Tuesday markets
“The livestock complex is off to a brisk start to the new week as the market sees ample interest from traders and hopes to see fundamental support back the technical move,” ShayLe Stewart, DTN livestock analyst, wrote in the midday comments.
Live cattle closed higher, with the October contract up 50 cents to $145.05 and the December contract up 62 cents to $150.87.
Cash trade was nonexistent, with only 72 head sold—not enough for a market trend.
“Trading this week will be compressed into 4 days and packers will enter the week with a short inventory of cattle,” wrote the Ag Center in the Cattle Report. “Prices were softer this past week with some cattle owners unwilling to accept lower prices. In the north, most trades occurred from $143-$145—$1 softer than last week. Dressed sales were from $228-$232—$2-4 weaker. In the south, cattle traded at $141 also a dollar lower. The north/south spread has narrowed the past two weeks.”
On the formula side, 38,000 head averaging 877 lbs. sold for $229.99.
Through the week ending Sept. 4, only 75,260 head sold on the cash market. Live steers averaged $143.17, and dressed steers averaged $228.91.
Some slaughter did occur yesterday, with 3,000 head, and today’s slaughter is projected to be 127,000 head.
“Slaughter volumes for this past week were 638,000, down 40,000 from the previous week but up 17,000 from last year,” the Ag Center wrote.
Boxed beef prices were higher on 125 loads, with the Choice cutout up $1.05 to $260.47 and the Select cutout up 72 cents to $239.30.
Feeder cattle
Despite higher corn prices, feeder cattle closed up. The September contract was up 30 cents to $184.17, and the October contract was up $1.15 to $186.10. The CME Feeder Cattle Index was down $1.67 to $179.58.
“It’s helping feeders’ cause that the live cattle market is rallying too, which is what feeder cattle buyers are obsessively watching as they’re looking for upside potential on the backside of buying these feeder calves,” Stewart wrote.
Corn closed higher, with the September contract up 11 cents to $6.80 and the December contract up 10 cents to $6.76.
Iowa: Russell Livestock in Russell held their annual Labor Day cattle sale and barbecue and sold 6,151 head. Compared to the last auction, steers were mixed, with 450-500 lbs. $7 higher, 600-650 lbs. $6 lower and 650-700 lbs. $9.50 higher. All heifer weight groups were higher. Heifers 500-550 lbs. were $9.50 higher, and heifers 550-750 lbs. were almost $2 higher. Benchmark steers averaging 777 lbs. sold between $180-191.75, averaging $188.31.
Nebraska: Tri-State Livestock in McCook sold 1,145 head Monday. Tri-State Livestock held this special holiday sale because of the extreme drought in the trade area. Compared to the previous auction, steers 400-550 lbs. sold steady to $5 lower, and heifers weighing the same sold $3-5 lower. There were not enough yearlings for a market comparison. A group of steers averaging 862 lbs. sold for $182.50. — Charles Wallace, WLJ editor
