Thursday markets
Live cattle closed mixed, while feeder cattle closed higher on weaker corn contracts. Cash trade picked up steam as dressed steers in Nebraska were $2.50 lower than last week, and live trades in the South were steady.
Live cattle closed mixed, with the October contract up 12 cents to $144.37 and the December contract down 42 cents to $149.65.
Cash trade was active, with 43,057 head selling between $140-145. Dressed steers averaged $225.99. Light to moderate trade developed in most areas, with dressed steers in the North at $226, mostly $2.50 lower than last week’s weighted average basis in Nebraska. Live trade in the Texas Panhandle and Kansas was mainly at $141, steady with the previous week’s weighted averages. Some asking prices remain firm, around $143-144 in the South and at $228-plus in the North.
On the formula side, 29,400 head averaging 883 lbs. sold for $230.78.
“Packers know in the weeks ahead they won’t be able to control the market as much as beef demand through September is usually slow and they’re still able to play off the shortened week thanks to Labor Day,” ShayLe Stewart, DTN livestock analyst, wrote in the midday comments. “But as the market gets closer to October and market-ready supplies run even thinner, feedlots will then sit in the driver’s seat of the cash cattle market, and prices are expected to get substantially higher.”
The national weekly direct beef type price distribution for the week of Aug. 29 to Sept. 5 was the following on a live basis:
• Negotiated purchases: $143.30.
• Formula net purchases: $147.39.
• Forward contract net purchases: $146.30.
• Negotiated grid net purchases: $145.90.
On a dressed basis:
• Negotiated purchases: $228.91.
• Formula net purchases: $232.13.
• Forward contract net purchases: $219.22.
• Negotiated grid net purchases: $231.69.
Actual slaughter for the week ending Aug. 27 was 677,878 head. Steer dressed weights were 904 lbs.
Slaughter for today is projected to be 127,000 head, 2,000 above last week.
Boxed beef prices were lower on 189 loads, with the Choice cutout down $3.33 to $258.01 and the Select cutout down $1.47 to $236.04.
While USDA will not release weekly export sales for the next week or two, the agency’s Foreign Agricultural Service released the monthly meat export results for July. Exports of fresh/frozen and processed beef in July were 101,594 metric tons, up 3.5% compared to a year ago. The combined value of beef exports for the month was $895.6 million, 5.7% higher than a year ago.
“The increase in the value of export could be due to world buyers willing to pay more and buy more (strong demand) as well as a change in the mix of products bought (more high value cuts). It is hard to argue with the results—the beef export business has been tremendously positive this year,” the Daily Livestock Report wrote.
Feeder cattle
Feeder cattle were higher due to lower corn contracts, with the September contract up 30 cents to $182.32 and the October contract up 45 cents to $184.40. The CME Feeder Cattle Index was up $1.17 to $180.31.
“Even with cash cattle trade developing in the North for $1-2 lower than last week’s business, the feeder cattle market should be able to keep its upward ascent as feedlots knew their chances of getting more money this week in the cash market was slim,” Stewart wrote.
Corn closed lower, with the September and December contracts down 2 cents a bushel to $6.74 and $6.68, respectively.
Kansas: Winter Livestock in Dodge City sold 2,844 head Wednesday. Compared to the last auction, feeder steers 600-1,000 lbs. sold steady to $2 lower. Steer calves 400-600 lbs. sold $5-10 higher. Feeder heifers 700-900 lbs. sold steady to $2 higher. Heifer calves 400-700 lbs. sold $5-10 lower. A group of steers averaging 738 lbs. sold for $178.
Nebraska: Bassett Livestock in Bassett sold 2,870 head Wednesday. Compared to the last auction, 850-950 lb. steers traded $2-6 higher. There were a limited number of comparable offerings for heifers, so a trend could not be determined. Benchmark steers averaging 772 lbs. sold between $184.50-198.50 and averaged $192.46.
Oklahoma: OKC West in El Reno sold 6,746 head Wednesday. Compared to the last auction, steer calves sold $6-10 higher. Feeder steers sold steady to $5 higher. Benchmark steers averaging 771 lbs. sold between $175.50-185, averaging $180.45.
Wyoming: Torrington Livestock in Torrington sold 6,595 head Wednesday. Compared to the last auction, feeder steers and heifers traded $3-7 higher. There was not a trend on calves right off the cow, but there was a very active market and higher demand for calves with spring and fall shots. Benchmark steers averaging 722 lbs. sold between $184-192 and averaged $188.83. — Charles Wallace, WLJ editor
