While numbers were favorable on the board, cash trade and slaughter have remained sluggish.
Live cattle futures found momentum over the week. The October contract gained about $1.80 to close at $185.47, and the December contract gained $2.85 to close at $190.35.
“The longer today’s trading session has continued, the stronger futures have become, even the laggard October LC made a new contract high today,” wrote Cassie Fish, market analyst, in the Beef on Thursday. “All cattle futures contracts are now heartily premium to the cash market. Last week’s 5-area average of $182.28 was the third lowest price since Memorial Day.”
Cash trade through Thursday afternoon totaled about 13,000 head. Live steers sold from $182-186, and dressed steers sold from $286-290.
“Still, no substantial cash cattle trade has developed, and it’s looking like the bulk of the week’s business could even be delayed until Friday at this point given that little interest has developed,” ShayLe Stewart, DTN livestock analyst, wrote in her Thursday noon report.
Cash trade through Sept. 10 totaled 56,819 head. Live steers averaged $182.59, and dressed steers averaged $289.72.
Slaughter through Thursday totaled 502,000 head, compared to 511,000 head a year earlier. Total slaughter for a week earlier is projected at 559,000 head. Actual slaughter through the week ending Sept. 2 was 630,514 head. The average dressed steer weight was 908 lbs., up 2 lbs. from the prior week.
“The packer may be the most aware of what’s to come as he continues to exhibit tremendous discipline keeping throughput screwed down tight,” Fish wrote on Monday. “Last week’s holiday-shorted slaughter was 559k head, the smallest Labor Day kill since 2016. The estimate for this week is 620k. Packers are running very few Saturdays, and this will not change for a long time.”
Boxed beef prices dropped several dollars on the Choice cutout, but stayed mostly steady for Select. The Choice cutout lost $5.29 to close at $306.37, and the Select cutout gained 69 cents to close at $286.86.
Feeder cattle
Feeder futures traded steady to higher over the week. The September contract lost 40 cents to close at $255.17, and the October contract gained $3 to close at $261.87.
The CME Feeder Cattle Index gained $1.88 to close at $251.21.
Corn futures moved lower. The September contract lost 8 cents to close at $4.62, and the December contract lost 6 cents to close at $4.80.
“Auction receipts from south Texas to Florida have pushed calf sales into earlier marketing periods as hot dry temperatures make pasture conditions stressful to cattle and people,” wrote the Cattle Report on Thursday. “Larger movements now mean fewer movements later this year.”
Missouri: Joplin Regional Stockyards in Carthage sold 8,000 head on Monday. Compared to the last sale held two weeks earlier, feeder steers and heifers sold steady to $3 higher. Benchmark steers averaging 759 lbs. sold from $250-266, averaging $257.51.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 11,200 head on Monday. Compared to the last sale held two weeks earlier, feeder steers sold $1-4 higher. Feeder heifers sold mostly steady to $3 lower. Steer calves sold $1-3 lower. Heifer calves sold $2-5 lower.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 2,197 head Monday. Compared to the last auction, feeder steers 650-750 lbs. and 800-950 lbs. sold $2-4 higher, while other weights were not significantly compared. Feeder heifers 450-550 lbs., 700-750 lbs. and 850-900 lbs. sold $3-6 higher. Benchmark steers averaging 778 lbs. sold between $237.50-248.50 and averaged $245.52. — Anna Miller, WLJ managing editor
