Trade for the week was choppy; futures were driven by headlines and stock market moves, and beef prices continue their seasonal descent lower.
Live cattle futures closed mostly sideways after seesawing over the week. The October contract gained 10 cents to close at $232.37, and the December contract gained 3 cents to close at $234.15.
“The back-and-forth nature of the live cattle market trade continues,” wrote ShayLe Stewart, DTN livestock analyst, in her Thursday midday comments. “Wednesday afternoon the market closed lower, but thus far throughout Thursday’s trade, the market has been trading slightly stronger.”
Cash trade through Thursday totaled about 12,000 head. Live steers averaged $236-240, and dressed steers averaged $368-374.
Cash trade for the week ending Sept. 14 totaled 61,263 head. Live steers averaged $239.42, and dressed steers averaged $376.49.
The national weekly direct beef type price distribution for the week of Sept. 8-15 was the following on a live basis:
• Negotiated purchases: $239.60.
• Formula net purchases: $246.68.
• Forward contract net purchases: $202.14.
• Negotiated grid net purchases: $251.98.
On a dressed basis:
• Negotiated purchases: $376.88.
• Formula net purchases: $387.49.
• Forward contract net purchases: $319.81.
• Negotiated grid net purchases: $386.26.
Slaughter through Thursday afternoon totaled about 460,000 head, compared to 459,000 head a week earlier. Total slaughter for a week earlier is projected at 561,000 head.
Actual slaughter for the week ending Sept. 6 was 493,830 head.
“Also noteworthy is the seasonal rise in carcass weights, with steer carcass weights in the most recent report by USDA for the week ended September 6 at 958 pounds, up 5 pounds week over week and up 17 pounds year over year,” wrote Cassie Fish, market analyst, in The Beef. “While record carcass weights have become common and have not been a bearish market factor, there is some growing concern that that could change this fall.”
Boxed beef prices continue to plummet lower. The Choice cutout lost about $15 to close at $385.81, and the Select cutout lost about $18 to close at $361.31.
Pre-report estimates for the Cattle on Feed report expected on Friday predicted total cattle on feed as of Sept. 1 will be 99.1% of last year. Placements in August are estimated to be 91% of 2024, and marketings at 87.1%.
Feeder cattle
Feeder cattle futures ultimately closed mixed over the week after trading back and forth. The September contract gained about $3 to close at $358.17, and the October contract lost about 37 cents to close at $351.72.
The CME Feeder Cattle Index lost about $4 to close at $361.36.
Corn futures made some modest gains over the week. The December contract gained 4 cents to close at $4.23, and the March contract gained 7 cents to close at $4.41.
“One notable trend that’s surfacing in sales across the countryside is that now, with the fall run fully underway, calves that are either unvaccinated or unweaned are trading notably lower than those that have been,” Stewart wrote on Tuesday. “And with buyers already paying substantially more for calves this year than in years past, it’s easy to understand why they can’t afford to take much of a risk on those cattle when their initial input price is so high.”
Missouri: Joplin Regional Stockyards in Carthage sold 7,339 head on Monday. Compared to the last sale, feeder steers under 750 lbs. sold $2-10 lower. Heavier weights sold from $3 lower to $8 higher. Feeder heifers sold from $2-15 lower with the most loss on weights under 700 lbs. Benchmark steers averaging 783 lbs. sold from $353-372, averaging $364.54.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 6,000 head on Monday. Compared to the previous sale, feeder steers sold steady and feeder heifers sold $2-6 lower. Steer and heifer calves sold $10-20 lower with unweaned calves selling sharply lower. Benchmark steers averaging 791 lbs. sold from $350-366, averaging $363.97.
South Dakota: Sioux Falls Regional in Worthing sold 1,600 head on Monday. Compared to a week earlier, feeder steers and heifers sold with steady to lower undertones compared to the previous week’s larger offering. Benchmark steers averaging 737 lbs. sold from $380-414, averaging $401.01.
Utah: Producers Livestock in Salina sold 1,177 head on Wednesday. Compared to the previous auction, feeder cattle sold unevenly steady on calves and yearlings. Benchmark steers averaging 755 lbs. sold from $327.50-337.50 and averaged $337.04. — Anna Miller Fortozo, WLJ managing editor
