Thursday markets
Cash fed cattle trade was again slow to develop. The first significant trade was Wednesday with 39,205 head sold mostly at $103-103.50 in the Southern Plains and $103 in Kansas. Northern Plains feeders were holding out and pricing cattle at $105, and they received rewards for their patience, trading cattle as high as $106. Dressed trade was between $162-163.
Futures markets were mixed and for the most part trading sideways. October live cattle were higher and closed at $106.77 Thursday, and December live cattle traded lower at $111.32. Feeders were hoping that nearby support from futures would shore up the cash fed market several dollars.
Estimated slaughter was strong through Thursday, with 479,000 head processed compared with 471,000 head the same week last year. Boxed beef values took a sharp drop down $4-7 from a week earlier. Choice was trading at $215.05 Thursday and Select at $203.99 on 217 loads.
The Cattle Report said, “Some of the custom feeding yards were encouraging customers to accept $103 bids, having commitments to take large shipments of yearlings off grass from other customers. Some of those customers were kicking back—complaining of being pushed to market cattle without proper attention to achieving best prices. It is sometimes difficult for a custom feeding yard to balance the various and conflicting interest of different customers.
Rick Kment at DTN reported, “Cash cattle prices posted a much-anticipated bounce higher Wednesday afternoon when light-to-moderate activity developed in the South at $103-103.50/cwt live basis. This is generally $2 per cwt higher than last week’s average. Although prices are still well below early asking prices, the ability to leverage the recent rally in futures trade into a sizable gain during the week is expected to spark renewed optimism.
“Concern is starting to develop in feeder cattle futures, which posted strong triple-digit losses Wednesday and broke away from the aggressive market rally last week. At this point, support levels appear to be well established, but concern that further gains may be limited could quickly change the technical momentum in the complex, leading to further liquidation.”
Feeder cattle markets looked like another rally was developing at the CME, but dashed those hopes and dropped below $140. September feeder cattle contracts lost a couple dollars on the week, closing Thursday at $139.92 and the October contract at $141.45. There seems to be some hesitation in the market over the holiday season and how the office parties and restaurant business which have been strong beef consumption events. The latest CME feeder cattle cash index was $141.20 on Sept. 17.
OKC West Auction in El Reno, OK, sold 6,352 head and reported compared to the week prior, steers under 900 lbs. sold $4-6 higher, and over 900 lbs. sold $1-4 higher. Feeder heifers traded $4-8 higher. Steer and heifer calves were not well tested on limited comparable offerings for an accurate trend. Benchmark steers weighed 775 lbs. and averaged $142.97.
Hub City Livestock Auction in Aberdeen, SD, sold 3,602 head and reported, compared to the week before, the best test was on steers 800-1,000 lbs. at $2-5 higher with instances up to $10 higher on 850- 900 lbs. The best test on heifers was 850-900 lbs. selling mostly steady. Good to very good demand for another large yearling offering. Benchmark steers weighing 793 lbs. averaged $149.60. — Pete Crow, WLJ publisher
