The cattle market opened the week under pressure from news of a New World screwworm detection in a human. But as the Labor Day weekend approached, futures held mostly steady by Thursday afternoon.
Live cattle futures saw gains over the week but ultimately settled on mostly sideways by Thursday afternoon. The soon-to-expire August contract closed 35 cents lower over the week to $237, and the October contract gained about $2 to close at $236.92.
“Following Wednesday’s higher close, the live cattle complex is currently trading lower as traders seem to be keeping the market on hold, waiting to see what else surfaces from a fundamental sense before they push the contracts any higher,” said ShayLe Stewart, DTN livestock analyst, in her Thursday midday comments.
Cash trade through Thursday totaled about 8,000 head. Live steers sold from $240-245, and dressed steers sold from $385-392.
“It’s assumed that prices will trade steady if not a bit higher again this week as feedlot managers sit with enough leverage to simply roll their showlists over into next week if prices aren’t what they want,” Stewart said.
Cash trade for the week ending Aug. 24 totaled 79,192 head. Live steers averaged $244.31, and dressed steers averaged $386.09.
Slaughter through Thursday totaled about 462,000 head, compared to 450,000 head a week earlier. Total slaughter for a week earlier is projected at 547,000 head. Actual slaughter for the week ending Aug. 16 was 535,913 head. The average steer dressed weight was 943 lbs., 4 lbs. above the previous week.
“Processors are responding to the recent improvement in box prices by increasing slaughter volumes making plants more efficient and further improving their margins,” wrote the Cattle Report on Thursday. “They will be careful not to overdo the increases.”
Boxed beef prices continued to gain ahead of the holiday weekend. The Choice cutout gained about $7 to close at $414.41, and the Select cutout gained about $3 to close at $385.84.
“It’s generally expected that wholesale beef prices will decline seasonally post-Labor Day,” wrote Cassie Fish, market analyst, in The Beef on Thursday. “How much they break remains a point of debate.”
USDA released its latest Cattle on Feed report on Aug. 22. For July, total cattle and calves on feed in the U.S. totaled 10.9 million head, 2% lower than last year. Placements were 6% lower at 1.6 million head, and marketings were also 6% lower at 1.75 million head. Other disappearance totaled 51,000 head, 9% below 2024.
Feeder cattle
Feeder cattle futures saw momentum over the week, up more than $10 on the soon-to-expire August contract to $365.92 and up about $3 on the September contract to $361.80.
The CME Feeder Cattle Index soared higher, up $15 to $360.68.
“Feeder cattle demand remains utterly incredible, and with buyers showing no clear signs of slowing down, traders feel comfortable allowing the contracts to continue to trade higher even though the live cattle market is trading in the opposite direction,” Stewart said.
Corn futures traded sideways, up 2 cents on the September contract to $3.85 and down a penny on the December contract to $4.10.
Missouri: Joplin Regional Stockyards in Carthage sold 9,000 head on Monday. Compared to a week earlier, feeder steers sold $3-17 higher and feeder heifers sold $3-15 higher. Benchmark steers averaging 773 lbs. sold from $353-385, averaging $367.51.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 6,250 head on Monday. Compared to a week earlier, feeder steers and heifers sold $4-10 higher. Steer calves sold $10-20 higher, and heifer calves under 500 lbs. sold unevenly steady. Over 500 lbs. sold $8-12 higher. Benchmark steers averaging 765 lbs. sold from $358-377, averaging $370.68.
South Dakota: Sioux Falls Regional in Worthing sold 2,145 on Monday. Compared to a week earlier, feeder steers 850-900 lbs. sold $5-15 higher and 1,000-1,050 lbs. sold steady. Feeder heifers 750-900 lbs. sold $5-15 higher, and 900-950 lbs. sold steady. A group of benchmark steers averaging 810 lbs. sold for $361. — Anna Miller Fortozo, WLJ managing editor
