Reduced slaughter volumes continued to influence the cattle market over the week, helping boxed beef prices hold mostly steady despite typical seasonal pressure.
Live cattle futures closed sideways over the week. The October contract gained 23 cents to close at $219.30, and the December contract gained about $2 to close at $223.17.
Cash trade through Thursday totaled about 30,000 head. Live steers sold from $217-221, and dressed steers sold from $345-350.
“Dressed bids are as low as $342 when earlier week trade was $348 to $350,” wrote Cassie Fish, market analyst, in The Beef on Thursday. “Because the south is tighter, and has traded a few today at $226, optimism continues to get revived. This fall could see a record spread between north and south.”
Cash trade for the week ending Sept. 27 totaled 47,138 head. Live steers averaged $221.97, and dressed steers averaged $347.84.
“If northern cash fed cattle prices erode this month which looks likely, October contract will be forced to follow,” Fish said. “With diesel record high, hauling cattle from north to south is not the easy solution it once was in other similar markets.”
Slaughter through Thursday totaled 410,000 head, compared to 389,000 head a week earlier. Total slaughter for a week earlier is estimated at 484,000 head.
“This dramatic shortfall is specifically related to the disruption caused by ICE’s presence in western Kansas that resulted in heavy absenteeism at major fed cattle plants,” Fish said on Monday. “Today, at least one major plant is off to a slow start. Another plant in the region is expected to be dark on Wednesday due to the recurring logistics issue due to material handling backlogs.”
Actual slaughter for the week ending Sept. 19 was 532,712 head. The average steer dressed weight was 979 lbs., up 2 lbs. from the prior week.
Boxed beef prices closed mostly steady over the week. The Choice cutout gained less than a dollar to close at $376.79, and the Select cutout also gained less than a dollar to close at $352.89.
“The normal seasonal price weakness into October 1 is not occurring this year due to the slaughter loss last week and early this week,” Fish said on Tuesday.
Feeder cattle
Feeder cattle futures traded higher over the week. The October contract gained about $7 to close at $338.87, and the November contract gained about $7 to close at $336.35.
“The spot November contract is currently trading above it’s 100-day moving average—which is quite a bullish signal given that the complex has traded above that threshold since early in July,” wrote ShayLe Stewart, DTN livestock analyst, in her Thursday midday comments.
The CME Feeder Cattle Index gained just over a dollar to close at $338.03.
Corn futures traded lower. The December contract lost 25 cents to close at $5.02, and the March contract also lost 25 cents to close at $5.16.
Iowa: Russell Livestock in Russell sold 2,091 head on Monday. Compared to the last auction held two weeks earlier, steers under 750 lbs. sold $3-20 higher and steers over 750 lbs. sold mostly $9-27 lower. Heifers under 700 lbs. were not well compared and heifers over 700 lbs. sold $9-24 lower. Benchmark steers averaging 771 lbs. sold from $325-354, averaging $337.69.
Missouri: Joplin Regional in Carthage sold 8,500 head on Monday. Compared to a week earlier, feeder steers under 700 lbs. sold steady to $5 lower, with the exception of five-weight steers, which sold $5-20 lower. Steers over 700 lbs. sold steady to $6 higher. Feeder heifers sold steady to $10 lower. Benchmark steers averaging 779 lbs. sold from $332-363, averaging $347.85.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 6,000 head on Monday. Compared to the previous sale, feeder steers and heifers sold mostly steady. Steer calves sold mostly steady, and heifer calves sold $2-8 lower. Benchmark steers averaging 776 lbs. sold from $338-360, averaging $348.57.
South Dakota: Sioux Falls Regional in Worthing sold 2,277 head on Monday. Compared to the previous sale, yearling feeder steers sold $3-6 lower and yearling feeder heifers were not well compared. A group of fleshy steers averaging 699 lbs. sold for $338. — Anna Miller Fortozo, WLJ managing editor
