Thursday markets
Following weakness earlier in the week, live cattle futures were slightly higher today, with the October contract leading the way. Feeder cattle futures did not follow suit and traded slightly lower.
Live cattle futures closed higher today, with the October contract up 65 cents to $123.75 and the December contract up 15 cents to $128.80.
Cash trade was moderate, with 14,998 head selling between $123-127, averaging $125.03. Dressed steers sold between $197-200, averaging $198.44. On the formula side, 21,000 head averaging 879 lbs. sold for $203.23.
“Cash cattle trade continues to develop in the South through the morning with Kansas reported at $123 per cwt,” Rick Kment, DTN contributing analyst, wrote in the midday comments. “This is $1 per cwt lower than the bulk of Wednesday’s trade, but steady with last week’s price levels. Trade in the North has not yet developed following light to moderate trade Wednesday.
“Asking prices remain at $125 to $126 live basis in the South and $205 and higher dressed in the North. Trade Wednesday may have set the overall tone for the week with the bulk of trade in the South at $124 per cwt, $1 higher than last week, while Northern dressed cattle were reported at $203 per cwt. This is also generally $1 per cwt higher than last week’s average.”
Slaughter for today is expected to be 120,000 head, bringing the weekly total to 365,000 head—well below last week’s 476,000 head—due to the holiday-shortened week.
Boxed beef prices continue their decline this week on 132 loads, with the Choice cutout down $2.28 to $332.58 and the Select cutout down $1.72 to $296.45.
Feeder cattle
Feeder cattle started the day narrowly higher but closed lower, with the September contract down 30 cents to $155.75 and the October contract down 2 cents to $159.25. The CME Feeder Cattle Index was lower 64 cents to $156.83.
“The underlying bearish tone in the cattle complex continues to hold as September and October futures have fallen $8 to $9 per cwt over the last three weeks,” said Kment. “Following contract highs through the middle of August, traders have quickly backed away from these supportive price levels, although at this point it is uncertain if feeder cattle traders have been able to establish strong support levels at current price levels. This could add further weakness in the days and weeks to come as the bulk of fall sales of calves is about to begin and could put even further pressure on price levels in the short term.”
Corn futures were also lower, with the September contract down 2 cents a bushel to $4.96 and the December contract down a fraction of a cent to $5.10.
South Dakota: Hub City Livestock in Aberdeen sold 1,513 head on Wednesday. Compared to last week, there were different weight classes of steers and heifers, so an accurate price trend cannot be established. Good to very good demand for yearlings, featuring one string, a handful of loads and many packages. Benchmark steers averaging 739 lbs. sold between $154.25-158.50, averaging $156.34.
Oklahoma: OKC West in El Reno sold 4,429 head on Wednesday. Compared to the previous auction, feeder steers traded steady to $3 lower. Feeder heifers sold steady to $1 higher. Steer and heifer calves were lightly tested for an accurate trend. Benchmark steers averaging 770 lbs. sold between $155-157, averaging $155.50.
Kansas: Winter Livestock in Dodge City sold 1,815 head on Wednesday. Compared to last week, 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. Heifers 600-700 lbs. sold $6 higher. Heifer calves 500-600 lbs. sold $6 lower and 400-500 lbs. sold $5-10 higher. Benchmark steers averaging 784 lbs. sold for $159.10. — Charles Wallace, WLJ editor
