Thursday markets
Cattle futures closed lower as cash trade has weakened.
“While cash made a new low for the year today, CME cattle futures are still trading above the critical July 27 low which was made on the news the Mexican/U.S. border would reopen later this month to the importation of feeder cattle,” wrote Cassie Fish, market analyst, in The Beef. “For most active October LC, the market bottomed today about 300 points above that low. Futures completed their upside correction last Wednesday and have given up $10 since, basis the October.”
Live cattle futures closed lower, with the August contract down $4.35 to $226.22, the October contract $3.75 lower to $220.05 and the December contract down $3.35 to $219.45.
Cash trade was moderate, with 15,611 head sold. Live steers sold from $228-230, and dressed steers sold between $360-372. On the formula side, 24,300 head averaging 956 lbs. sold for an average of $375.52.
“It’s the negotiated fed cattle trade that has weakened rapidly in the last 24 hours and is leading the way down,” wrote Fish. “It began yesterday, cattle feeders in Nebraska selling cattle lower than last week, despite higher boxed beef prices. Northern cattle sold dressed as low as $365/cwt yesterday and as low as $362 today. Live trade occurred at $232 yesterday and already today at $230 before quickly making a new 2026 low of $229 and $228. Pretty obvious in hindsight the monster trade volume last week at $235 live and $370 dressed did not floor the market.”
Today’s slaughter is estimated to be 106,000 head, 1,000 head below last week.
Boxed beef prices were mixed on 113 loads, with the Choice cutout up $3.62 to $375.90 and the Select cutout down 57 cents to $349.24.
The lean beef trim contracts were unchanged for the day. The 50% lean trim August contract was $169, and the September contract was $159. The 90% lean beef trim August contract was $449, and the September contract closed at $442.
Feeder cattle
Feeder cattle futures also closed lower, with the August contract down $3.52 to $342.82, the September contract $2.15 lower to $337.20 and the October contract down $1.60 to $328.80.
The CME Feeder Cattle Index was $1.15 higher to $355.37.
Corn futures took back some of yesterday’s gains, with the September contract down 9 cents to $4.48 and the December contract 8 cents lower to $4.72.
Kansas: Winter Livestock in Dodge City sold 970 head on Wednesday. Compared to the last auction, feeder steers and stocker calves were too light to test. Heifers 750 lbs. sold steady to $5 higher and 4 loads of steers over 1,000 lbs. sold steady. Benchmark steers averaging 757 lbs. sold from $344-353, averaging $348.51.
Nebraska: Huss Livestock in Kearney sold 1,920 head on Wednesday. Compared to the last auction two weeks ago, yearling steers over 800 lbs. sold steady to $5 higher, with not enough yearling heifers from the last auction to establish a trend. Benchmark steers averaging 777 lbs. sold from $364-376, averaging $368.32.
New Mexico: Clovis Livestock in Clovis sold 1,399 head on Thursday. Compared to the last auction, steer calves 350-600 lbs. sold $5-20 higher and feeder steers 600-900 lbs. were steady to higher. Heifer calves 400-500 lbs. sold $5-15 higher, and feeder heifers 600-700 lbs. were $6 lower. Benchmark steers averaging 717 lbs. sold from $329-353, averaging $337.59.
Oklahoma: OKC West in El Reno sold 6,298 head on Wednesday. Compared to the last auction, feeder steers sold $10-15 lower. Feeder heifers sold $15-20 lower, except 850-900 lbs. were $5 higher. Benchmark steers averaging 787 lbs. sold from $333-358, averaging $344.67. — Charles Wallace, WLJ contributing editor
