Thursday markets
Cash trade took off today as feedlots are holding out for higher prices, with live deals between $150-152 in the North and $148 in the South. The cattle complex closed primarily mixed.
Live cattle closed higher, with the October contract up 42 cents to $149.77 and the December contract up 32 cents to $151.67.
“The live cattle complex is keeping with its aggressive upward move as the market is elated to see feedlots pushing back against packers and demanding more money for fats,” ShayLe Stewart, DTN livestock analyst, wrote in the midday comments.
Cash trade was active, with 49,499 head selling between $148-152, averaging $150.89. Dressed steers averaged $235.91.
Cash trade was reported in most areas, with trade in the South at $148, $3 higher than
last week’s weighted average. A little scattered trade has been reported in parts of the North at $150-152, with dressed trade at $236.
On the formula side, 30,800 head averaging 899 lbs. sold for $236.84.
Slaughter for the day is expected to be 128,000 head, 1,000 head above last week.
Actual slaughter for the week ending Oct. 8 was 669,274 head. Dressed steer weights were 920 lbs.
Boxed beef closed mixed on 178 loads, with the Choice cutout up 23 cents to $253.62 and the Select cutout down 11 cents to $222.08.
USDA’s Weekly Export report for the Oct. 7-13 period showed net sales of 16,600 metric tons (mt), primarily for South Korea (7,100 mt), Japan (3,600 mt), China (2,000 mt) and Mexico (1,600 mt). Exports were 17,600 mt, primarily to South Korea (4,400 mt), Japan (4,000 mt), China (3,900 mt), Mexico (1,400 mt) and Canada (1,000 mt).
Feeder cattle
Feeder cattle closed mixed, with deferred contracts lower. The October contract was up 35 cents to $175.57, and the November contract was down 52 cents to $177.55. Deferred contracts were down 70-82 cents. The CME Feeder Cattle Index was up 74 cents to $172.77.
“Even though feedlots are flexing their power in the cash cattle market this week, feeders are thankful to see the cash market gaining momentum, but they’re equally as concerned about feed prices,” Stewart wrote. “Until harvest is completely done with, the feeder cattle market will continue to closely watch any changes in the grain sector.”
Corn contracts closed higher, with the December and March contracts up a nickel to $6.84 and $6.90, respectively.
Kansas: Winter Livestock in Dodge City sold 3,229 head Wednesday. Compared to the last auction, steers 575-700 lbs. sold steady. Steer calves 400-575 lbs. sold $6-10 higher. There were not enough feeder heifers 550-900 lbs. for a market test. However, a lower trend was noted. Heifer calves 400-550 lbs. sold steady to $5 higher. A group of steers averaging 767 lbs. sold for $173.
Nebraska: Huss Livestock in Kearney sold 1,808 head Wednesday. Compared to the previous auction, steer calves over 500 lbs. sold $3-6 higher, and heifer calves over 400 lbs. sold steady to $2 higher. Benchmark steers averaging 751 lbs. sold for $190.25.
Oklahoma: OKC West in El Reno sold 6,631 head Wednesday. Compared to the previous auction, feeder steers sold $2-5 higher. Feeder heifers traded mostly $5-8 higher. Weaned steer calves traded mostly $6-9 higher, and heifer calves sold $5-7 higher. Unweaned bawling calves were steady to mostly $3 lower. Benchmark steers averaging 787 lbs. sold between $173.50-180, averaging $177.10.
South Dakota: Hub City Livestock in Aberdeen sold 4,183 head Wednesday. Compared to the last auction, the best test was on yearling steers 850-900 lbs., which sold steady to $2 higher, with other weight classes of yearling steers not well compared. The best test was on yearling heifers 800-900 lbs., which sold $3 higher, and 901-1,000 lbs. sold steady to $2 higher. Benchmark steers averaging 781 lbs. sold between $175-185.25 and averaged $178.33.
Wyoming: Torrington Livestock Feeder Cattle Auction in Torrington sold 4,489 head Wednesday. Compared to the last auction, yearling steers and heifers traded mostly steady, with a few instances of $2 higher on load lots. Steer calves traded unevenly steady. Heifer calves also traded unevenly steady. Benchmark steers averaging 726 lbs. sold between $180-189, averaging $187.54. — Charles Wallace, WLJ editor
