Live cattle futures found gains over the week. The October contract gained $2.83 to close at $183.65, and the December contract gained $2.70 to close at $187.50.
Cash trade over the week was slow to get started. Through Thursday afternoon, only about 16,000 head sold. Live steers sold from $179-184, averaging $182.69, and dressed steers sold from $286-288, averaging $287.90.
“Given how quiet the market is at this point, it’s seeming like trade could wait to develop until Friday unless packers show better interest and offer up steady bids from the get-go,” wrote ShayLe Stewart, DTN livestock analyst, in her Thursday midday comments.
Cash trade for the week ending Sept. 3 totaled 68,750 head. Live steers averaged $182.81, and dressed steers averaged $290.33.
The national weekly direct beef type price distribution for the week of Aug. 28 to Sept. 4 was the following on a live basis:
• Negotiated purchases: $182.52.
• Formula net purchases: $186.22.
• Forward contract net purchases: $178.06.
• Negotiated grid net purchases: $185.25.
On a dressed basis:
• Negotiated purchases: $290.90.
• Formula net purchases: $292.06.
• Forward contract net purchases: $277.13.
• Negotiated grid net purchases: $298.07.
“In the real world, cattle feeders sold 68k head of negotiated fed cattle for two consecutive weeks,” Cassie Fish, market analyst, wrote in The Beef on Wednesday. “The difference today is packers are black at least $100/head and adding harvest days is appealing. Estimates for this week’s holiday-shortened slaughter are 570k to 585k head, all depending on how many plants run Saturday.”
Slaughter through Thursday was projected at 383,000 head, down about 100,000 head from a week earlier due to the short kill week. Total slaughter for a week earlier is estimated at 629,000 head. Actual slaughter for the week ending Aug. 26 was 626,595 head. The average dressed steer weight was 906 lbs., up 1 lb. from the prior week.
Boxed beef prices were several dollars lower. The Choice and Select cutouts each lost about $3 to close at $311.66 and $286.17, respectively.
Feeder cattle
Feeder futures closed several dollars higher. The September contract gained over $2 to close at $255.57, and the October contract gained $2.85 to close at $258.87.
The CME Feeder Cattle Index gained about 40 cents to close at $249.33.
Corn futures traded mostly sideways. The September contract gained 9 cents to close at $4.70, and the December contract gained 8 cents to close at $4.86.
“So long as this relationship continues (supportive live cattle market, steady corn prices), the feeder cattle complex should have absolutely no issue maintaining these levels,” Stewart said. “And if the cash cattle market sees steady to somewhat higher trade, then a bold move may even be in the works.”
Several markets did not host a sale due to the Labor Day holiday.
Kansas: Winter Livestock in Dodge City sold 1,009 head on Wednesday. Compared to the week prior, there were not enough feeder steers and heifers for a market test, but a lower trend was noted. Benchmark steers averaging 725 lbs. sold from $246-248.25, averaging $247.08.
Nebraska: Bassett Livestock Auction in Bassett sold 3,450 head on Wednesday. There were no comparable offerings from the sale held two weeks prior. Benchmark steers averaging 754 lbs. sold for $269.
New Mexico: Roswell Livestock Auction in Roswell sold 831 head on Wednesday. Compared to the last sale in August, steer calves 350-450 lbs. sold steady to $3 lower, 450-500 lbs. sold $7 higher and 500-600 lbs. sold $17 lower. Feeder steers 600-700 lbs. sold $8-17 lower, and 700-750 lbs. sold steady. Heifer calves 350-400 lbs. sold steady to $1 lower, and 400-500 lbs. sold $6 lower. Feeder heifers had insufficient numbers to compare. Benchmark steers averaging 755 lbs. sold from $222-229, averaging $227.13.
Oklahoma: OKC West in El Reno sold 1,800 head Tuesday. Compared to the last auction, steer and heifer calves that were weaned sold $2-3 lower. The bulk of the supply was unweaned or short-weaned bawling calves. A group of steers averaging 685 lbs. sold for $257.
Wyoming: Torrington Livestock in Torrington sold 2,726 head on Wednesday. Compared to the week prior, yearling steers traded $2-4 higher on comparable trades and yearling heifers sold mostly steady. Benchmark steers averaging 762 lbs. sold from $254-262, averaging $258.34. — Anna Miller, WLJ managing editor
