The cattle complex was higher, buoyed by the prospect of steady-to-higher cash trade following weeks of decline. Through Thursday, live steers sold steady and dressed steers averaged $4 higher compared to the prior week.
Live cattle futures were higher, with the October contract up 77 cents to $178.02 and the December contract up $1.88 to $178.60.
Cash trade through Thursday was about 11,500 head. Live steers sold for $180, and dressed steers traded between $293-294.
Cash trade through Sept. 8 totaled 67,595 head. Live steers averaged $181.42, and dressed steers averaged $288.03.
“The negotiated fed cattle trade totals a little over 10k head as of this morning at generally steady money to last week, 3k steers yesterday averaging $181.34, which remains above the important February cash low of $180.35/cwt,” Cassie Fish, market analyst, wrote in her Thursday comments in The Beef. “The April cash low was taken out last week. The cash and futures market are converging at an important price—the $180 area.”
The national weekly direct beef type price distribution for the week of Sept. 2-9 was the following on a live basis:
• Negotiated purchases: $181.51.
• Formula net purchases: $186.67.
• Forward contract net purchases: $190.06.
• Negotiated grid net purchases: $189.61.
On a dressed basis:
• Negotiated purchases: $288.20.
• Formula net purchases: $294.98.
• Forward contract net purchases: $293.69.
• Negotiated grid net purchases: $306.15.
Slaughter through Thursday was estimated to be 485,000 head. Total slaughter for a week earlier is projected at 542,000 head. Actual slaughter for the week ending Aug. 31 was 616,790 head. The average steer dressed weight was 933 lbs., 2 lbs. above the prior week.
“The fed cattle portion of the weekly slaughter continues to make a larger percentage of the total slaughter than prior years, with cow slaughter of both dairy and beef cows in decline,” the Cattle Report wrote on Thursday. “Expectations for a larger cow slaughter have failed to develop. Beef production, however, continues strong in the face of smaller numbers because of heavier carcass weights. Carcass weights on fed cattle continue to grind higher.”
Boxed beef prices were lower, with the Choice cutout down $4.33 to $307.18 and the Select cutout down $1.14 to $295.64.
“Interestingly, the round primal is trading below a year ago for the first time in 2024 and beef 90s settled $11 lower yesterday than a week ago,” Fish wrote. “Is this the beginning of a price correction in the lean beef complex? The lean complex has been the backbone of the fed cutout this year.”
Feeder cattle
Feeder cattle futures rose sharply, with the September contract up almost $5 to $242.05 and the October contract up over $5 to $239.75.
The CME Feeder Cattle Index was relatively unchanged, gaining 63 cents to $241.90.
Corn futures were lower, with the September and December contracts down 4 cents to $3.86 and $4.06, respectively.
Missouri: Joplin Regional Stockyards in Carthage sold 14,228 head on Monday. Compared to the sale held two weeks earlier, feeder steers sold from $5 lower to $6 higher. Feeder heifers sold $3-8 lower. Benchmark steers averaging 722 lbs. sold from $245-262, averaging $253.65.
Nebraska: Tri-State Livestock in McCook sold 2,436 head on Monday. An accurate comparison could not be made due to a lack of a recent auction. Benchmark steers averaging 734 lbs. sold for $250-259.75, averaging $254.05.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 10,154 head on Monday. Compared to the last sale two weeks earlier, feeder steers sold $1-5 lower. Feeder heifers over 800 lbs. were too lightly tested, but a firm undertone was noted. Feeder heifers under 800 lbs. sold $2-7 lower. Steer and heifer calves traded $5-10 lower. Benchmark steers averaging 725 lbs. sold for $241-254, averaging $246.91.
South Dakota: Hub City Livestock in Aberdeen sold 3,765 head on Monday. Compared to the last auction, steers 800-849 lbs. sold steady to $3 higher, 900-949 lbs. were mostly steady, and 1,000-1,099 lbs. traded $3-5 lower. Benchmark steers averaging 771 lbs. sold for $262-263.50, averaging $263.19. — Charles Wallace, WLJ contributing editor
