Thursday markets
The cattle complex closed mixed as packers are showing interest and Southern cattle are trading $1 higher. There is a tentative deal to avert a potential strike by railroad workers.
Live cattle closed higher, with the October and December contracts up $1.27 to $145.62 and $151.32, respectively.
“The cash cattle market has seen packers show a little more interest, and Southern cattle have even begun to trade higher,” ShayLe Stewart, DTN livestock analyst, wrote in the midday comments. “Southern live cattle are trading for $142, which is $1 higher than last week’s weighted average. Still, Northern dressed cattle are continuing to sell for mostly $226, which is steady with both Wednesday’s business and last week’s market.”
Cash trade was active, with 20,831 head sold for $143. Dressed steers averaged $226.60.
On the formula side, 30,300 head averaging 902 lbs. sold for $230.60.
Slaughter for the day is projected to be 125,000 head, 2,000 below last week.
Actual slaughter for the week ending Sept. 3 was 642,388 head. Steers dressed weights were 904 lbs.
Boxed beef closed lower on 145 loads, with the Choice cutout down $1.13 to $252.34 and the Select cutout down 16 cents to $229.95.
“Boxed beef values continue under pressure, dipping to the 2022 lows at $252.83,” Cassie Fish, market analyst for The Beef, wrote. “Considering this week is expected to be another big slaughter week and it is mid-September, seasonally new lows could be carved out next week. Packer margins are still black. Middle meats are seasonally weak.”
USDA’s Weekly Export report for the Sept. 2-8 period showed net sales of 15,100 metric tons (mt). The top three destinations were primarily South Korea (6,700 mt), Japan (4,200 mt) and Mexico (1,700 mt). Exports of 15,200 mt were primarily to Japan (4,600 mt), South Korea (3,800 mt) and China (2,600 mt).
Feeder cattle
Despite lower corn prices, feeder cattle closed lower. The September contract was down 62 cents to $179.35, and the October contract was down 50 cents to $180.92.
“The corn complex is trending just slightly below steady, which could be part of the reason why the feeder cattle market is leery as any higher run in corn prices will be seen as pressuring to the feeder cattle market,” Stewart said.
Corn closed lower, with the December and March contracts down 4 cents to $6.77 and $6.82, respectively.
Kansas: Winter Livestock in Dodge City sold 3,499 head Wednesday. Compared to the previous auction, feeder steers 775-975 lbs. sold $2-4 lower. Steers 500-775 lbs. sold steady to $4 lower. Steer calves 400-500 lbs. sold $10-20 lower. Heifers 550-925 lbs. sold steady to $2 higher. However, thin-fleshed and fancy heifers sold $8-10 higher. Heifer calves 400-550 lbs. sold $7-9 lower. Benchmark steers averaging 782 lbs. sold between $172-175 and averaged $173.26.
Oklahoma: OKC West in El Reno sold 7,887 head Wednesday. Compared to the last auction, feeder cattle and calves sold $6-8 lower. Benchmark steers averaging 785 lbs. sold between $165-181, averaging $176.32.
South Dakota: Hub City Livestock in Aberdeen sold 4,170 head Wednesday. Compared to the last auction, steers 900-950 lbs. sold steady to $2 higher. The best test on heifers 900-950 lbs. was mostly steady, with instances of up to $4 lower. Benchmark steers averaging 733 lbs. sold between $205.50-209 and averaged $206.65.
Texas: Lonestar Stockyards in Wildorado sold 1,148 head Tuesday. Compared to the previous auction, there were not enough comparable sales on feeder steers or heifers for a market trend. Steer and heifer calves traded mostly steady. Benchmark steers averaging 795 lbs. sold for $172.50. — Charles Wallace, WLJ editor
