Friday markets
Cash fed trade turned active Wednesday afternoon, trading over 110,000 head for the week. Friday was left to fill in needs. Prices were mostly $105 live and $165 dressed. Slaughter is expected to come in this week at between 645-650,000 head. Boxed beef prices are moving higher; Choice is up $1.74 to $219.22 and Select is down $0.37 to $207.37 with a movement of 67 loads.
There wasn’t anything to like about today’s futures market as they were all cattle contracts showing red. October live cattle were down 45 cents to $107.57 and December was off 85 cents to $111.40 in late session trade.
The just released Sept. 1 on-feed report listed 11.4 million head, up 4 percent from September 2019. Placements in August totaled 2.06 million head, 9 percent above last year; marketings in August totaled 1.89 million head, 3 percent less than the prior year; other disappearance in August totaled 55,000 head, 10 percent under the same time last year. Should be an interesting open this Monday at the CME.
Cassie Fish at the Beef said, “Despite the seasonal for a boxed beef price low in early October, wholesale beef prices have risen this week, given many the idea that boxes bottomed early. Rib demand has been very brisk, the rib up $18 over a week ago though other primals have performed better than expected too. There very well may be more seasonal weakness develop next week, but its bearish influence will be nil, unless the market falls further than anticipated and has trouble mounting a rally.”
At the CME: “Another day of looming pressure sends the feeder cattle contracts lower as the market searches for support while trying to secure position amid a $0.03 corn rally. October feeders are down $1.95 at $140.15, November feeders are down $2.20 at $140.15 and January feeders are down $2.07 at $138.82. Knowing that placements are expected to be significantly higher than a year ago on Friday’s Cattle On Feed report, the feeder cattle market sits patiently, trending lower throughout Friday’s morning trade,” according to ShayLe Stewart at DTN.
Winter Livestock Auction in Dodge City, KS, sold 2,806 head and reported, compared to last week, feeder steers 500 lbs. to 975 lbs. sold $2 to $3 lower. No recent comparison on steers under 500 lbs., however a lower market was noted. Feeder heifers 500 lbs. to 900 lbs. sold $3 to $5 lower. No recent comparison on heifers under 500 lbs., however a lower market noted. Demand was moderate. Slaughter cows sold $2 to $3 lower. Slaughter bulls sold $5 to $7 lower. Benchmark feeder steers weighing 771 lbs. averaged $140.66. — Pete Crow, WLJ publisher
