Just ahead of Labor Day weekend, the cattle markets saw modest fluctuations over the week, with minimal cash trade and slower-than-expected slaughter volumes.
Live cattle futures found some small gains over the week, up about $2 on the August contract to $184.87 and up about $1 to $177.90 on the October contract.
“The live cattle complex is stuck tapping its toe, waiting for the cash cattle market to give it the fundamental support it needs… or not,” wrote ShayLe Stewart, DTN livestock analyst, in her Thursday midday comments.
Cash trade through Thursday afternoon was about 25,000 head. Live steers sold from $181-184, and dressed steers sold from $288-292.
“Packers have purchased a lot of cattle with time and even though this week’s slaughter is expected to increase a bit, packers are buying for next week’s holiday-shortened work week,” wrote Cassie Fish, market analyst, in The Beef on Tuesday.
Cash trade through Aug. 25 totaled about 55,000 head. Live steers averaged $185.69, and dressed steers averaged $294.21.
Slaughter through Thursday was 477,000 head, about 7,000 head less than the same time a week earlier. Projected total slaughter for a week earlier is 608,000 head. Actual slaughter for the week ending Aug. 17 was 605,086 head. The average dressed steer weight was 931 lbs., 6 lbs. above the prior week.
The Cattle Report wrote on Thursday: “Should increasing slaughter volumes be accompanied by stabilization in the box market by improving demand during the fall months, the entire industry will benefit.”
Boxed beef prices fell ahead of the Labor Day holiday weekend. The Choice cutout lost about $7 to close at $308.66, and the Select cutout lost about $6 to close at $296.19.
“Next week begins September and it is seasonally a weak month for all of the markets mentioned above,” Fish wrote on Thursday.
“Certainly the consumer has seen retail prices increase all of 2024,” she continued. “The gains in packer margins will not increase thanks to lower boxed beef values, even with lower cattle costs. And this week’s harvest could be sub-610k.” Slaughter was expected to be 610,000-615,000 head over the week, but processing plant issues over the week may keep numbers lower.
Feeder cattle
Feeder cattle futures traded slightly higher, with the August contract up about $1 to $243.17 and the September contract also up about $1 to $239.50.
“Traders seem to be stuck waiting to see what develops in the fed cash cattle market—which hasn’t seen any trade develop just yet,” Stewart wrote on Thursday.
The CME Feeder Cattle Index lost 3 cents to close at $242.64.
Corn futures traded mostly sideways, unchanged on the September contract at $3.71 and up 3 cents on the December contract at $3.96.
Iowa: Russell Livestock in Russell, IA, sold 3,165 on Monday. There was no recent sale to compare to. Benchmark steers averaging 775 lbs. sold from $255-259.85, averaging $258.99.
Missouri: Joplin Regional Stockyards in Carthage sold 6,602 head on Monday. Compared to a week earlier, feeder steers under 675 lbs. sold $9-18 lower with heavier weights selling $2-8 lower. Feeder heifers under 650 lbs. sold $8-12 lower with heavier weights selling $2-6 lower. Benchmark steers averaging 774 lbs. sold from $244-247.50, averaging $245.73.
Oklahoma: Oklahoma National Stockyards sold 6,000 head on Monday. Compared to a week earlier, at the mid-session, steers sold steady to $2 lower and heifers sold unevenly steady. Benchmark steers averaging 780 lbs. sold from $237-248, averaging $243.24.
South Dakota: Sioux Falls Regional Cattle in Worthing sold 3,752 head on Monday. Compared to the last auction two weeks ago, yearling steers 950 lbs. sold $2 lower. Heifers 700 lbs. sold $10 lower, 800 lbs. traded $1-2 higher, 850-900 lbs. were $4-7 lower and 950 lbs. sold $1 lower. Benchmark steers averaging 726 lbs. sold between $253-254, averaging $253.59. — Anna Miller, WLJ managing editor
