Thursday markets
Feeder cattle continue to lead the market higher.
Live cattle futures traded higher following feeder cattle, with the October contract up $1.45 to $125.27 and the December contract higher $1.87 to $130.10.
“Although prices still have a long way to move before testing long-term resistance, the continued support building in the market is pointing to seasonal lows being set in the cattle complex,” Rick Kment, DTN contributing analyst, wrote in the midday comments. “This is not only expected to help sustain price gains in the near future, but will also likely draw traders back to the market who previously were waiting for additional market confirmation of higher prices.”
Cash trade was light compared to Wednesday, with 3,532 head selling between $121-124, averaging $122.75. Dressed steers sold between $193-197, averaging $196.39. On the formula side, 33,900 head averaging 892 lbs. sold for $202.45.
“The cash-fed cattle market has had a better tone this week, with active trade occurring for the second consecutive week,” Cassie Fish, market analyst for The Beef, said. “Prices have been steady to firm this week, and packers’ continued interest even today, despite the week-to-date total volume already at 77K head, sends a positive signal. The practical top this week is the well-worn $124.”
Slaughter for the day is projected to be 120,000 head, 1,000 below last week. The week-to-date slaughter is above last week’s pace with 483,000 head thus far, 10,000 above last week.
USDA’s National Weekly Fed Cattle Comprehensive report showed carcass weights down 3 lbs. to 879 lbs.—17 lbs. under last year. Quality grade percentage was the same as last week at 80.7 percent.
Boxed beef prices were mixed on 185 loads, with the Choice cutout lower $1.32 to $285.30 and the Select cutout up $1.53 to $264.44.
USDA’s weekly export sales report for the week ending Sept. 30 shows net sales of 15,600 metric tons (mt), down 3 percent from the previous week but up 5 percent from the prior four-week average. Exports were 15,700 mt, down 15 percent from the previous week and 13 percent from the prior 4-week average. The destinations were primarily to Japan (4,700 mt), South Korea (3,700 mt), China (2,700 mt), Mexico (1,200 mt) and Taiwan (1,100 mt).
Feeder cattle
Feeder cattle showed strong support, with the October contract higher $3.55 to $160.35 and the November contract up $3.47 to $161.60. The CME Feeder Cattle Index was up 92 cents to $153.80.
“Despite the focus on higher-than-expected cattle numbers during the last couple of months, the outlook for tighter overall cattle supplies, once yearly totals are calculated, is still pointing to a contracting beef herd,” Kment said. “With strong underlying gains redeveloping in stock prices, less focus on dramatic economic pressure will only help support expectations of stronger beef demand through the next several months.”
Corn futures were lower midday but closed the day slightly higher, with the December contract up a cent to $5.34 and the March contract higher 2 cents, closing at $5.43 a bushel.
South Dakota: Hub City Livestock in Aberdeen sold 4,444 head on Wednesday. Compared to last week, there were too few yearlings to compare to today and develop an accurate price trend; however, a higher undertone was noted on yearling steers. Many strings and loads of yearlings offered today, both off grass and out of yards, were selling with good to very good demand. Benchmark steers averaging 775 lbs. sold between $159-160.50.
Nebraska: Bassett Livestock in Bassett sold 4,155 head on Wednesday. Compared to the previous auction, steers 850-950 lbs. traded $2-5 higher, with no comparable offerings for heifers. Benchmark steers averaging 713 lbs. sold between $158-167.50 and averaged $164.23.
Oklahoma: OKC West in El Reno sold 5,878 head on Wednesday. Compared to last week, feeder steers traded $1-2 higher. Feeder heifers under 800 lbs. sold $2-3 lower, and over 800 lbs. were mostly steady. Demand was moderate to good for steers, light for heifers. Benchmark steers averaging 779 lbs. sold between $153.50-158.75, averaging $156.63.
Kansas: Winter Livestock in Dodge City sold 2,957 head on Wednesday. Compared to the previous auction, feeder steers 700-1,000 lbs. sold steady to $2 higher. There was no recent comparison on steers under 700 lbs.; however, a steady tone was noted. Feeder heifers 500-850 lbs. sold steady to $2 higher. Heifer calves under 500 lbs. sold steady. Benchmark steers averaging 751 lbs. sold for $160.75. — Charles Wallace, WLJ editor
