Friday markets
Economic concerns dominated the market, as commodities were mostly lower, the Dow Jones Industrial Average was down over 1.6% and traders were awaiting the Cattle on Feed report.
USDA’s National Agricultural Statistics Service released the Cattle on Feed report after the market closed, showing cattle and calves on feed for feedlots with a capacity of 1,000 head or more totaling 11.3 million head on Sept. 1, 1% above 2021. Placements in feedlots during August totaled 2.11 million head, slightly above 2021, and marketings of fed cattle during August totaled 2 million head, 6% above last year.
Live cattle closed lower, with the October contract down 60 cents to $144.25 and the December contract down 80 cents to $148.55.
Cash trade was fairly light, with 9,483 head selling between $143-148.50, averaging $147.41. Dressed steers averaged $228.41.
“The cash cattle market hasn’t seen any bids renewed at this time and it’s looking like the vast majority of the week’s business is done,” ShayLe Stewart, DTN livestock analyst, wrote in the midday comments. “Throughout the week southern live cattle traded for $143 which is $1 stronger than last week’s weighted average, and northern dressed cattle traded for mostly $228 which is also $1 stronger than last week’s weighted average.”
Slaughter through today is projected to be 125,000 head, with tomorrow’s slaughter expected to reach 33,000 head, and total slaughter for the week will be about 667,000 head.
Boxed beef prices closed mixed on 100 loads, with the Choice cutout up 23 cents to $248.63 and the Select cutout down $2.80 to $219.31.
USDA released the Cold Storage report yesterday showing the total supply of beef in cold storage at the end of August was estimated at 515,676 million lbs., 24.3% higher than a year ago and 11.5% higher than the five-year average. Beef inventory increased 0.7% from the previous month.
Feeder cattle
Feeder cattle closed on the strength of lower corn futures, with the September contract down 7 cents to $178.12 and the October contract up 37 cents to $178.35. The CME Feeder Cattle Index was up 40 cents to $180.15.
Corn futures were lower, with the December and March contracts down 11 cents a bushel to $6.76 and $6.81, respectively.
Kansas: Winter Livestock in Pratt sold 2,547 head Thursday. Compared to the last auction, feeder steers sold $3-5 higher, and feeder heifers sold $3-6 higher. Benchmark steers averaging 765 lbs. sold between $174.50-179.50 and averaged $176.30.
Nebraska: Valentine Livestock in Valentine sold 1,800 head Thursday. Compared to the last auction, 750 lb. steers traded $14 lower, and 850-900 lb. steers traded $7 lower. There were a limited number of comparable offerings for heifers, with 850 lb. offerings trading $2 higher. Benchmark steers averaging 761 lbs. sold between $186-197.50, averaging $193.10.
Oklahoma: Apache Livestock in Apache sold 2,002 head Thursday. Compared to the previous auction, feeder steers sold steady to $2 lower, and feeder heifers were steady to $2 higher. Steer calves sold unevenly steady, and heifer calves were not well tested. A group of steers averaging 619 lbs. averaged $179.28.
South Dakota: Mitchell Livestock in Mitchell sold 1,986 head Thursday. Due to the lower numbers, a trend could not be established, but a higher undertone was noted on steers and heifers. Benchmark steers averaging 733 lbs. sold between $175-192, averaging $185.44.
Texas: Cattlemen’s Livestock in Dalhart sold 1,966 head Thursday. There were not enough comparable sales on feeder steers or heifers due to last week’s light test on yearlings, but a sharply higher undertone was noted. Steer calves traded mostly steady, and heifer calves traded mostly $1-2 higher. Benchmark steers averaging 775 lbs. sold for $176.50. — Charles Wallace, WLJ editor
