Thursday markets
Live cattle futures started the day higher but closed mixed, with the 2022 delivery months the strongest ahead of the Cattle on Feed report on Friday. The Cold Storage report showed the supply of beef 7.7 percent lower than a year ago.
The October live cattle contract was down 5 cents to $123.22, and the December contract was up 7 cents to $128.62. Contracts for delivery in 2022 traded 30-87 cents higher.
“Traders are starting to focus on Friday’s Cattle on Feed report,” Rick Kment, DTN contributing analyst, wrote in his midday comments. “Early estimates point to a 1 percent drop in placements during August compared to 2020. But this estimate has the widest range between survey recipients, which could bring additional volatility to the market. Given the amount of early placements this year, it is quite possible placements could be much lower than estimated, which could spark aggressive market gains early next week.”
Cash trade was moderate, with 8,431 head selling between $122-123. The USDA reported cash trade has been mostly inactive in the Texas Panhandle, Nebraska and the western Corn Belt. “Wednesday was the last full report market in all regions with weak sales in the North between $123-125 and dressed sales mostly $198 or a dollar weaker,” the Cattle Report wrote. “In the South, prices were steady to firm with live sales from $124-$124.25.” On the formula side, 24,700 head averaging 887 lbs. sold for $203.
Slaughter for today is projected to be 114,000 head, 6,000 head below last week.
Boxed beef prices were again lower on 155 loads, with the Choice cutout down $2.23 to $305.60 and the Select cutout down 51 cents to $274.99.
USDA’s National Agricultural Statistics Service released the Cold Storage report yesterday showing the supply of beef, pork and poultry in cold storage was 14 percent lower than a year ago. The total supply of beef in cold storage at the end of August was estimated at 414.9 million pounds, 7.7 percent lower than a year ago and 12.6 percent lower than the five-year average. The beef cuts in cold storage inventory were 30.7 million pounds, 2.2 percent lower than the extremely tight inventory last year and 17.9 percent under the five-year average.
Weekly export sales for the week ending Sept. 16 show net sales of 15,800 metric tons (mt), up 3 percent from the previous week and 17 percent from the prior four-week average. Exports of 18,200 mt were up 8 percent from the previous week and 1 percent from the prior four-week average. The destinations were primarily to Japan (5,000 mt), South Korea (4,700 mt), China (3,500 mt), Taiwan (1,400 mt) and Mexico (1,200 mt).
Feeder cattle
Feeder cattle also started the day higher, with the deferred months outgaining September, but closed the day mixed.
The September contract was higher 10 cents to $154.90, and the October contract was down 82 cents to $156.85. The CME Feeder Cattle Index was higher 92 cents to $154.49.
Corn contracts finished the day higher, with the December contract up 3 cents to $5.29 and the March contract up 4 cents to $5.37 a bushel.
South Dakota: Hub City Livestock in Aberdeen sold 1,609 head on Wednesday. Compared to the previous auction, there were different weight classes of steers and heifers than last week; steers 950-1,000 lbs. were steady to $2 lower, and heifers were not well compared. Benchmark steers averaging 719 lbs. sold between $157-163.50, averaging $161.20.
Nebraska: Bassett Livestock in Bassett sold 4,270 head on Wednesday. Compared to the last auction, steers 700-1,000 lbs. sold steady to $4 lower, with no comparable offerings for heifers. Benchmark steers averaging 733 lbs. sold between $164.50-170.25, averaging $168.32.
Oklahoma: OKC West in El Reno sold 7,413 head on Wednesday. Compared to last week, feeder steers and heifers traded steady to $3 higher. Demand was moderate to good. Steer and heifer calves that were long weaned with multiple rounds of shots traded mostly steady. Benchmark steers averaging 778 lbs. sold between $154-160.75, averaging $158.69. — Charles Wallace, WLJ editor
