(This report contains information available as of Wednesday, Aug. 26, due to an earlier WLJ press time.)
The cattle market was influenced by headlines over the week, including the news that President Donald Trump planned to increase beef imports, as well as the Mexican border reopening at an Arizona port.
Live cattle futures traded lower, down about $5 on the August contract to $218.47 and down about $8 on the October contract to $210.77.
Cash trade for the week through Wednesday totaled about 40,000 head. Live steers sold from $217-220, and dressed steers sold from $342-355.
“With packers now possessing the lion’s share of the market’s leverage, fed cash cattle prices will likely continue to scale lower for the unforeseeable future; uncertainty surrounding the border reopening causes market anxiousness as well,” wrote ShayLe Stewart, DTN livestock analyst, in her Wednesday midday comments.
Cash trade for the week ending Aug. 23 totaled 79,292 head. Live steers averaged $224.97, and dressed steers averaged $355.49.
Slaughter through Wednesday totaled about 310,000 head, compared to 309,000 head a week earlier. Total slaughter for a week earlier is estimated at 523,000 head. Actual slaughter for two weeks earlier was not available by WLJ press time.
“This past week the slaughter volume increased as packers took the opportunity to make hay while the sun shines. Profits have returned to the packers helped by a reduction in slaughter capacities,” the Cattle Report wrote on Wednesday.
Boxed beef prices closed modestly lower over the week. The Choice cutout lost about $4 to close at $385.13, and the Select cutout lost about a dollar to close at $362.68.
Lean beef trim contracts have seen little movement. The 50% lean trim August contract was unchanged at $161, and the September contract was also unchanged at $151. The 90% lean beef trim August contract was unchanged at $449, and the September contract was also unchanged at $445.
Feeder cattle
Feeder cattle futures saw tremendous losses over the week, with the August contract down $14 to $332.75 and the September contract down $20 to $319.
The CME Feeder Cattle Index gained almost $7 to close at $335.46.
Corn futures closed higher, up 36 cents on the September contract to $5.14 and up 33 cents on the December contract to $5.36.
“Thus far this week feeder cattle prices have been mostly lower in sale barns across the country, and the light test we’ve seen in the fed cash cattle market has been lower too—both of which pressure the market to trade lower,” Stewart said.
Missouri: Joplin Regional Stockyards in Carthage sold 4,327 head on Monday. Compared to a week earlier, feeder steers under 750 lbs. sold $5-15 lower. Heavier weights sold from $5 lower to $6 higher. Feeder heifers under 700 lbs. sold $8-20 lower. Heavier weights sold $2-6 lower. Benchmark steers averaging 767 lbs. sold from $337-350, averaging $345.33.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 3,324 head on Monday. Compared to the last sale, feeder steers sold $4-10 lower, with instances of $15 lower on cattle over 900 lbs. Feeder heifers sold $2-8 lower. Steer and heifer calves sold $5-15 lower. Benchmark steers averaging 782 lbs. sold from $330-340, averaging $335.96.
South Dakota: Sioux Falls Regional in Worthing sold 2,368 head on Monday. Compared to a week earlier, feeder steers sold $5-10 lower and heifers sold steady to $5 lower. Benchmark steers averaging 801 lbs. sold from $320-332, averaging $327.83.
Texas: Giddings Livestock in Giddings sold 1,146 head on Monday. Compared to the last auction, feeder steers and heifers sold $15-25 lower. Benchmark steers averaging 717 lbs. sold from $300-318, averaging $308.11.
Wyoming: Torrington Livestock in Torrington sold 1,401 head on Wednesday. Compared to a week earlier, feeder steers and heifers traded sharply lower. Benchmark steers averaging 774 lbs. sold for $352. — Anna Miller Fortozo, WLJ managing editor
