Futures closed lowered over the week, presumably pressured by speculation about the conditional approval of a New World screwworm prevention and treatment drug.
Live cattle futures closed lower over the week. The October contract lost about $1.50 to close at $230.52, and the December contract lost about a dollar to close at $233.47.
“The announcement yesterday that Zoetis received a conditional approval for prevention and treatment of New World screwworm in cattle is primarily being blamed for the sell-off in CME cattle futures today, led by a +500 point drop in feeder cattle,” wrote Cassie Fish, market analyst, in The Beef on Thursday.
The thought process, Fish explained, is that drug approval could lead to the border between Mexico and the U.S. opening soon to the import of feeder cattle.
“However, there is no indication from any officials that this assumption is based in truth,” she said.
Cash trade through Thursday totaled about 28,000 head. Live steers sold from $227-231, and dressed steers sold from $353-360.
Cash trade for the week ending Sept. 28 totaled 56,622 head. Live steers averaged $232.78, and dressed steers averaged $365.09.
Slaughter through Thursday totaled 461,000 head, compared to 466,000 head a week earlier. Total slaughter for the week earlier is estimated at 555,000 head. USDA did not report actual slaughter numbers for the week ending Sept. 20 because data from the National Agricultural Statistics Service was unavailable during the government shutdown.
Boxed beef prices continue to trade lower over the weeks. The Choice cutout lost about $8 to close at $363.22, and the Select cutout lost about $10 to close at $343.40.
“Right now, the concern that the market is near a top seems to be greater than any concern of the fact that the tightest fed cattle supplies of the cycle are yet to come in 2026,” Fish said. “Truth is, there is no way to know today if the concern is warranted or not.”
Feeder cattle
“Following in the live cattle market’s footsteps, the feeder cattle complex is also trading lower as traders continue to struggle to find enough support to justify trading higher,” wrote ShayLe Stewart, DTN livestock analyst, in her Thursday midday comments.
Feeder cattle futures traded steady to lower over the week. The October contract gained 25 cents to close at $354.30, and the November contract lost about $5 to close at $352.40.
“Adding only more kindling to the feeder cattle market’s reasons to trade lower, the market did close lower Wednesday afternoon after traders decided they didn’t possess enough support to be edging up against the market’s resistance thresholds,” Stewart said.
The CME Feeder Cattle Index closed higher over the week, gaining about $6 to close at $367.61.
Corn futures continue to trade sideways. The December contract lost 4 cents to close at $4.21, and the March contract also lost 4 cents to close at $4.38.
Missouri: Joplin Regional Stockyards in Carthage sold 8,500 head on Monday. Compared to a week earlier, feeder steers sold steady to $10 lower and feeder heifers sold from $5 lower to $5 higher. Benchmark steers averaging 774 lbs. sold from $364-389, averaging $375.99.
Nebraska: Tri-State Livestock in McCook sold 3,772 head on Monday. Compared to the previous auction, steers sold $4-15 lower and heifers traded $11-15 lower. Benchmark steers averaging 786 lbs. sold for $370.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 5,000 head on Monday. Compared to a week earlier, feeder steers and heifers sold steady to $3 lower in a very light test. Steer and heifer calves sold $5-10 lower on lesser quality. Benchmark steers averaging 773 lbs. sold from $355-369.50, averaging $364.77.
South Dakota: Sioux Falls Regional in Worthing sold 3,056 head on Monday. Compared to a week earlier, there was a much larger offering of feeder steers and heifers. Steers were not well compared, and heifers sold unevenly steady. A group of benchmark steers averaging 764 lbs. sold for $380. — Anna Miller Fortozo, WLJ managing editor
