The market traded mostly sideways ahead of the three-day weekend. Boxed beef prices trended lower in advance of the grilling holiday, and slaughter volumes picked up in anticipation.
Live cattle futures traded sideways over the week. The August contract expired on Thursday and lost 13 cents to close at $179.72, and the October contract gained 10 cents to close at $180.82.
Cash trade through Thursday afternoon totaled about 45,000 head. Live steers sold from $178-185, averaging $181. Dressed steers sold from $288-294, averaging $290.
“With packers unable to buy a plethora of cattle in last week’s negotiated cash cattle trade, it’s likely that they’ll have to engaged in this week’s market more than they’d ideally like to,” wrote ShayLe Stewart, DTN livestock analyst, in her Thursday midday comments.
Cash trade for the week ending Aug. 27 totaled 68,899 head. Live steers averaged $183.26, and dressed steers averaged $293.01.
The national weekly direct beef type price distribution for the week of Aug. 21-28 was the following on a live basis:
• Negotiated purchases: $183.52.
• Formula net purchases: $186.77.
• Forward contract net purchases: $184.03.
• Negotiated grid net purchases: $185.27.
On a dressed basis:
• Negotiated purchases: $293.22.
• Formula net purchases: $293.90.
• Forward contract net purchases: $271.83.
• Negotiated grid net purchases: $296.92.
Slaughter through Thursday was projected at 499,000 head, compared to the same time a week earlier at 488,000 head. Total slaughter for a week earlier is projected at 626,000 head. Actual slaughter for the week ending Aug. 19 was 616,735 head. The average dressed steer weight was 905 lbs., 4 lbs. above the prior week.
Boxed beef prices were lower ahead of the Labor Day holiday. The Choice cutout lost about $4 to close at $313.79, and the Select cutout lost close to $3 to close at $289.25.
“Boxed beef values are $2 to $3/cwt cheaper than last week, though packer margins are black and likely improving a bit with steady to softer cattle costs,” wrote Cassie Fish, market analyst, in The Beef on Thursday. “Selling boxes has been a chore as of late and the whole market has a flat feel.”
Feeder cattle
Feeder cattle futures were up a few dollars. The August contract gained $2.60 to close at $249.10, and the September contract gained just over $2.50 to close at $253.27.
The CME Feeder Cattle Index gained about $3.80 to close at $248.95.
Corn futures continued their slow decline, with the September contract down 11 cents to $4.61 and the December contract down 10 cents to $4.78.
“Heat and humidity are factoring into cattle performance, health and in some instances, death loss. Auction receipts have slowed as some auctions find little demand for operators to handle cattle in the heat,” wrote the Cattle Report on Thursday. “We are nearing the first of September, or the start of fall runs of replacement cattle. The key to next year’s prices will be the size of this year’s placements during the September through November period.”
Kansas: Winter Livestock in Dodge City sold 1,268 head on Monday. Compared to a week earlier, feeder steers 700-850 lbs. sold unevenly steady. There were not enough steer calves for a market test, but a higher trend was noted. There was no recent data on heifers 400-800 lbs., but a lower trend was noted. Benchmark steers averaging 719 lbs. sold from $245.50-248, averaging $246.55.
Missouri: Joplin Regional Stockyards in Carthage sold 3,500 head on Monday. In a preliminary report, there were not enough sales for a market comparison. A group of benchmark steers averaging 738 lbs. sold from $254-257, averaging $255.13.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 6,000 head on Monday. Compared to a week earlier, feeder steers sold $1 higher and 600-700 lbs. sold $4 higher. Feeder heifers sold $1-3 higher. Steer and heifer calves were lightly tested a week earlier and sales on Monday were up to $10 higher on some offerings. Benchmark steers averaging 768 lbs. sold from $242-256, averaging $248.03.
New Mexico: Clovis Livestock in Clovis sold 1,566 head Wednesday. Compared to the previous auction, steer calves 400-500 lbs. sold $10-12 higher, and 500-600 lbs. were $7-20 higher. Feeder steers were sharply lower, with the exception of 650-700 lbs. selling $8 higher. Heifer calves 300-450 lbs. were $8-9 lower, 450- 500 lbs. sold $7 higher, and 500-600 lbs. were $2-4 lower. Feeder heifers 600-650 lbs. sold $15 lower. Benchmark steers averaging 725 lbs. sold between $225-234, averaging $227.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 6,000 head on Monday. Compared to a week earlier, feeder steers sold $1 higher and 600-700 lbs. sold $4 higher. Feeder heifers sold $1-3 higher. Steer and heifer calves were lightly tested a week earlier and sales on Monday were up to $10 higher on some offerings. Benchmark steers averaging 768 lbs. sold from $242-256, averaging $248.03.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 4,268 head Monday. Compared to the last auction, there were light sales for feeder steers in the last few weeks for an accurate comparison. Feeder heifers 800-950 lbs. sold $1-3 higher, and 950-1,000 lbs. traded $3-5 lower. Other weights were not well compared. Benchmark steers averaging 731 lbs. sold between $261-270, averaging $264.12.
Wyoming: Torrington Livestock sold 1,189 head on Wednesday. There was no trend as the earlier sale was two weeks prior. It was an active market with several load lots and some package trade. Benchmark steers averaging 728 lbs. sold from $256-269, averaging $264.98. — Anna Miller, WLJ managing editor
