Thursday markets
Cattle on Feed strength may have run its course, as the cattle complex is retracting after strong gains during the week.
Live cattle closed the day lower, with the October contract down $2.72 to $124.50, the December contract down $1.25 to $130.32 and the February contract down $1.20 to $135.75.
Cash trade was moderate, with 4,381 head selling between $126-128, averaging $127.19. Dressed steers sold between $199-200, averaging $199.83.
“The bulk of the weekly cattle have been trading on Wednesday, and this week was no exception,” The Cattle Report wrote. “Cattle traded in all regions at higher prices. In the South, cattle traded mostly at $126 with late sales at $127, while northern live sales were mainly $127-129. Dressed sales in the North were at $200—$4 higher than last week.”
On the formula side, 23,800 head averaging 870 lbs. sold for $201.94.
Boxed beef prices were higher on 130 loads, with the Choice cutout up $1.26 to $284.89 and the Select cutout up 95 cents to $262.64.
Slaughter for the day is projected to be 122,000 head, 2,000 above last week.
The actual slaughter report for the week ending Oct. 16 showed 643,134 head were processed. Steer carcass weights were 922 lbs., up 1 lb. from the previous week. The National Weekly Fed Cattle Comprehensive report showed quality grade grading was down 1 percent at 79.2 percent, and dressed weights were up almost 1 lb. to 886 lbs.
“The slaughter volume this past week increased to 661,000 head—one of the largest in many weeks,” The Cattle Report wrote. “Holding, sustaining, or improving that level will be key to the market for the remainder of the year. Holiday demand for Thanksgiving and Christmas could see beef playing a more prominent role at the center of the plate. Retailers, who lagged beef price increases going up, now are lagging in recent decreases moving down. This may enable them to feature a few specials at lower prices.”
The Weekly Export Sales report for the week of Oct. 15-21 showed net sales of 19,200 metric tons (mt), noticeably higher than the previous week and up 39 percent from the prior four-week average. Exports were 16,700 mt, down 2 percent from the previous week but unchanged from the prior four-week average. The destinations were primarily South Korea (4,700 mt), Japan (4,000 mt), China (3,500 mt), Mexico (1,200 mt) and Taiwan (1,000 mt).
Feeder cattle
Feeder cattle closed mixed, with the October contract up 17 cents to $156.67, the November contract down 82 cents to $157.65 and the January contract down $1.37 to $157.57. The CME Feeder Cattle Index was up 53 cents to $156.03.
Corn contracts were higher, with both the December and March contracts up 5 cents a bushel to $5.62 and $5.71, respectively.
Kansas: Winter Livestock in Dodge City sold 2,950 head on Wednesday. Compared to the last auction, feeder steers 700-900 lbs. sold steady to $2 higher. Steer calves 350-700 lbs. sold $6-8 higher. Feeder heifers 600-900 lbs. sold steady to $2 higher. Heifer calves 400-600 lbs. sold $6-8 higher. Benchmark steers averaging 738 lbs. sold between $149.50-162, averaging $158.39.
Nebraska: Bassett Livestock in Bassett sold 3,170 head on Wednesday. Compared to the previous auction, steers 600-950 lbs. traded $2-9 higher. There were a limited number of comparable offerings for heifers, so a trend could not be determined. Benchmark steers averaging 717 lbs. sold between $169.50-175.50, averaging $173.16.
New Mexico: Clovis Livestock in Clovis sold 2,591 head on Wednesday. Compared to the previous auction, steer and heifer calves and feeders sold $3-7 lower, with instances of $10 lower on unweaned or fleshy offerings. A group of steers averaging 725 lbs. sold between $137-139, averaging $138.71.
Oklahoma: OKC West in El Reno sold 5,309 head on Wednesday. Compared to last week, feeder steers and heifers sold $3-5 higher on limited comparable offerings. Steer and heifer calves traded mostly steady. Calves that were long weaned and had multiple rounds of shots sold $3-5 higher. Benchmark steers averaging 780 lbs. sold between $152-166 and averaged $162.90.
South Dakota: Hub City Livestock in Aberdeen sold 3,050 head on Wednesday. Compared to the last auction, steer calves 450-500 lbs. sold mostly steady, while 501-600 lbs. were $4-5 lower. The best test was on heifer calves 450-500 lbs., which sold mostly steady, and 501-550 lbs. were $4-5 higher. Benchmark steers averaging 726 lbs. sold between $161-163.50 and averaged $162.54.
Wyoming: Torrington Livestock In Torrington sold 5,273 head on Wednesday. Compared to the previous auction, steer calves traded unevenly steady with a few instances of $2 higher. There were not enough receipts for a trend on yearling steers. Heifer calves traded $2-4 higher. Yearling heifers traded $5-7 higher. Benchmark steers averaging 758 lbs. sold between $146-154, averaging $147.88. — Charles Wallace, WLJ editor
