Thursday markets
Cattle futures continued their weakness ahead of tomorrow’s Cattle on Feed report.
Live cattle futures closed lower, with the October contract down $2.80 to $215.65 and the December contract $3.95 lower to $216.25.
“Futures are down hard today and trading at a discount to last week’s cash of $222.82 and a discount to the cash low so far this year of $219.06/cwt,” wrote Cassie Fish, market analyst, in The Beef. “The market is back under the 40 day moving averages and the most recent rally now looks like a flash in the pan. After making a new high for the move on Monday, futures are now lower on the week and look poised to post a hook down.”
Cash trade was active, with 22,997 head sold. Live steers sold from $220-223, and dressed steers sold between $348-355. On the formula side, 20,600 head averaging 948 lbs. sold for an average of $362.09.
Today’s slaughter is estimated to be 107,000 head, 2,000 head lower than last week.
Actual slaughter for the week ending Sept. 5 was 534,523 head. The average steer dressed weight was 973 lbs., up 4 lbs. from the prior week.
Boxed beef prices were lower on 101 loads, with the Choice cutout down $3.66 to $372.15 and the Select cutout $2.69 lower to $351.88.
Pre-report estimates for Friday’s Cattle on Feed report indicate that feedlots with 1,000 head or greater in September will be at 101.8%. August placements are estimated at 97.3%, and August marketings are predicted at 96.2%.
Feeder cattle
Feeder cattle futures also closed lower, with the September contract down $3.65 to $334.82 and the October contract $5.27 lower to $324.37.
The CME Feeder Cattle Index was up $1.16 to $342.74.
Corn futures closed lower, with the December contract down 3 cents to $5.30 and the March contract 4 cents lower to $5.44.
Kansas: Winter Livestock in Dodge City sold 2,215 head on Wednesday. Compared to the previous auction, feeder steers and heifers over 650 lbs. sold $10-15 higher. Steers and heifers under 650 lbs. sold steady. Benchmark steers averaging 769 lbs. sold from $330-349.50, averaging $ 347.70.
Nebraska: Bassett Livestock in Bassett sold 2,040 head on Wednesday. Compared to the last auction two weeks ago, steers 1,000 lbs. sold $4 higher and 900 lbs. spayed heifers traded $11 higher. Benchmark steers averaging 723 lbs. sold for $373-388.50, averaging $384.63.
New Mexico: Clovis Livestock in Clovis sold 2,746 head on Thursday. Compared to the previous auction, steer calves sold higher, except 450-500 lbs., which were $7 lower. Feeder steers sold steady to $12 higher. Heifer calves sold higher, except 450-500 lbs., which were $10 lower. Feeder heifers sold higher. Benchmark steers averaging 713 lbs. sold from $315-327, averaging $326.54.
South Dakota: Hub City Livestock in Aberdeen sold 3,040 head on Wednesday. Compared to the last auction, steers 950-999 lbs. sold $10-12 higher and 1,000-1,099 lbs. traded $20-24 higher. Heifers not well compared. Good to very good demand for yearlings this week. Benchmark steers averaging 783 lbs. sold from $354.50-369.50, averaging $361.90.
Wyoming: Torrington Livestock in Torrington sold 2,462 head on Wednesday. Compared to the previous auction, feeder heifers traded $3-5 lower. A light test on calves this week, with flyweight steers trading mostly steady to higher. Benchmark steers averaging 732 lbs. sold for $372. — Charles Wallace, WLJ contributing editor
