80 and the Select cutout up 92 cents to $283.29.
“This week thus far, boxed beef prices have stabilized and improved a bit, thanks to the beginning of holiday rib demand,” Fish wrote on Tuesday. “Sloppy lean beef prices and improving choice rib values have combined to push the Choice/Select spread back out over $15/cwt. The degree of the Q4 cutout rally will depend primarily on the rib.”
Feeder cattle
Despite a few days of trading lower, feeder cattle futures were higher. The October contract was up a little over $2 to $248.97, and the November contract climbed $4.72 to $248.12.
The CME Feeder Cattle Index was up $4.05 to $248.25.
Corn futures were higher, with the December and March contracts up 15 cents to $4.28 and $4.46, respectively.
Colorado: Winter Livestock in La Junta sold 2,761 head on Tuesday. Compared to the last auction, feeder steers under 500 lbs. sold mostly $5-7 higher and over 500 lbs. sold mostly $5-11 lower, with instances of sharply lower. Feeder heifers under 450 lbs. sold mostly $28-31 higher. Heifers between 450-800 lbs. sold $3-4 lower, and over 800 lbs. sold $31 higher. Benchmark steers 766 lbs. sold for $223-225, averaging $224.26.
Kansas: Winter Livestock in Dodge City sold 1,415 head on Wednesday. Compared to the last auction, feeder steers 700-950 lbs. sold $3-5 higher. Feeder heifers 600-875 lbs. sold $3-6 lower. Benchmark steers averaging 707 lbs. sold for $260.50-267.25, averaging $264.74.
Missouri: Joplin Regional Stockyards in Carthage sold 5,500 head on Monday. Compared to the last auction, feeder steers under 800 lbs. sold steady to $8 higher and over 800 lbs. sold steady to $3 lower. Feeder heifers sold steady to $8 higher. Benchmark steers averaging 772 lbs. sold for $244.50-258, averaging $255.15.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 6,200 head on Monday. Compared to the last auction, feeder steers and steer calves sold $3-8 higher. Feeder heifers over 800 lbs. sold $5 higher and under 800 lbs. were unevenly steady. Heifer calves sold $3-8 higher. Benchmark steers averaging 713 lbs. sold for $248-261, averaging $254.70. — Charles Wallace, WLJ contributing editor
