Live cattle futures posted gains over the week, while cash trade held steady as feedlots aimed for higher prices.
Live cattle futures were several dollars higher. The October contract gained $4.25 to close at $184.10, and the December contract gained $3.70 to close at $184.82.
Cash trade over the week through Thursday afternoon totaled about 20,000 head. Live steers sold from $184-186, and dressed steers sold from $290-295.
“Feedlot managers are again going to aim for higher prices and would likely be OK with steady money as last week’s market traded $2 to $4 higher,” wrote ShayLe Stewart, DTN livestock analyst, in her Tuesday midday comments. “But packers are going to be hard to negotiate with as their main aim is to keep feedlot managers from gaining any leverage.”
Cash trade through Sept. 22 totaled 86,956 head. Live steers averaged $184.22, and dressed steers averaged $290.49.
Slaughter through Thursday was about 487,000 head, a few thousand head short of a week earlier. Total slaughter for a week earlier is projected at 610,000 head. Actual slaughter for the week ending Sept. 14 was 623,990 head. The average steer dressed weight was 945 lbs., 4 lbs. above the prior week.
“Steer carcass weights have increased 34 pounds since bottoming 11 weeks ago in June, a greater acceleration than normal,” wrote Cassie Fish, market analyst, in The Beef on Thursday. “Weights typically don’t top until November or December and this record-setting pace portends levels in Q4 never before contemplated as the industry pushes the envelope further and further.”
Boxed beef prices saw more declines over the week. The Choice cutout lost $3.19 to close at $296.37, and the Select cutout lost $5.89 to close at $282.37.
“It is disappointing to see midday boxed beef prices lower as there seems to be some consumer pullback from the meat counter, because if anything, from a supply and demand perspective, prices should be a tick higher this week as packers have reduced throughput which limits some supply and theoretically should push prices higher,” Stewart wrote on Thursday.
Feeder cattle
Feeder cattle futures traded mostly steady and saw some slight gains over the week. The September contract gained 13 cents to close at $245.40, and the October contract gained $3.15 to close at $246.92.
“Traders seem to be pumping the brakes until more fundamental support surfaces from the fed cash cattle market,” Stewart said.
The CME Feeder Cattle Index lost 22 cents to close at $244.20.
Corn futures were higher, with the December contract up 8 cents to $4.13 and the March contract up 7 cents to $4.31.
Colorado: Winter Livestock in La Junta sold 2,976 head on Tuesday. Compared to the last auction, feeder steers sold $1-34 higher across all weight classes. Feeder heifers sold mostly $3-29 across all weight classes. Benchmark steers averaging 788 lbs. sold for $235-247, averaging $245.33.
Missouri: Joplin Regional Stockyards in Carthage sold 5,042 head on Monday. Compared to a week earlier, feeder steers sold $2-8 higher and feeder heifers sold $5 lower to $8 higher. Benchmark steers averaging 773 lbs. sold from $240-255, averaging $247.76.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 6,500 head on Monday. Compared to a week earlier, at the mid-session, steers and heifers over 650 lbs. sold unevenly steady and steers and heifers under 650 lbs. sold $1-5 lower. Benchmark steers averaging 768 lbs. sold from $235.50-250.50, averaging $245.65.
South Dakota: Sioux Falls Regional in Worthing sold 3,054 head on Monday. Compared to the last auction, steers 850-900 lbs. sold $3-4 lower and 950 lbs. traded mostly $1-3 higher. Heifers 650 lbs. sold $8 higher, 750 lbs. traded $2 lower and 800-900 lbs. were mostly steady to $3 higher. Benchmark steers averaging 715 lbs. sold for $240-256, averaging $253.08. — Anna Miller, WLJ managing editor
