Wednesday markets
“Yet again, we see another day where the livestock complex plummets lower as outside pressures of the market’s economy continued to consume the largest portion of the market’s focus,” ShayLe Stewart, DTN livestock analyst, wrote in the midday comments.
Live cattle again closed lower, with the October contract down 52 cents to $143.05 and the December contract down 62 cents to $146.27.
Cash trade was active, with 36,734 head selling between $143-147, averaging $144.85. Dressed steers sold between $225.60-233 and averaged $228.85. In Nebraska, cash trade was steady at $144-145, and dressed purchases traded steady to $4 lower at $228, with a few up to $233.
“If the cash cattle market can successfully keep prices steady, then that bodes well for the entire cattle complex as it shows that strength remains in some of the market’s fundamentals,” Stewart wrote. “But given that packers have paid the market little to no attention Wednesday, feedlots are going to have their work cut out for them this week as packers will use the market’s weakness as a bargaining tool.”
On the formula side, 21,500 head averaging 874 lbs. sold for $230.40.
Slaughter for the day is expected to be 127,000, the same as last week.
Boxed beef prices closed lower on 165 loads, with the Choice cutout down 88 cents to $247.55 and the Select cutout down $2 to $219.21.
The Daily Livestock Report stated the Choice-Select spread had been steadily widening since the middle of March, except for a slight dip in August.
“This year, both grades of beef are seeing falling prices relative to where they were in March. Choice boxed beef has fallen 1.4% from mid-March to last week, while Select boxed beef has fallen 9%, creating a similar effect on the Choice-Select spread as last year,” the Daily Livestock Report wrote.
They continued to say the percentage of carcasses grading Choice has been below a year ago for the last five weeks, with the largest decline down 1.5% from last year.
Feeder cattle
Feeder cattle closed lower, with the September contract down 32 cents to $175.37 and the October contract down $1.12 to $175. The CME Feeder Cattle Index was down 36 cents to $177.46.
“As September looks at its final trading days of the month, cow-calf producers who have yet to sell their calves are scratching their heads, wondering when this pressure will ease and how much more it’s going to cost the market in the meantime,” Stewart wrote.
Corn closed higher, with the December and March contracts up 3 cents a bushel to $6.70 and $6.76, respectively.
Colorado: Winter Livestock in La Junta sold 2,448 head Tuesday. Compared to the last auction, yearling feeder steers sold steady to $2 higher, and feeder heifers were steady from two weeks ago. Steer and heifer calves sold $3-5 lower in a light test. Benchmark steers averaging 726 lbs. sold between $167-176, averaging $173.30.
Texas: Lonestar Stockyards in Wildorado sold 1,343 head Tuesday. Compared to the previous auction, feeder steers and heifers traded mostly $2-4 lower. Steer and heifer calves traded mostly $4-8 lower, with sharper declines noted on lighter weight calves. Benchmark steers averaging 779 lbs. sold between $169-171 and averaged $170.48.
Wyoming: Winter Livestock in Riverton sold 1,817 head Tuesday. Compared to the previous auction, yearling steers sold $4-5 higher, and heifers sold mostly steady. Feeder calves sold with higher overtones. A group of steers averaging 720 lbs. sold between $182-190, averaging $188.22. — Charles Wallace, WLJ editor
