Outside economic pressures and uncertainty weighed heavily on the cattle complex, pushing live and feeder cattle prices lower. Cash trade was steady in the South and Nebraska. Dressed steers sold steady to $1 lower than last week’s weighted average.
“If you’ve paid the market any attention over the last three days, you’ve witnessed what feels like a true daytime nightmare,” ShayLe Stewart, DTN livestock analyst, wrote in Wednesday’s Call the Market column. “Just as the cattle market was turning the corner after Labor Day and setting its eyes on higher prices heading into fall, the continued interest rate hikes—that are being imposed to settle the nation’s untamed inflation—(have) sent the commodity market crashing lower, affecting both live cattle and feeder cattle contracts.”
Live cattle futures were lower, with the October contract down 73 cents to $144.12 and the December contract down $1.58 to $147.77.
“December live cattle has fallen for 6 straight trading sessions and lost $5.85/cwt since September 20th,” the Daily Livestock Report wrote on Thursday. “Worth noting, September 20th’s high was $152.22, just shy of the highest trading day under this contract, $152.37 on April 22nd. The December contract has traded in about a $10 range in the last four months, hitting a low point of $142.02 in the end of May and seeing the last high point as the September 20th value.”
Cash trade through Thursday was over 84,000 head. Live steers sold between $143-147, averaging $145.07. Dressed steers sold from $225.60-233 and averaged $229.42.
Trade developed in the South at $143, steady with the prior week. In Nebraska, cash trade was steady at $144-145, and dressed purchases traded steady to $4 lower at $228, with a few up to $233.
Cash trade for the week ending Sept. 25 totaled 116,546 head. Live steers averaged $145.09, and dressed steers averaged $228.90.
“Negotiated volume last week was an encouraging indication of packer demand, but this market remains spooked by outside market concerns and is vulnerable to more noncommercial selling,” Todd Hultman, DTN lead analyst, wrote on Tuesday.
The national weekly direct beef type price distribution for the week of Sept. 19-26 was the following on a live basis:
• Negotiated purchases: $145.10.
• Formula net purchases: $145.25.
• Forward contract net purchases: $144.35.
• Negotiated grid net purchases: $144.48.
On a dressed basis:
• Negotiated purchases: $228.98.
• Formula net purchases: $229.06.
• Forward contract net purchases: $226.74.
• Negotiated grid net purchases: $231.26.
Slaughter through Thursday was expected to be 507,000 head, 2,000 below the prior week.
Actual slaughter for the week ending Sept. 17 was 672,780 head. Dressed steer weights were 918 lbs.
Boxed beef prices were lower, with the Choice cutout down $2.32 to $246.08 and the Select cutout down $2.44 to $219.78.
The Daily Livestock Report stated that the Choice-Select spread had been steadily widening since March, except for a slight dip in August.
“This year, both grades of beef are seeing falling prices relative to where they were in March. Choice boxed beef has fallen 1.4% from mid-March to last week, while Select boxed beef has fallen 9%, creating a similar effect on the Choice-Select spread as last year,” the Daily Livestock Report wrote.
They continued to say the percentage of carcasses grading Choice has been below a year ago for the last five weeks, with the largest decline down 1.5% from last year.
Feeder cattle
Feeder cattle followed in live cattle’s hoofsteps, closing lower, with the September contract down $2.23 to $175.97 and the October contract down 65 cents to $177.32. The CME Feeder Cattle Index was down $3.81 to $175.94.
“As September looks at its final trading days of the month, cow-calf producers who have yet to sell their calves are scratching their heads, wondering when this pressure will ease and how much more it’s going to cost the market in the meantime,” Stewart wrote on Wednesday.
Corn contracts closed lower, with the December contract down 19 cents to $6.69 and the March contract down 17 cents to $6.76.
Colorado: Winter Livestock in La Junta sold 2,448 head Tuesday. Compared to the last auction, yearling feeder steers sold steady to $2 higher, and feeder heifers were steady from two weeks ago. Steer and heifer calves sold $3-5 lower in a light test. Benchmark steers averaging 726 lbs. sold between $167-176, averaging $173.30.
Kansas: Winter Livestock in Dodge City sold 2,989 head Wednesday. Compared to the previous auction, feeder steers 700-900 lbs. sold unevenly steady. Steer and heifer calves 400-700 lbs. sold $8-10 lower. Benchmark steers averaging 790 lbs. sold between $172.10-178, averaging $175.47.
Missouri: Joplin Regional Stockyards in Carthage sold 5,858 head Monday. Compared to the last auction, feeder steers under 600 lbs. traded $9-15 lower, with heavier weights $2-8 lower. Feeder heifers traded $3-6 lower. Benchmark steers averaging 719 lbs. sold between $172-178 and averaged $175.42.
Nebraska: Tri-State Livestock in McCook sold 2,030 head Monday. Compared to the last auction, steers were steady to $10 lower, and heifers were steady to $12 higher. A group of steers averaging 716 lbs. sold for $185.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 6,794 head Monday.
Compared to the previous auction, feeder steers sold steady, except for 6 weights and a few 8 weights, which were $3-6 lower. Feeder heifers sold $2-6 lower. Steer and heifer calves traded $10-15 lower. Benchmark steers averaging 727 lbs. sold between $170-176.50, averaging $173.69.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 1,699 head Monday. Compared to the previous auction, feeder steers and heifers sold with lower undertones. The biggest demand continues to be for black-hided cattle, creating wide price gaps. Benchmark steers averaging 716 lbs. sold between $174-188, averaging $180.93.
Texas: Lonestar Stockyards in Wildorado sold 1,343 head Tuesday. Compared to the previous auction, feeder steers and heifers traded mostly $2-4 lower. Steer and heifer calves traded mostly $4-8 lower, with sharper declines noted on lighter weight calves. Benchmark steers averaging 779 lbs. sold between $169-171 and averaged $170.48.
Wyoming: Winter Livestock in Riverton sold 1,817 head Tuesday. Compared to the previous auction, yearling steers sold $4-5 higher, and heifers sold mostly steady. Feeder calves sold with higher overtones. A group of steers averaging 720 lbs. sold between $182-190, averaging $188.22. — Charles Wallace, WLJ editor
