The market opened the week on a higher note following a bullish Cattle on Feed report on Friday, but trading was more volatile over the week.
Markets reacted also to the news of the latest detection of New World screwworm, waiting to see USDA’s response after it teased a “significant plan” on Sunday to help rebuild the American cattle supply. “This is only the beginning with many more announcements coming this week as USDA restores American strength, protects food security, and supports America’s ranchers and farmers,” USDA said.
Live cattle futures traded mostly sideways over the week. The October contract lost 32 cents to close at $232.05, and the December contract gained 15 cents to close at $234.30.
Cash trade through Thursday totaled about 30,000 head. Live steers sold from $231-237, and dressed steers sold from $360-365.
Cash trade for the week ending Sept. 14 totaled 56,656 head. Live steers averaged $237.39, and dressed steers averaged $370.82.
Slaughter through Thursday totaled about 466,000 head, compared to 460,000 head a week earlier. Total slaughter for a week earlier is estimated at 552,000 head. Actual slaughter for the week ending Sept. 13 was 573,378 head. The average steer dressed weight was 959 lbs., up 1 lb. from the previous week.
Boxed beef prices continued their seasonal decline. The Choice cutout lost nearly $14 to close at $371.97, and the Select cutout lost nearly $8 to close at $353.45.
“Multiple packers have been performing plant maintenance as of late, which has curtailed their demand for cattle,” wrote Cassie Fish, market analyst, in The Beef on Thursday. “Plus, margins are red again after a brief improvement. Simply put, beef demand is seasonally slow.”
Feeder cattle
Feeder cattle futures closed several dollars higher over the week. The September contract gained more than $7 to close at $365.42, and the October contract gained more than $2 to close at $354.05.
The CME Feeder Cattle Index lost 5 cents to close at $361.31.
Corn futures traded mostly sideways. The December contract gained 2 cents to close at $4.25, and the March contract gained a penny to close at $4.42.
“Thankfully, demand has been incredibly strong this week in feeder cattle sales across the country, but this dip in the futures complex could shake buyers a bit,” said ShayLe Stewart, DTN livestock analyst, in her Thursday midday comments.
Iowa: Russell Livestock in Russell sold 2,528 head on Monday. Compared to the previous auction two weeks earlier, most lots of steers sold $7-10 higher. Bawling heifers under 500 lbs. sold with lower undertones on a limited supply. Heifers over 500 lbs. sold steady to $5 higher. Benchmark steers averaging 777 lbs. sold for $365-389, averaging $384.74.
Missouri: Joplin Regional Stockyards in Carthage sold 7,500 head on Monday. Compared to a week earlier, at the mid-session steers sold $5-20 higher and feeder heifers sold steady to $10 higher. Benchmark steers averaging 774 lbs. sold from $369-403, averaging $393.07.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 5,000 head on Monday. Compared to a week earlier, feeder steers sold steady to $5 higher than the previous week’s test. Feeder heifers sold $4-8 higher. Steer calves sold $10-20 higher, and heifer calves sold $15-25 higher. Benchmark steers averaging 767 lbs. sold from $340-378, averaging $369.83.
South Dakota: Sioux Falls Regional in Worthing sold 1,319 head on Monday. Compared to a week earlier, spring-born steers and heifer calves sold with sharply higher undertones. Yearling steers and heifers were too narrowly compared for a good comparison. Benchmark steers averaging 775 lbs. sold from $385-402.50, averaging $390.82.
Utah: Producers Livestock in Salina sold 1,344 head on Wednesday. Compared to the last auction, feeder steers sold unevenly steady, with those weighing under 500 lbs. selling sharply lower and those weighing over 500 lbs. selling sharply higher. Feeder heifers sold unevenly steady on calves and yearlings. Benchmark steers averaging 772 lbs. sold from $332.50-342.50, averaging $339.01. — Anna Miller Fortozo, WLJ managing editor
