The market traded generally steady over the week but ultimately closed lower on the board. Packers continue to buy cattle though, with negotiated trade trending steady to slightly higher over the week.
Live cattle futures were mostly steady but ultimately closed lower over the week. The October contract lost 77 cents to close at $144.85, and the December contract lost $1.97 to close at $149.35.
Through Thursday morning, cash trade was about 60,000 head. Live steers sold from $142-147, averaging $143.75. Dressed steers sold between $226-232, averaging $228.90.
“The past few years (have) seen an uncoupling of the relationship between dressed prices and live prices and that trend may continue for the next few years,” the Cattle Report wrote. “The Covid markets of the past three years were characterized by sharply rising boxed beef prices that seemed unrelated to live cash prices for cattle that barely held steady and sometimes fell. As fed numbers dwindle the reverse will be the case as drops in the box prices fail to stop the increases in live cash prices for cattle.”
Cash trade for the week ending Sept. 19 totaled 77,475 head. Live steers averaged $143.64, and dressed steers averaged $226.86.
“Packers actually paid up a smidge last week, as 5-area average steer prices gained 0.71 cents from the prior week and likely bottomed not only for September but for weeks,” wrote Cassie Fish, market analyst, in The Beef.
The national weekly direct beef type price distribution for the week of Sept. 12 to Sept. 19 was the following on a live basis:
• Negotiated purchases: $143.49.
• Formula net purchases: $144.90.
• Forward contract net purchases: $145.
• Negotiated grid net purchases: $144.36.
On a dressed basis:
• Negotiated purchases: $227.05.
• Formula net purchases: $228.45.
• Forward contract net purchases: $227.28.
• Negotiated grid net purchases: $232.41.
Slaughter through Thursday was estimated at 509,000 head, a few thousand head more than the week prior. Slaughter through Sept. 15 is projected at 667,000 head. Actual slaughter for the week ending Sept. 10 was 606,027 head. Dressed steer weights were 914 lbs.
Boxed beef prices were down over the week. The Choice cutout lost about $5 to close at $248.40, and the Select cutout lost $8 to close at $222.22.
Analysts polled ahead of USDA’s upcoming Cattle on Feed report gave their pre-report estimates, showing the on-feed numbers to be between 99-100.5%.
“This week’s cattle on feed report for September 1 will likely begin a long string of lower numbers on feed when compared to the prior year,” the Cattle Report wrote. “Placements will be uneven with larger placements in drought ridden Texas and other regions before the recent rains and lower placements elsewhere. September placement numbers will begin the sharp placement declines that will continue through year-end.”
Feeder cattle
Feeder cattle futures were lower over the week. The September contract lost $1.15 to close at $178.20, and the October contract lost $2.95 to close at $177.97.
The CME Feeder Cattle Index gained $1.24 to close at $179.75.
Corn has been trading mostly steady; the December contract gained 6 cents to close at $6.88, and the March contract gained 12 cents to close at $6.93.
“Superior Livestock Auction’s online sale on Thursday attracted active bidding, and many representative lots of 600- or 700-lb steers easily fetched around $200 per cwt,” wrote Elaine Kub, DTN contributing analyst. “Salebarns across the countryside are also noticing active markets with lots of buyers and good demand, although prices have either stayed steady or slipped as much as $3 week over week.”
Colorado: Winter Livestock in La Junta sold 664 head on Tuesday. Compared to a week earlier, steer calves under 500 lbs. sold $3-5 higher, 500-600 lbs. sold $2-3 higher and over 600 lbs. sold steady to $1 higher. Yearling feeder steers over 700 lbs. sold steady to $1 higher. Heifer calves sold steady to $2 higher, and yearling heifers were scarce. Unweaned benchmark steers averaging 760 lbs. averaged $170.
Iowa: Russell Livestock in Russell sold 3,103 head Monday. This was a special cattle sale, so a trend could not be established, but strong demand was noted. Benchmark steers averaging 771 lbs. sold between $177-191.35 and averaged $184.61.
Kansas: Winter Livestock in Dodge City sold 3,398 head Wednesday. Compared to the last auction, steer calves sold $5-10 higher, and yearling steers sold $2-6 higher. Feeder heifers sold $1-5 higher. Benchmark steers averaging 790 lbs. sold between $170-178, averaging $174.60.
Missouri: Joplin Regional Stockyards in Carthage sold 5,125 head on Monday. Compared to a week earlier, feeder steers sold steady to $3 higher. Feeder heifers under 500 lbs. sold $2-6 lower, with heavier weights trading steady. Benchmark steers averaging 782 lbs. sold between $181-183, averaging $181.97.
Nebraska: Tri-State Livestock in McCook sold 1,620 head Monday. Compared to the previous auction, 400 lb. steers sold steady, and steers over 500 lbs. sold $4-10 lower. Heifers were steady to $8 lower. Most offerings were bawling calves. A group of steers averaging 515 lbs. sold between $205-221, averaging $211.78.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 6,647 head Monday. Compared to the last auction, feeder steers sold mostly $3-5 lower, with instances of $7 lower. Feeder heifers were steady in a light test. Steer calves traded $2-6 higher, and heifer calves were mostly steady. Benchmark steers averaging 778 lbs. sold between $167.50-173 and averaged $170.16.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 1,798 head Monday. Compared to the last auction, there was a lighter offering this week, making for limited price comparisons on both steers and heifers. Benchmark steers averaging 758 lbs. sold for $208.50.
Wyoming: Torrington Livestock in Torrington sold 3,302 head on Wednesday. Compared to a week earlier, feeder steers traded mostly steady on comparable trades. Feeder heifers also traded mostly steady, with a few instances of $2 higher on 800 lb. heifers. — Anna Miller, WLJ managing editor
