Wednesday markets
“Live cattle futures were lower most of Wednesday, staying off Tuesday’s fresh contract highs, and when the Federal Reserve gave a nod to inflation pressures with a 0.75-percentage-point rate hike Wednesday afternoon, the cattle market kept its head down,” Elaine Kub, DTN contributing analyst, wrote in her closing comments.
Live cattle futures were lower. The October contract lost 42 cents to close at $145.87, and the December contract lost 32 cents to close at $150.75.
There was some cash trade movement today, with 4,488 head sold. Live steers sold from $143-145, averaging $144.90. Dressed steers sold from $226-232, averaging $226.74. Through Wednesday morning, only about 10,000 head had sold so far for the week.
On the formula side, a total of 13,000 head averaging 869 lbs. sold for an average of $226.78.
The national weekly direct beef type price distribution for the week of Sept. 12 to Sept. 19 was the following on a live basis:
• Negotiated purchases: $143.49.
• Formula net purchases: $144.90.
• Forward contract net purchases: $145.
• Negotiated grid net purchases: $144.36.
On a dressed basis:
• Negotiated purchases: $227.05.
• Formula net purchases: $228.45.
• Forward contract net purchases: $227.28.
• Negotiated grid net purchases: $232.41.
Slaughter for the day is estimated at 127,000 head, bringing the week’s total to about 382,000 head.
Boxed beef prices were lower on 197 loads. The Choice cutout lost $2.51 to close at $249.13, and the Select cutout lost $1.09 to close at $226.14.
“The Choice cutout has slipped almost $20 per cwt since the start of August, and the Choice-to-Select spread has generally been narrowing,” Kub said. “Nevertheless, in coming days, cattle futures traders are more likely to focus on the supply side of things in the upcoming Cattle on Feed report, which is expected to show roughly the same Sept. 1 number of cattle on feed as a year ago, after a diminished beef herd contributed a lower quantity of August placements (estimated down 1.5% from last year).”
Feeder cattle
Feeder cattle futures were also lower today. The September contract lost 62 cents to close at $178.17, and the October contract lost 80 cents to close at $179.22.
The CME Feeder Cattle Index lost 10 cents to close at $178.10.
“Cash trade for calves at sale barns across the countryside remains seasonally pretty quiet, but it’s the eerie quiet before a storm, i.e. the upcoming fall run,” Kub said.
Colorado: Winter Livestock in La Junta sold 664 head on Tuesday. Compared to a week earlier, steer calves under 500 lbs. sold $3-5 higher, 500-600 lbs. sold $2-3 higher and over 600 lbs. sold steady to $1 higher. Yearling feeder steers over 700 lbs. sold steady to $1 higher. Heifer calves sold steady to $2 higher, and yearling heifers were scarce. Unweaned benchmark steers averaging 760 lbs. averaged $170. — Anna Miller, WLJ managing editor
