Thursday markets
Cattle futures closed higher on stronger bids in the South cash market.
Live cattle futures closed slightly higher, with the October contract up 62 cents to $219.37 and the December contract 47 cents higher to $223.30.
“So far, live cattle futures are starting October looking a lot like September as the trading range continues,” wrote Cassie Fish, market analyst, in The Beef. “Feeder cattle futures are strong as they continue to catch a tailwind from yesterday’s bearish USDA corn stocks report. Feeders appear to have carved out a major low in August, but unlike live cattle futures are now trading at the highest level since July.”
Cash trade was active, with 19,539 head sold. Live steers sold for $217-221, and dressed steers sold between $345-350. On the formula side, 19,100 head averaging 947 lbs. sold for an average of $359.08.
“Prices in the North this week have eroded, with $219/cwt reported and $218/cwt rumored,” wrote Fish. “Dressed bids are as low as $342 when earlier week trade was $348 to $350. Because the South is tighter and has traded a few today at $226, optimism continues to be revived. This fall could see a record spread between North and South.”
Today’s slaughter is estimated to be 109,000 head, 19,000 head above last week.
Actual slaughter for the week ending Sept. 19 was 532,712 head. The average steer dressed weight was 979 lbs., up 2 lbs. from the prior week.
Boxed beef prices were lower on 117 loads, with the Choice cutout down $6 to $376.79 and the Select cutout $7.70 lower to $352.89.
Feeder cattle
Feeder cattle futures closed higher, with the October contract up $2.45 to $339.10 and the November contract $2.05 higher to $336.52.
The CME Feeder Cattle Index was up 26 cents to $338.03.
Corn futures closed slightly higher, with the December and March contracts up a penny to $5.02 and $5.16, respectively.
Kansas: Winter Livestock in Dodge City sold 3,000 head on Wednesday. Compared to the previous auction, steers over 700 lbs. sold steady to $5-10 higher. Heifers over 550 lbs. sold steady to $5-10 higher. Steers under 700 lbs. and heifers under 550 lbs. sold weak due to rain. Fifty-six heifers weighing 816 lbs. and 50 heifers weighing 924 lbs. sold $21 higher. Benchmark steers averaging 730 lbs. sold from $348.50-371, averaging $362.56.
Nebraska: Bassett Livestock in Bassett sold 2,055 head on Wednesday. Compared to the last auction two weeks ago, there were a limited number of comparable offerings of 1,000-1,050 lbs. steers traded $2-11 higher, while 950-1,000 lbs. heifers traded $3-6 lower. Benchmark steers averaging 717 lbs. sold for $377.
Oklahoma: OKC West in El Reno sold 5,938 head on Wednesday. Compared to the last auction, feeder steers sold $4-10 higher. Feeder heifers traded $2-7 higher. Benchmark steers averaging 727 lbs. sold for $346-365, averaging $356.59.
Wyoming: Torrington Livestock in Torrington sold 2,615 head on Wednesday. Compared to the last auction, no test on yearling steers, but yearling heifers traded $2-3 higher. Steer calves traded mostly steady, except fly-weight steer calves, which traded sharply higher than last week. Heifer calves traded mostly steady on comparable trades to last week. Benchmark steers averaging 779 lbs. sold for $367-381, averaging $377.54. — Charles Wallace, WLJ contributing editor
