Cattle futures climbed to contract highs this past week as boxed beef prices turned higher and cash movement remained scarce.
Live cattle futures gained several dollars over the week. The October contract gained about $5 to close at $235.02, and the December contract gained about $6 to close at $239.90.
Cash trade through Thursday totaled only about 3,000 head. Live steers sold from $230-231, and dressed steers sold for $358.
“Steady bids currently are insufficient to acquire cattle and asking prices are dollars higher. Show lists are larger in Texas and Nebraska while Kansas is sharply lower,” the Cattle Report wrote on Thursday. “It will be doubtful for cash prices to sell discount to futures in a delivery month.”
Cash trade for the week ending Oct. 5 totaled 53,446 head. Live steers averaged $230.69, and dressed steers averaged $359.81.
The national weekly direct beef type price distribution for the week of Sept. 29 to Oct. 6 was the following on a live basis:
• Negotiated purchases: $230.82.
• Formula net purchases: $239.68.
• Forward contract net purchases: $206.14.
• Negotiated grid net purchases: $249.99.
On a dressed basis:
• Negotiated purchases: $359.80.
• Formula net purchases: $378.66.
• Forward contract net purchases: $319.19.
• Negotiated grid net purchases: $383.58.
Slaughter through Thursday totaled 446,000 head, compared to 458,000 head a week earlier.
USDA National Agriculture Statistics Service data is unavailable while the government is shut down, so there is no data available for expected total slaughter for the week earlier or actual slaughter for two weeks earlier.
Boxed beef prices traded modestly higher over the week. The Choice cutout gained about $2 to close at $365.22, and the Select cutout gained about a dollar to close at $344.33.
“Boxed beef prices have risen all week after making their seasonal low October 3. Today’s Choice quote was $366.66/cwt, up about $6 in four days,” Cassie Fish, market analyst, wrote in The Beef on Thursday.
She continued, “Because of the futures and boxed beef rally, cattle feeders are pricing cattle higher and trade in the country is non-existent. Packers have been reluctant to bid and are loathe to pay up given continued red margins.”
Feeder cattle
“On Wednesday afternoon, the market was pleased to successfully reach new contract highs, which has seemed to fuel the market’s ambition this morning as traders have restlessly continued to push it higher and higher,” said ShayLe Stewart, DTN livestock analyst, in her Thursday midday comments.
Feeder cattle futures skyrocketed higher over the week. The October contract gained about $20 close at $374.02, and the November contract gained about $22 to close at $374.05.
“Yes, seeing stronger boxed beef prices is helping, and if the fed cash cattle market were to trade steady to somewhat higher, that would be positive as well, but time will tell if that support develops or not,” Stewart said.
The CME Feeder Cattle Index lost about $2 to close at $365.51.
Corn futures traded sideways. The December contract lost 3 cents to close at $4.18, and the March contract lost 4 cents to close at $4.34.
Colorado: Winter Livestock in La Junta sold 2,163 head on Tuesday. Compared to the previous auction, feeder steers sold mostly $5-7 higher, with instances of sharply higher across all weight classes. Feeder heifers sold mostly $8-9 higher, with instances of sharply higher across all weight classes. Benchmark steers averaging 773 lbs. sold for $355-365, averaging $360.30.
Missouri: Joplin Regional Stockyards in Carthage sold 5,541 head on Monday. Compared to a week earlier, feeder steers generally sold steady to $15 higher, except five-weights sold $10-25 higher and four-weights sold $5-15 lower. Feeder heifers sold unevenly across various weight ranges from $8 higher to $8 lower. Benchmark steers averaging 772 lbs. sold from $371-403, averaging $394.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 5,500 head on Monday. Compared to a week earlier, feeder steers sold mostly steady and feeder heifers over 700 lbs. sold steady to $4 higher, while under 700 lbs. sold $1-4 lower. Steer calves sold $10-20 higher, and heifer calves sold mostly steady. Benchmark steers averaging 735 lbs. and sold from $366-388, averaging $376.31.
South Dakota: Sioux Falls Regional in Worthing sold 893 head on Monday. Compared to a week earlier, yearling steers were not well compared but yearling heifers sold with lower undertones. A small group of benchmark steers averaging 768 lbs. sold for $370. — Anna Miller Fortozo, WLJ managing editor
