Thursday markets
Cattle futures closed mixed for the third straight day as cash trade remains relatively light for the week.
Live cattle futures closed lower, with the August contract down $1.15 to $123.27 and the October contract lower 70 cents to $129.60.
Cash trade was more active today, with 17,177 head sold between $121-129, averaging $127.61. Dressed steers sold between $200-206.50, averaging $202.91. The USDA is reporting trade in the Texas Panhandle was $1-2 higher at $123 compared to last week. In Nebraska, a few live and dressed purchases traded at $128 and $202, respectively. In the western Corn Belt, a few live and dressed purchases traded at $128 and $202-206.50, respectively. On the formula side, 31,500 head averaging 885 lbs. sold for $201.97.
The special Fed Cattle Exchange Auction today listed a total of 3,731 head, of which 1,387 sold from $122-123 and 2,344 head were unsold. Reserve prices ranged from $122-127. The state-by-state breakdown was: Texas offered 3,470 total head, with 1,387 head sold and 2,083 head unsold; Kansas offered 72 total head, all of which went unsold; Oklahoma offered 189 total head, all of which went unsold.
Boxed beef prices were higher today on light trade of 77 loads. The Choice cutout was up 38 cents to $347.27 and the Select cutout was higher $3.90, closing at $319.59.
Slaughter for the day is expected to be 114,000 head, 5,000 head below last week. Weekly slaughter is so far 463,000 head, 4,000 head below last week
“The weekly slaughter is failing to keep pace with last week and daily slaughter numbers are being revised downward as labor and mechanical issues plague the processing industry,” The Cattle Report wrote. “Processing margins are so large, any student of business will recognize their intent to maximize production. The dual hazards of equipment breakdowns and labor shortages are difficult obstacles to overcome.”
Net sales of 10,400 metric tons (mt) reported for the week ending Aug. 19 were down 6 percent from the previous week and 33 percent from the prior four-week average. Exports of 18,700 mt were down 5 percent from the previous week and 4 percent from the prior four-week average. The primary destinations were: Japan (5,400 mt), South Korea (5,300 mt), China (3,500 mt), Mexico (1,200 mt) and Taiwan (1,100 mt).
Feeder cattle
Feeder cattle closed mixed, with the August contract up 15 cents to $159.45 and the September contract down 70 cents, closing at $164.45. The CME Feeder Cattle Index was higher 72 cents to $158.79.
Corn futures closed mixed, with the September contract up a penny to $5.52 and the December contract down a cent to $5.50 a bushel.
South Dakota: Hub City Livestock in Aberdeen sold 3,269 head on Wednesday. Compared to the previous auction, there were steers of different weight classes, so an accurate trend could not be established. However, a higher undertone was noted on steers. The best test was on heifers 1,000-1,050 lbs., which sold $2-5 higher. Benchmark steers averaging 769 lbs. sold between $169-169.50.
Nebraska: Bassett Livestock in Bassett sold 3,250 head on Wednesday. Compared to the last auction, steers 850-950 lbs. traded $3-9 higher and 850-lb. heifers traded steady. Demand was very good with several buyers. Benchmark steers averaging 727 lbs. sold between $164.50-175.50, averaging $173.66.
Oklahoma: OKC West in El Reno sold 6,685 head on Wednesday. Compared to last week, feeder steers sold $2-3 higher. Feeder heifers traded $2-4 higher. Demand was moderate to good. Benchmark steers averaging 783 lbs. sold between $151.50-161, averaging $156.71. — Charles Wallace, WLJ editor
