Thursday markets
Nothing scary or ghoulish in the market today, with cattle futures closing mixed as traders propelled the expiring October contracts sharply higher. What was frightening was a 10 lb. jump in the average steer dressed weight this week.
Live cattle futures were mixed, with the October contract up $4.60 to $193, the December contract down 12 cents to $186.30 and the February contract down 27 cents to $186.77.
Cash trade was moderate, with 10,552 head sold. Live steers sold between $189-190, and dressed steers sold for $296.
On the formula side, 38,700 head averaging 940 lbs. sold for an average of $302.81.
“Negotiated cash-fed cattle traded at mostly steady this week as packers were willing to add to inventory at steady cattle costs even though boxed beef prices have topped,” Cassie Fish, market analyst, wrote for The Beef. “Why? Because packer margins are still favorable and it’s a chance to bank another week of blank ink. Estimates are for another +620k weekly slaughter.”
Today’s slaughter is estimated to be 121,000 head, 3,000 head lower than a week earlier. Actual slaughter for the week ending Oct. 19 was 607,284 head. The average steer dressed weight was 960 lbs., 10 lbs. above the prior week.
“The USDA released actual slaughter and weight data moments ago and steer carcass weights were 960 pounds,” Fish wrote. “That’s a 10-pound week-over-week gain and a 33-pound year-over-year gain. The industry is well aware that feedlots have pushed days on feed all of 2024 and that’s one of the reasons, along with plenty of heifers on feed, that cattle on feed occupancy has hugged year-ago levels.”
Boxed beef prices were lower on 135 loads, with the Choice cutout down $1.84 to $317.60 and the Select cutout down $3.95 to $285.37.
“Choice boxes have now fallen about $7/cwt from their high last week, the chuck leading the way down, $16/cwt off its record high last week,” Fish wrote. “Only the rib, no surprise there, is holding its seasonal own.”
Feeder cattle
Feeder cattle futures were mixed, with the October contract up $1.02 to $251.97, the November contract down 12 cents to $245.37 and the January contract down 65 cents to $241.32. The CME Feeder Cattle Index was up $1.14 to $251.20.
Corn futures were mixed, with the December contract down a fraction of a cent to $4.10 and the March contract up a fraction to $4.26.
Kansas: Winter Livestock in Didge City sold 1,801 head on Wednesday. Compared to the last auction, feeder steers and heifers under 700 lbs. sold $10-20 higher. Steers over 700 lbs. sold steady to $5 higher, and there were not enough heifers for an accurate comparison. Benchmark steers averaging 776 lbs. sold for $236-250, averaging $245.81.
Nebraska: Bassett Livestock in Bassett sold 6,420 head on Wednesday. Compared to the last auction two weeks ago, steers 550-1,050 lbs. traded $4-15 higher. There were a limited number of comparable offerings for heifers, with 450-500 lbs. trading steady to $10 higher. Benchmark steers averaging 771 lbs. sold for $250-266.25, averaging $261.41.
Oklahoma: OKC West in El Reno sold 5,907 head on Wednesday. Compared to the last auction, feeder steers and heifers sold steady to firm on limited comparable sales. Steer and heifer calves that were weaned with at least one round of shots traded steady. Benchmark steers averaging 765 lbs. sold for $247-259, averaging $256.44. — Charles Wallace, WLJ contributing editor
