Cattle futures closed higher over the week, with both markets gaining several dollars as traders remained optimistic about the potential for steady to higher cash cattle prices.
Live cattle futures closed several dollars higher week over week. The October contract gained about $4 to close at $225.95, and the December contract gained about $4 to close at $227.25.
“More than anything, traders seem optimistic that there may be a chance that this week’s fed cash cattle market may be able to trade steady, if not a tick higher—time will tell,” wrote ShayLe Stewart, DTN livestock analyst, in her Thursday midday comments.
Cash trade through Thursday totaled under 5,000 head. Live steers sold for $220, and dressed steers sold from $345-355.
“With the board trading higher, it’s likely that feedlot managers will wait another day before they trade cattle in hopes of seeing prices trade stronger again this week,” Stewart said. “Asking prices are noted at $230 in Texas but are not established in the other feeding regions.”
Cash trade for the week ending Oct. 11 was 67,701 head. Live steers averaged $221.13, and dressed steers averaged $345.59.
Slaughter through Thursday totaled about 430,000 head, compared to 432,00 head a week earlier. Total slaughter for a week earlier is projected at 531,000 head. Actual slaughter for the week ending Oct. 3 was 547,798 head. The average steer dressed weight was 983 lbs., up 3 lbs. from the prior week.
“Plant attendance is normal and changes in weekly slaughter will be driven by supply and demand,” the Cattle Report wrote on Monday. “Processors have maintained profitability since July—the longest period during the past few years. The status for fed supplies will remain tight through year end especially in the South.”
Boxed beef prices traded lower over the week. The Choice cutout lost about a dollar to close at $373.98, and the Select cutout also lost about a dollar to close at $352.62.
The lean beef trim contracts traded mostly lower. The 50% lean beef trim October contract traded sideways at $88, and the 90% lean beef trim October contract traded $2 lower to $416.
The Intercontinental Exchange, owner of the New York Stock Exchange, recently announced it will begin offering livestock futures. By Dec. 7, the company plans to offer a physically delivered live cattle contract, along with a cash-settled live cattle contract, feeder cattle contract and hog contract. The new offerings will compete with the CME Group, which has been offering livestock contracts since the 1960s.
Feeder cattle
Feeder cattle futures also closed higher week over week. The October contract gained about $5 to close at $343.37, and the November contract gained about $7 to close at $341.95.
“As long as the live cattle contracts continue to trade higher, it’s likely that the feeder cattle contracts will, too,” Stewart said.
The CME Feeder Cattle Index gained nearly $5 to close at $342.64.
Corn futures traded lower. The December contract lost 22 cents to close at $4.78, and the March contract lost 21 cents to close at $4.91.
Iowa: Russell Livestock in Russell sold 1,955 head on Monday. Compared to the previous auction, steers under 600 lbs. sold evenly to $9 lower, while 600-650 lbs. and 750-850 lbs. sold $13-19 higher, and all others sold lower. Heifers under 700 lbs. sold mostly $6 higher, with some selling sharply higher, and heifers over 700 lbs. sold $8-26 higher. Benchmark steers averaging 772 lbs. sold from $345.75-366, averaging $354.03.
Missouri: Joplin Regional Stockyards in Carthage sold 7,000 head on Monday. Compared to a week earlier, feeder steers under 550 lbs. sold $5-10 lower while heavier weights sold $3-7 higher. Feeder heifers sold steady to $5 higher. Benchmark steers averaging 771 lbs. sold from $337-352, averaging $344.59.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 5,800 head on Monday. Compared to a week earlier, at the mid-session, feeder steers over 750 lbs. sold steady to $3 higher and under 750 lbs. sold $5-10 higher. Feeder heifers sold $2-7 higher. Steer calves sold $10-20 higher, and heifer calves over 500 lbs. sold $4-8 higher while under 500 lbs. sold $10-20 higher. Benchmark steers averaging 784 lbs. sold from $339-352, averaging $343.48.
South Dakota: Sioux Falls Regional in Worthing sold 1,665 head on Monday. Compared to the previous week, there were not enough comparable sales of feeder steers and heifers to make a good comparison. A group of benchmark steers averaging 681 lbs. sold for $370. — Anna Miller Fortozo, WLJ managing editor
