Wednesday markets
Cattle traders showed uneasiness as futures faced selling pressure after testing record highs.
“The combination of widespread pressure in most ag markets and most commodity markets on Wednesday is causing buyer apathy at this point,” DTN wrote in the Midday Livestock Comments column. “It is important to remember that a down day in the market does not indicate a lower-moving market in general, as the tone of the market still remains extremely aggressive with prices near all-time highs. Although it is never comfortable to watch, light to moderate corrections within a market are part of a healthy moving market, and many times are needed in order to draw additional buyers to the market over the coming days and weeks.”
Live cattle futures closed lower, with the October contract down $1.20 to close at $238.32 and the December contract 90 lower to $240.25.
Cash trade was moderate, with 4,357 head sold. Live steers sold for $242, and dressed steers sold between $383-385.
On the formula side, 31,700 head averaging 934 lbs. sold for an average of $387.95.
“With September wholesale beef demand off to a brisk start and packer margins black for now, two packers stepped out in the South this morning bidding $242/cwt, steady with last week’s southern trade,” Cassie Fish, market analyst, wrote for The Beef. “There was a little trade at $242 on the Fed Cattle Exchange, but because of the interest on a Wednesday morning, most sellers passed and expect higher money. Action in the North, where there are more market-ready cattle available, has been zilch and prices there may end up just steady.”
The national weekly direct beef type price distribution for the week of Aug. 25 to Sept. 1 was the following on a live basis:
• Negotiated purchases: $244.11.
• Formula net purchases: $243.02.
• Forward contract net purchases: $207.88.
• Negotiated grid net purchases: $247.52.
On a dressed basis:
• Negotiated purchases: $385.88.
• Formula net purchases: $383.55.
• Forward contract net purchases: $321.55.
• Negotiated grid net purchases: $386.15.
Today’s slaughter is estimated to be 120,000 head, 1,000 head above the previous week.
Boxed beef prices were higher on 103 loads, with the Choice cutout gaining $2.59 to $416.01 and the Select cutout up $1.56 to $387.73.
Feeder cattle
Feeder cattle futures closed lost over $2, with the September contract down $2.17 to close at $362.07 and the October contract down $2.20 to $361.50.
The CME Feeder Cattle Index was 14 cents higher to $365.52.
Corn futures were also lower, with the September and December contracts down a nickel to $3.97 and $4.18, respectively.
Missouri: Ozarks Regional Stockyards in West Plains sold 1,943 head on Tuesday. Compared to the previous auction, feeder steers traded steady to $6 higher, while feeder heifers were not well tested. Steer calves were steady, while heifer calves were steady to $5 higher. Benchmark steers averaging 762 lbs. sold between $360-370 and averaged $362.95.
Oklahoma: OKC West in El Reno sold 2,500 head on Tuesday. Compared to the last auction, steer calves sold unevenly steady. Heifer calves over 500 lbs. traded unevenly steady, while under 500 lbs. were $3-5 higher. Benchmark steers averaging 736 lbs. sold for $355-380, averaging $366.04.
Utah: Producers Livestock in Salina sold 672 head on Wednesday. Compared to the previous auction, feeder cattle sold sharply higher on good-quality calves and yearlings. Benchmark steers averaging 799 lbs. sold for $320. — Charles Wallace, WLJ contributing editor
