Wednesday markets
Cattle markets were unable to find much momentum today, with all futures down and limited cash trade.
Live cattle futures saw declines, with the October contract down 65 cents to $123.10 and the December contract down 90 cents to $128.65.
Some cash trade took place today at a slim 15,318 head. Live steers sold between $123.50-127 and averaged $125.59. Dressed steers sold between $198-203 and averaged $202.91. On the formula side, a total of 32,000 head averaging 863 lbs. averaged $203.36.
The Fed Cattle Exchange listed 4,704 head for its weekly online auction, of which 1,642 head actually sold. Prices ranged from $123-124, and opening bids for other lots started at $122, while most reserves were set at $124.
“Fewer fed cattle will be available in Q4 than since 2017 and stay tight well into the winter and spring—the primary reason for high priced feeders, bullish cattle feeders and premium futures,” wrote Cassie Fish, market analyst, in The Beef.
“The current break in futures has been a big gut check as the question continues on repeat: “How much leverage can the cattle feeder claw back aided by tighter fed cattle supplies?”
USDA’s latest price distribution report for Aug. 30 through Sept. 6 shared the following for live basis price distribution:
• Negotiated purchases: $126.01.
• Formula net purchases: $127.33.
• Forward contract net purchases: $126.50.
• Negotiated grid net purchases: $125.64.
For dressed price distribution:
• Negotiated purchases: $201.61.
• Formula net purchases: $201.32.
• Forward contract net purchases: $191.63.
• Negotiated grid net purchases: $201.76.
Slaughter for the day is projected at 121,000 head, a few thousand head higher than the same time last week. Slaughter for the week to date is at a reduced 245,000 head due to the holiday weekend.
Boxed beef prices were down on 132 loads. The Choice cutout lost 33 cents to close at $334.86, and the Select cutout lost $3.73 to close at $298.17.
Feeder cattle
Feeders were in the red, with the September contract down 22 cents to $156.05 and the October contract down 77 cents to $159.27. The CME Feeder Cattle Index gained 10 cents to close at $157.47.
“Feeder cattle trade has a long way to go to regain the losses of the last couple weeks,” remarked Rick Kment, DTN contributing analyst, in his midday comments. “At this point, traders seem to be trying to find market stability rather than focus on any upside market support.”
Corn futures were mixed, with the September contract up 2 cents to $4.98 and the December contract down 4 cents to $5.10.
Kansas: Winter Livestock in Dodge City sold 1,730 head Wednesday. Compared to the sale a week earlier, feeder steers 600-1,000 lbs. sold $4-9 lower. Steer calves 400-600 lbs. sold $4-6 higher. Feeder heifers 700-950 lbs. sold unevenly steady, and heifers 600-700 lbs. sold $6 higher. Heifer calves 400-500 lbs. sold $5-10 higher. Benchmark steers averaging 765 lbs. sold between $146-152 and averaged $148.11.
Nebraska: Bassett Livestock Auction in Bassett sold 1,860 head Wednesday. Compared to two weeks earlier, 800-950 lb. steers sold $2-4 lower, and 850 lb. heifers sold steady. Benchmark steers averaging 769 lbs. sold for $166.50.
New Mexico: Roswell Livestock Auction in Roswell sold 366 head Tuesday. Compared to the week prior, there was no accurate comparison on steer and heifer calves or feeders due to limited comparable sales. A group of benchmark steers averaging 694 lbs. sold for $146. — Anna Miller, WLJ managing editor
