Tuesday markets
Cash trade was virtually nonexistent today—only a total of 268 cattle were sold. Trading was at a standstill in the Southern Plains and Nebraska, and inactive on light demand in the western Corn Belt. There were not enough purchases for a market trend. Last week, live purchases moved from $101-102 and dressed purchases at $160-161.
“Ideas are circulating that packers bought the cheapest cattle of the past few weeks last week,” the Cattle Report said.
A total of 26,100 head sold on the formula grid, weighing 892 lbs. and bringing $165.10.
CME live cattle futures were mostly red all day, and then saw a slight rally. The day closed with the October contract up 22 cents to $107.10, December down 12 cents to $11.57 and February up 32 cents to $116.02.
Boxed beef prices lost $1.12 on the Choice cutout and $1.48 on the Select cutout on 159 loads.
Today’s slaughter is estimated at 120,000 head, 2,000 head over last week and on trend with the same week last year.
“As long as processing margins are well above any historical expectations, packers should slaughter all they can with the plants and labor force they have on hand,” the Cattle Report said. “They will always attempt lower fed prices but these large slaughter weeks should continue even with declining box prices and rising fed cattle cost back to a more normalized level.”
Feeder cattle
“Helping the feeder cattle complex trade somewhat higher are weakening corn prices and the hope that cash cattle trade is higher this week,” reported ShayLe Stewart, DTN market analyst.
CME feeder cattle futures were slightly up: The September contract was up 17 cents to $141.67, October up $1.10 to $143.70, and November up 92 cents to $144.12. The latest known CME Feeder Cattle Index was down 93 cents to $140.52.
“The countryside is going to see a shift in feeder cattle sales before the fall run as bawling calves are already hitting some sale barns and buyers are interested in the hard-to-come-by yearlings, but aren’t overly anxiously to pick up groups of high-risk calves.
“With the harsh swings in temperature putting additional stress on fresh bawling calves, concerns of sickness and lack of backgrounding shots—buyers are going to want to wait for long-weaned calves that aren’t as much of a risk, or are going to want prices to get cheaper for these calves hitting the auctions before they buy.”
Tri-State Livestock Auction in McCook, NE, sold 4,150 head on Monday. Compared to last week, steers and heifers under 600 lbs. sold steady to $4 lower, except 450-lb. steers sold $3 higher. Steers weighing 750 lbs. sold $5 higher.
Oklahoma National Stockyards Feeder Cattle in Oklahoma City, OK, sold 8,737 head yesterday. Compared to the last sale two weeks ago, feeder steers and heifers sold $4-8 higher. Demand was good, but many conditions were in the buyers’ favor. Weaned calves sold mostly steady to firm, however most of the unweaned calves sold at a sharp discount. Supply did include some reputation brand unweaned calves and these sold to very good demand. — Anna Miller, WLJ editor
