With one less trading day for the week due to the Labor Day holiday, action in the cattle markets was light and mostly steady.
Live cattle futures traded sideways over the week. The October contract gained 3 cents to close at $236.95, and the December contract lost 5 cents to close at $238.55.
“The mundane sideways to somewhat lower chop is continuing in the live cattle complex, as no further trade has developed in the fed cash cattle market, and traders remain concerned that the market could be overbought,” wrote ShayLe Stewart, DTN livestock analyst, in her Thursday midday comments.
Cash trade through Thursday totaled about 36,000 head. Live steers sold from $238-245, and dressed steers sold from $380-383.
Cash trade for the week ending Aug. 31 totaled 59,650 head. Live steers averaged $244.13, and dressed steers averaged $385.76.
Slaughter through Thursday totaled about 363,000 head, compared to 462,000 head a week earlier, due to Labor Day on Monday. Total slaughter for a week earlier is estimated at 565,000 head. Actual slaughter for the week ending Aug. 23 was 555,676 head. The average steer dressed weight was 952 lbs., 9 lbs. above the prior week.
“With packers black and cash prices softening, there is speculation weekly production schedules will begin to edge upward,” wrote Cassie Fish, market analyst, in The Beef on Thursday. “It’s anticipated that a larger production schedule will pressure boxed beef values, adding to the short-term bearish vibe.”
Boxed beef prices traded sideways over the week, with the Choice cutout down 20 cents to $414.21 and the Select cutout up less than $2 to $387.77.
Feeder cattle
Feeder cattle futures traded mostly sideways but ultimately closed moderately lower. The September contract lost about $2 to close at $359.82, and the October contract lost more than $2 to close at $358.95.
“This nervousness remains an issue for the market in terms of its position throughout the futures complex but is not a concern in the countryside as feeder cattle continue to see incredible demand thanks to the continued interest of buyers,” Stewart said.
The CME Feeder Cattle Index closed higher, up nearly $5 to $365.43.
Corn futures were higher, up 14 cents on the September contract to $3.99 and up 9 cents on the December contract to $4.19.
Many auction markets were closed for the Labor Day holiday.
Kansas: Winter Livestock in Dodge City sold 2,050 head on Wednesday. Compared to a week earlier, steers under 600 lbs. sold $11 higher while steers over 600 lbs. sold steady. Heifers over 600 lbs. sold steady to $5 higher, and under 600 lbs. sold steady with a soft undertone. Benchmark steers averaging 775 lbs. sold from $359-376, averaging $369.10.
Missouri: Ozarks Regional Stockyards in West Plains sold 1,943 head on Tuesday. Compared to the previous auction, feeder steers traded steady to $6 higher, while feeder heifers were not well tested. Steer calves were steady, while heifer calves were steady to $5 higher. Benchmark steers averaging 762 lbs. sold between $360-370 and averaged $362.95.
Oklahoma: OKC West in El Reno sold 2,500 head on Tuesday. Compared to the last auction, steer calves sold unevenly steady. Heifer calves over 500 lbs. traded unevenly steady, while under 500 lbs. were $3-5 higher. Benchmark steers averaging 736 lbs. sold for $355-380, averaging $366.04.
Wyoming: Torrington Livestock in Torrington sold 2,617 head on Wednesday. Compared to the week prior, feeder steers and heifers traded mostly steady. Benchmark steers averaging 784 lbs. sold from $381-387, averaging $383.29. — Anna Miller Fortozo, WLJ managing editor
