Thursday markets
Live cattle closed the day lower, while feeder cattle were mixed ahead of tomorrow’s Cattle on Feed report.
Analyst expectations for Friday’s cattle placements are at 101.4 percent of year-ago levels with a range of 98.8-103.3 percent.
“Placements will exceed a year ago, the average guess up 1.4 percent,” Cassie Fish, market analyst, wrote. “Marketings were lousy in September, estimated at 97 percent with the same number of kill days. The cattle feeder is not the culprit here but rather the inadequate daily fed kill throughput at plants, a well-known and frustrating reality.”
Live cattle futures traded mostly lower during the day, with the October contract down 97 cents to $124.97 and the December contract down 97 cents to $129.55.
“The lack of higher cash cattle trade during the week and beef values that have been steady at best are weighing on futures, which had focused on a potential market turnaround over the last week,” Rick Kment, DTN contributing analyst, wrote in the midday comments. “Given that prices are still in the top 25 percent of recent trading ranges, technical support levels are going to be less of an issue, with more focus moving on fundamental support for live cattle and beef cattle markets.”
Cash trade was moderate, with 6,616 head selling between $123-125.50, averaging $123.99. Dressed steers sold between $124-125.50. Negotiated cash trade in Kansas, Nebraska and the Western Corn Belt was limited on light demand. In the Texas Panhandle, negotiated cash trading has been mostly inactive on light demand. On the formula side, 22,300 head averaging 867 lbs. sold for $204.08.
The Special Fed Cattle Exchange Auction held today listed a total of 2,430 head (Texas 1,284 head; Kansas 756 head; Nebraska 138 head; South Dakota 252 head), of which none sold. Reserve prices ranged from $121-126. Opening prices ranged from $119-122, and high bids ranged from $121-124.25.
Slaughter for the day is projected to be 120,000 head, 1,000 above last week. USDA released actual slaughter numbers showing 656,659 head were slaughtered for the week ending Oct. 9. Steer carcass weights were 921 lbs., up 5 lbs. from the previous week. The National Weekly Fed Cattle Comprehensive report showed quality grade grading was down 0.3 percent at 80.2 percent, and dressed weights were down almost 3 lbs. to 885 lbs.
Boxed beef prices closed the day mixed on 158 loads, with the Choice cutout up 62 cents to $280.66 and the Select cutout down 8 cents to $262.72.
USDA’s weekly Export Sales report for the week ending Oct. 14 showed net sales of 7,800 metric tons (mt), down 50 percent from the previous week and 51 percent from the prior four-week average. Exports were 17,100 mt, up 10 percent from the previous week, but unchanged from the prior four-week average. The destinations were primarily South Korea (5,400 mt), Japan (4,000 mt), China (3,000 mt), Mexico (1,400 mt) and Taiwan (1,100 mt).
Feeder cattle
Feeder cattle closed the day mixed, with the October contract up 32 cents to $156.25 and the November contract down 27 cents to $159.07. The CME Feeder Cattle Index was higher $1.01 to $155.11.
Corn traded lower, with the December contract down 7 cents to $5.32 and the March contract down 6 cents to $5.41 a bushel.
South Dakota: Hub City Livestock in Aberdeen sold 4,365 head on Wednesday. Compared to the previous auction, steers 850-900 lbs. sold $2-4 higher, and 950-1,000 lbs. were steady to $1 lower. Heifers 800-850 lbs. sold $3-4 higher. Benchmark steers averaging 787 lbs. sold between $155.50-162, averaging $160.36.
Oklahoma: OKC West in El Reno sold 6,540 head on Wednesday. Compared to last week, feeder steers over 750 lbs. sold $3-5 higher, while under 750 lbs. were mostly steady. Feeder heifers traded $3-5 higher. Benchmark steers averaging 778 lbs. sold between $154-164 and averaged $159.73.
New Mexico: Clovis Livestock in Clovis sold 3,176 head on Wednesday. Compared to last week, feeder steer and heifer calves sold $2-5 higher. A group of unweaned steers averaging 707 lbs. sold between $134.75-142.50, averaging $139.47. — Charles Wallace, WLJ editor
