Thursday markets
Cattle futures closed mostly lower, as the lack of cash trade offered little direction.
Live cattle futures closed mixed, with the October contract up 27 cents to $221.87 and the December contract down 22 cents to $223.55.
“Tuesday’s grease fire futures rally is fading a bit as CME cattle futures sell off today, though the market is holding the 10-day moving average and is well above Monday’s low,” wrote Cassie Fish, market analyst, in The Beef. “Technical indicators look toppy, and the 100-day moving average stopped this week’s rally attempt. The market has been below the 100-day since early July.”
Cash trade was light, with 1,928 head sold. Live steers sold for $218, and dressed steers sold for $345. On the formula side, 25,500 head averaging 953 lbs. sold for an average of $360.36.
“Packers own a lot of cattle after last week’s big buy and this week’s negotiated fed cattle trade has been slow to develop,” Fish wrote. “For the week, as of this morning on USDA’s Mandatory Price Reporting, 1.7k head have traded, with yesterday at $216 to $220. Iowa reported a few steers at $220 delivered and heifers at $218 FOB. Bids have been scarce, but a $340/cwt dressed in the Corn Belt was rumored and included a discount on carcasses weighing more than 1,100 pounds. Last week’s dressed average was $345/cwt.”
Today’s slaughter is estimated to be 101,000 head, 8,000 head below last week.
Actual slaughter for the week ending Sept. 26 was 486,910 head. The average steer dressed weight was 980 lbs., up 3 lbs. from the prior week.
Boxed beef prices were lower on 131 loads, with the Choice cutout down 77 cents to $374.85 and the Select cutout $2.48 lower to $351.73.
Feeder cattle
Feeder cattle futures closed lower, with the October contract down 12 cents to $338.02 and the November contract 92 cents lower to $334.87.
The CME Feeder Cattle Index was 65 cents higher to $337.87.
Corn futures closed slightly lower, with the December and March contracts down a penny to $5 and $5.15, respectively.
Kansas: Winter Livestock in Dodge City sold 2,237 head on Wednesday. Compared to the last auction, steers over 600 lbs. and heifers over 650 lbs., both up to 850 lbs., sold $20 higher. Steers and heifers over 850 lbs. sold $5 higher. Several were off grass and in green condition. Steers and heifers under 650 lbs. sold steady, with a soft undertone noted. Benchmark steers averaging 729 lbs. sold from $374.25-385, averaging $376.17.
Nebraska: Huss Livestock in Kearney sold 2,391 head on Wednesday. Compared to the last auction, steer and heifer calves 400-650 lbs. sold unevenly steady and feeder steers over 900 lbs. sold $5-10 higher. Benchmark steers averaging 722 lbs. sold for $359-368, averaging $365.37.
Oklahoma: OKC West in El Reno sold 4,598 head on Wednesday. Compared to the previous auction, feeder steers sold unevenly steady. Feeder heifers traded steady to $4 higher. Benchmark steers averaging 774 lbs. sold for $337.50-351, averaging $343.85.
Wyoming: Torrington Livestock in Torrington sold 3,501 head on Wednesday. Compared to the last auction, feeder steers and heifers traded mostly steady on comparable trades to last week. Steer and heifer calves traded $3-8 lower. Benchmark steers averaging 790 lbs. sold for $364-380, averaging $371.93. — Charles Wallace, WLJ contributing editor
