Wednesday markets
Fed cattle markets are quiet this week. Negotiated cash sales have totaled 25,262 head for the week with 21,400 head trading today. Fed cattle have traded between $94-100 with a weighted average of $97.72 and dressed cattle traded $156-160 and averaged $158.93.
It looks like a lot of formula cattle will be priced this week; today, packers priced formula grid cattle at $154.04 on 21,400 head. Estimated slaughter for today was 117,000 head with 352,000 head for the week.
In the Southern Plains there were not enough purchases in any price range for an adequate market trend. Tuesday was the last reported market at $96. In Nebraska, when compared to last week, live purchases moved 50 cents to $2 higher at $98 and dressed purchases moved $1-1.50 higher from $158-158.50.
In Colorado, when compared to the prior week, live purchases moved mostly $2 higher at $98. In the western Corn Belt there were not enough purchases in any price range for an adequate market trend.
The latest futures markets were unexciting today, with the August live cattle contract moving down 35 cents to $101.50 and October down 40 cents to $105.72. Feeder cattle are inching their way back up today, with August gaining 20 cents to $141.62 and September up 30 cents to $143.27.
Northern Video Auction has been selling for the past three days, mostly Montana cattle, and seeing 500-600 lb. preconditioned calves for fall delivery trading $145-$155. They are having a good sale today.
ShayLe Stewart, DTN market analyst, said “The market isn’t evenly responding to this week’s mixed trade as the board has been mostly lower throughout the week, but feeder cattle sales continue to draw active buyers who seem more optimistic than leery.”
The latest Comprehensive Cutout report shows carcass weights up 4 lbs. at 879 lbs., which remains 38 lbs. over last year. The extra tonnage continues as a burden on the market and will continue through the fall. Quality grade grading was higher by 0.4 at 83.1 percent grading Choice or higher, and is remaining seasonally high.
Boxed beef prices are mixed: Choice was up 27 cents to $201.15 and Select dropped $2.02 to $189.28 on 124 loads.
PAYS auction market in Billings, MT, offered 1,026 head this week and reported the cull cow market.
“Quality this week was mostly average to attractive. Demand was moderate to good for all yearling type cattle. Offerings were light. Cattle were in mostly light flesh this sale with many coming off grass. Market activity today was mostly moderate. Weigh-up cows sold on mostly moderate demand for moderate offerings.
“Packers showed moderate to good demand for slaughter cows as they bid aggressively against feeding buyers over offerings. Lean cows sold with the best demand as packers search for lean cows to blend down trimmings from over finished cattle which are currently being marketed. Many long strings of cows off reputation ranches were seen this sale. Cow quality was mostly attractive overall.
“Feeding cow demand was mostly good today. Feeding cows sold generally steady. Cows started the day offering average weigh up, however by midday cows were pushing heavy amounts of fill and buyers backed off prices as a result. Slaughter bulls sold generally steady on a lower quality offering than was seen last sale.
“Demand for re-breed cattle was mostly moderate to good. Many high-quality sets of young cows were seen this sale off reputation ranches. Young age cows sold mostly steady to $3 higher. Quality was attractive to very attractive. The latest cow beef cutout was $192.58, still higher than Select fed beef. — Pete Crow, WLJ publisher
