Thursday markets
The Cattle on Feed (COF) report had a bearish effect on cattle markets. Cattle on feed for August was 1.5 percent more cattle. Feeder cattle placements is where traders became confused; placements were 11 percent when analysts were expecting 6.7 percent. Marketings were down just 1.6 percent. We have record-high cattle on feed and a record number of cattle that have been on feed for more than 150 days. Packers will have ample supplies of overfed cattle for the next few months.
Fed cattle trade was a good hard week for negotiated cash trade. Texas feeders sold at $105 early in the week and Kansas feeders held off and received $106-107 for their cattle. Nebraska feeders sold later in the week at $105 live and $167 dressed.
Futures markets have been slowly drifting downward. The August live cattle contract was down $1.07 to $102.97 as it expired; the October contract was down 85 cents to $106.14 and December lost $1.17 to settle at $109.35. Very low volume. Feeder cattle are drifting lower as well. August lost 50 cents to $141.97, September lost 55 cents to $141.22 and October lost 77 cents to $141.15.
The folks at the Cattle Report said, “Some traders are able to gather enough information to anticipate USDA COF reports, but most participants simply watch and wonder. Someday the industry will realize that animal ID will make available instantaneous information on placements, marketings and on-feed numbers with a click of your mouse.”
ShayLe Stewart, DTN livestock analyst, comments, “It’s understandable that with Labor Day buying mostly wrapped up for major distributors, traders are worried about the boxed beef market nearing its top, and consequently the board is showing the uncertainty. There’s been a healthy trade thus far in the week, but more cash cattle are expected to trade before the week’s over. Bids are on the table in Iowa at $105, in Nebraska there’s some light inquiry and in Kansas there’s bids on the table for $104.”
Bassett Livestock Auction, Bassett, NE, offered 3,025 head and reported compared with the week before, 800-950-lb. steers traded unevenly steady and 700-750-lb. heifers traded $4 lower. Demand was good with several buyers and active internet bidding. Benchmark steers weighing 755 lbs. sold for $158.
Turlock Livestock Auction in Turlock, CA, offered 2,285 head in their Aug. 25sale and reported 700-800-lb. steers trading between $140-$154.50; 500-600-lb. steer calves traded between $158-174. One load of benchmark steers weighing 733 lbs. brought $153. — Pete Crow, WLJ publisher
