Thursday markets
Live and feeder cattle futures opened lower before rebounding as bulls worked to stabilize the market.
Live cattle futures were higher, with the October contract gaining $1.12 to $232.27 and the December contract $1.45 higher to close at $234.12.
“Again today, the live cattle complex is stepping forward and trading higher as traders seem to agree that the market has seen enough downward pressure for the time being,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments. “Thankfully, again today we see that trades are moving the contracts away from the market’s 40-day moving average, which thankfully is happening because a close below that threshold would likely signal more downward pressure.”
Cash trade was moderate, with 8,905 head sold. Live steers sold for $237-240, and dressed steers sold between $373-378.
On the formula side, 33,200 head averaging 938 lbs. sold for an average of $388.55.
“Although there are again bids beginning to renew in the countryside, no new trade has developed,” Stewart wrote. “So far this week, Northern dressed cattle have traded from $375 to $378, which is $5-8 lower than last week’s weighted average. Asking prices for cattle left to trade remain firm at $243 in the South and $378 plus in the North.”
Today’s slaughter is estimated to be 117,000 head, 5,000 head below a week earlier.
Actual slaughter for the week ending Aug. 30 was 566,581 head. The average steer dressed weight was 953 lbs., 1 lb. above the prior week.
Boxed beef prices were lower on 112 loads, with the Choice cutout down $4.85 to $400.79 and the Select cutout lost $3.73 to $379.95.
Feeder Cattle
Feeder cattle also saw triple-digit gains, with the September contract $2.02 higher to close at $355.22 and the October contract up $1.95 to $352.35.
The CME Feeder Cattle Index lost 39 cents to $365.47.
Corn futures closed higher, with the September contract up a penny to $3.99 and the December contract 2 cents higher to $4.19.
Kansas: Winter Livestock in Dodge City sold 658 head on Wednesday. Compared to the last auction, feeder steers and heifers over 600 lbs. were not well tested, but a softer undertone was noted. Steers and heifers under 600 lbs. sold steady to $10 lower, with several lots of small packages that were unvaccinated. A group of steers averaging 770 lbs. sold for $347-361, and averaged $352.66.
Nebraska: Huss Livestock in Kearney sold 4,151 head on Wednesday. Compared to the last auction two weeks ago, steers over 800 lbs. sold steady to $10 lower and heifers over 800 lbs. sold $10-20 lower. Benchmark steers averaging 783 lbs. sold for $381.50.
Oklahoma: OKC West in El Reno sold 7,130 head on Wednesday. Compared to the previous auction, feeder steers sold $2-7 lower. Feeder heifers traded $2-7 lower, except 600-700 lbs. were $5 higher. Steer and heifer calves sold $15-20 lower. Benchmark steers averaging 733 lbs. sold for $365-381, averaging $376.60. — Charles Wallace, WLJ contributing editor
