The cattle market traded mostly steady over the holiday-shortened week. Slaughter levels will be diminished over the week, but boxed beef prices continue to sell steady.
Live cattle futures saw some gains over the week. The October contract gained $1.57 to close at $144.37, and the December contract gained $1.08 to close at $149.65.
Cash trade was slow to start but picked up on Thursday, with over 43,000 head sold. Total cash trade through Thursday morning for the week was about 57,000 head. Live steers sold from $138-144, and dressed steers sold from $226-230.
Cash trade through Sept. 4 totaled only 75,260 head. Live steers averaged $143.17, and dressed steers averaged $228.91.
“Packers know in the weeks ahead they won’t be able to control the market as much, as beef demand through September is usually slow and they’re still able to play off the shortened week thanks to Labor Day,” ShayLe Stewart, DTN livestock analyst, wrote in her Thursday midday comments.
“But as the market gets closer to October and market-ready supplies run even thinner, feedlots will then sit in the driver’s seat of the cash cattle market and prices are expected to get substantially higher.”
The national weekly direct beef type price distribution for the week of Aug. 29 to Sept. 5 was the following on a live basis:
• Negotiated purchases: $143.30.
• Formula net purchases: $147.39.
• Forward contract net purchases: $146.30.
• Negotiated grid net purchases: $145.90.
On a dressed basis:
• Negotiated purchases: $228.91.
• Formula net purchases: $232.13.
• Forward contract net purchases: $219.22.
• Negotiated grid net purchases: $231.69.
Slaughter through Thursday totaled 385,000 head, down about 113,000 head from a week earlier due to the holiday-shortened week. Projected slaughter for a week earlier is 638,000 head. Actual slaughter for the week ending Aug. 27 was 677,878 head. Steer dressed weights were 904 lbs.
Boxed beef prices traded steady over the week. The Choice cutout gained 6 cents to close at $258.01, and the Select cutout lost 55 cents to close at $236.04.
“USDA’s actual slaughter data report (was) released today, showing the fed slaughter for (the) week ended August 27 at 533,320 head, the largest weekly fed slaughter of 2022 and the largest fed slaughter occurring in August since 2010. That is not a typo,” wrote Cassie Fish, market analyst, in The Beef.
“This is proof that plants are running better M-F, beef demand is still strong and packer margins, though smaller than the last three years (all impacted by anomalies) are still acceptable.”
Feeder cattle
Feeder cattle futures traded mostly steady over the short week. The September contract lost 83 cents to close at $182.32, and the October contract gained 5 cents to close at $184.40.
The CME Feeder Cattle Index lost $2.05 to close at $180.31.
“Current prices have now moved $30/cwt higher on 750# steers compared to last year while calves have jumped $40/cwt over last year’s prices,” the Ag Center wrote in the Cattle Report.
“The large anticipatory premiums in the deferred futures prices have largely disappeared. In this inflationary environment, these prices have raised the breakeven bar to highly elevated levels that may prove to be challenging.”
Corn futures have found their momentum higher and saw some gains. The September contract gained 16 cents to close at $6.74, and the December contract gained 10 cents to close at $6.68.
Iowa: Russell Livestock in Russell held their annual Labor Day cattle sale and barbecue Monday and sold 6,151 head. Compared to the last auction, steers were mixed, with 450-500 lbs. $7 higher, 600-650 lbs. $6 lower and 650-700 lbs. $9.50 higher. All heifer weight groups were higher. Heifers 500-550 lbs. were $9.50 higher, and heifers 550-750 lbs. were almost $2 higher. Benchmark steers averaging 777 lbs. sold between $180-191.75, averaging $188.31.
Kansas: Winter Livestock in Dodge City sold 2,844 head Wednesday. Compared to the last auction, feeder steers 600-1,000 lbs. sold steady to $2 lower. Steer calves 400-600 lbs. sold $5-10 higher. Feeder heifers 700-900 lbs. sold steady to $2 higher. Heifer calves 400-700 lbs. sold $5-10 lower. A group of steers averaging 738 lbs. sold for $178.
Missouri: Ozarks Regional Stockyards in West Plains sold 1,748 head Tuesday. Compared to the previous auction, steer calves over 550 lbs. and all weights of heifers traded $3-6 higher, while lighter steers traded $3-6 lower. Of the offering, 64% weighed under 600 lbs., with many of them short-weaned or unweaned. A group of steers averaging 711 lbs. sold between $180-185, averaging $180.66.
Nebraska: Tri-State Livestock in McCook sold 1,145 head Monday. Tri-State Livestock held this special holiday sale because of the extreme drought in the trade area. Compared to the previous auction, steers 400-550 lbs. sold steady to $5 lower, and heifers weighing the same sold $3-5 lower. There were not enough yearlings for a market comparison. A group of steers averaging 862 lbs. sold for $182.50.
Oklahoma: OKC West in El Reno sold 6,746 head Wednesday. Compared to the last auction, steer calves sold $6-10 higher. Feeder steers sold steady to $5 higher. Benchmark steers averaging 771 lbs. sold between $175.50-185, averaging $180.45.
South Dakota: Hub City Livestock in Aberdeen sold 1,523 head Wednesday. Compared to the last auction, most weight classes were not well compared. The best test on steers 950-1,000 lbs. sold $2-4 lower on a narrow comparison. A group of steers averaging 825 lbs. sold for $187.
Texas: Lonestar Stockyards in Wildorado sold 1,328 head Tuesday. Compared to the previous auction, feeder steers traded mostly steady to firm. Feeder heifers traded firm to $5 higher. Steer and heifer calves traded $5-10 higher. A group of steers averaging 730 lbs. sold between $175-179 and averaged $178.
Wyoming: Torrington Livestock in Torrington sold 6,595 head Wednesday. Compared to the last auction, feeder steers and heifers traded $3-7 higher. There was not a trend on calves right off the cow, but there was a very active market and higher demand for calves with spring and fall shots. Benchmark steers averaging 722 lbs. sold between $184-192 and averaged $188.83. — Anna Miller, WLJ managing editor
