Thursday markets
It’s a mixed day in the livestock complex, with live cattle trading higher and feeders lower, as markets digest a new 13-page USDA white paper outlining steps to strengthen the beef industry—none of which were viewed as bearish.
Live cattle futures closed slightly higher, with the October contract 67 cents higher to close at $239.72 and the December contract up $1.35 to $241.17.
Cash trade was light, with 1,109 head sold. Live steers sold for $239, and dressed steers sold between $368-370.
On the formula side, 32,400 head averaging 952 lbs. sold for an average of $377.77.
“There are some bids beginning to hit the market as packers have offered $238 live in Nebraska and $370 dressed in Nebraska,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments. “But at this time, no major sales have been reported. Asking prices are still not established in the North, but are now listed in the South at $243 plus. Packer interest could improve later this afternoon, but it’s most likely that trade is delayed until Friday, as feedlot managers are going to try to see prices trade higher again this week.”
Today’s slaughter is estimated to be 119,000 head, 1,000 head above the prior week.
USDA’s Weekly Fed Cattle Comprehensive report showed carcass weights at 946.7 lbs., 3 lbs. higher over the prior week. The quality grade was up 0.9% from the previous week to 84.1%.
Boxed beef prices were higher on 117 loads, with the Choice cutout $2.49 higher to $373.14 and the Select cutout up $1.13 to $354.74.
Although it’s unclear whether USDA will release the Cattle on Feed report on Friday, analysts have shared their pre-report estimates, projecting cattle on feed in feedlots of 1,000 head or more for October at 98.1% of last year, September placements at 91.4%, and September marketings at 96%.
Feeder cattle
Feeder cattle futures were lower, with the October contract $1.72 lower to close at $353.35 and the November contract down $2.77 to $361.45.
“The feeder cattle complex is still trading sorely lower, as it remains uneasy with the cattle complex being a hot ticket item this week for the President,” Stewart wrote. “The spot November contract is nearing the market’s 40-day moving average, which would be a bad threshold to cross for the market as it could signal more downward pressure.”
Corn futures closed in the green, with the December and March contracts up 5 cents to $4.28 and $4.41, respectively.
Kansas: Winter Livestock in Dodge City sold 2,120 head on Wednesday. Compared to the previous auction, steers and heifers under 500 lbs. from larger, reputable lots with multiple vaccinations sold steady, while smaller lots with no vaccinations sold $20-25 lower. Steers over 700 lbs. sold steady to weak. Heifers 600-650 lbs. sold $7 higher, while heifers over 700 lbs. sold $3-5 lower. Benchmark steers averaging 772 lbs. sold for $368-385.50 and averaged $378.19.
Nebraska: Huss Livestock in Kearney sold 2,295 head on Wednesday. Compared to the previous auction, steer calves under 700 lbs. and heifer calves under 650 lbs. sold steady to $15 lower. Eight weight yearling steers and heifers sold steady to $5 lower. Benchmark steers averaging 745 lbs. sold for $390-392 and averaged $390.66.
New Mexico: Clovis Livestock in Clovis sold 3,294 head on Wednesday. Compared to the last auction, feeder steers and heifers sold mostly steady to $3 higher. Benchmark steers averaging 718 lbs. sold for $338-358, averaging $344.56.
Oklahoma: OKC West in El Reno sold 7,395 head on Wednesday. Compared to the last auction, feeder steers sold $8-15 lower. Feeder heifers over 700 lbs. traded $5-10 lower, and under 700 lbs. were $15 lower. Benchmark steers averaging 779 lbs. sold for $364-380 and averaged $373.70. — Charles Wallace, WLJ contributing editor
