Thursday markets
Cattle futures closed triple-digit higher on limited cash trade.
“It’s Thursday, and after a week of consolidation, October and December live cattle futures and January feeder cattle futures have pushed to new highs for the move today,” wrote Cassie Fish, market analyst, in The Beef. “The market made its low on the opening and has been strong throughout today’s session.”
Live cattle futures closed higher, with the October contract up $2.05 to $225.95 and the December contract $2.12 higher to $227.25.
Cash trade was moderate, with 2,715 head sold. Live steers sold for $220, and dressed steers sold for $345-355. On the formula side, 19,700 head averaging 954 lbs. sold for an average of $358.69.
“It’s also been a week of very little negotiated fed cattle trade—1,124 head is all that’s been reported by USDA,” Fish wrote. “Slaughter has been fairly brisk this week and last week’s purchases by packers in the cash market modest. Packers appear to have given up live cattle inventory position and need to replenish. Yet bids this morning had remained below last week’s average prices. Just a moment ago, a major packer bid $226/cwt in the south, fully steady with last week and so far, no takers.”
Today’s slaughter is estimated to be 104,000 head, 5,000 head below last week.
Actual slaughter for the week ending Oct. 3 was 547,798 head. The average steer dressed weight was 983 lbs., up 3 lbs. from the prior week.
Boxed beef prices were lower on 101 loads, with the Choice cutout down $2.52 to $373.98 and the Select cutout down $5.85 to $352.62.
Feeder cattle
Feeder cattle futures closed higher, with the October contract up $2.42 to $343.37 and the November contract $3.50 higher to $341.95.
The CME Feeder Cattle Index was 5 cents lower to $341.42.
Corn futures closed lower, with the December contract down 2 cents to $4.78 and the March contract down 3 cents to $4.91.
Kansas: Winter Livestock in Dodge City sold 2,479 head on Wednesday. Compared to the last auction, feeder steers over 600 lbs. sold $10 lower because of below-average quality. Heifers over 750 lbs. sold $5-10 higher. Steer and heifer stocker calves sold sharply higher due to value-added activities of weaning, multiple vaccinations, and small-lot offerings. Benchmark steers averaging 724 lbs. sold from $345-366, averaging $349.73.
Nebraska: Huss Livestock in Kearney sold 2,956 head on Wednesday. Compared to the last auction, steer and heifer calves 400-600 lbs. sold unevenly steady and steer and heifer calves over 600 lbs. sold steady, while feeder steers and heifers 850-950 lbs. sold steady to $5 higher. Benchmark steers averaging 767 lbs. sold from $352-371, averaging $355.59.
New Mexico: Clovis Livestock in Clovis sold 2,863 head on Wednesday. Compared to the previous auction, steer calves 300-450 lbs. sold steady to $10 higher and 450-600 lbs. were lower. Feeder steers 600-750 lbs. sold higher. Heifer calves 300-500 lbs. were higher and 500-600 lbs. sold lower. Feeder heifers were steady to lower. Benchmark steers averaging 717 lbs. sold for $318-342, averaging $330.13.
Oklahoma: OKC West in El Reno sold 5,066 head on Wednesday. Compared to the previous auction, feeder steers sold unevenly steady, except for 900-1,000 lbs. traded $5-7 higher. Feeder heifers unevenly steady. Steer calves sold $5-15 higher. Heifer calves traded $10-20 higher. Benchmark steers averaging 729 lbs. sold for $345-357.50, averaging $352.54.
South Dakota: Hub City Livestock in Aberdeen sold 5,554 head on Wednesday. Compared to the last auction, yearling steers 950-999 lbs. sold steady to $2 higher, and 1,000-1,049 lbs. traded $5-7 higher, with instances up to $9 higher on a narrow comparison. Yearling heifers were not well compared this week. No price trend is available on calves, as this is the first sizable offering of the season. Benchmark steers averaging 714 lbs. sold for $371-375, averaging $372.80. — Charles Wallace, WLJ contributing editor
