The market traded into the holiday weekend mostly uneventfully. Cash trade was limited on light demand, and futures were sluggish. Slaughter levels remained steady ahead of Labor Day, but boxed beef prices lost some momentum.
“More than anything, the market lacks interest and momentum at this point as everyone is anxiously awaiting Friday’s last bell to run into the weekend before summer is officially over,” wrote ShayLe Stewart, DTN livestock analyst, in her Thursday midday comments.
“After the three-day weekend passes, the market will likely become more focused and, at that point, the cash cattle and live cattle market stand a chance at heading higher once again to prices that we reached two weeks ago.”
Live cattle futures were mixed. The October contract closed $1.70 higher at $142.80, and the December contract lost $1.33 to close at $148.57.
Cash trade was slow to develop for the second week in a row. Through Thursday, fewer than 60,000 head sold. Live steers sold from $141-145, and dressed steers sold from $226-228.
Through the week ending Aug. 28, only 70,637 head sold on the cash market. Live steers averaged $145.14, and dressed steers averaged $232.94.
The national weekly direct beef type price distribution for the week of Aug. 22-29 was the following on a live basis:
• Negotiated purchases: $144.81.
• Formula net purchases: $146.22.
• Forward contract net purchases: $145.32.
• Negotiated grid net purchases: $143.92.
On a dressed basis:
• Negotiated purchases: $232.81.
• Formula net purchases: $230.63.
• Forward contract net purchases: $217.79.
• Negotiated grid net purchases: $229.76.
Slaughter through Thursday, just ahead of Labor Day weekend, was estimated at 498,000 head—24,000 head more than a year ago. Slaughter through a week earlier is projected at 678,000 head. Actual slaughter for the week ending Aug. 20 was 664,411 head.
Boxed beef prices saw their largest decrease in several weeks. The Choice cutout lost nearly $5.50 over the week to close at $258.07, and the Select cutout lost 95 cents to close at $236.59. The Choice/Select spread was $21.48.
“The rib primal decline is the primary contributor to this value loss,” said Cassie Fish, market analyst, in The Beef. “Seasonal weakness in wholesale beef prices in September is normal.”
Feeder cattle
Feeder cattle futures closed lower over the week. The September contract lost $1.10 to close at $183.15, and the October contract lost $1.17 to close at $184.35.
The CME Feeder Cattle Index gained $2.36 to close at $182.36.
Corn futures traded mostly sideways, with the September contract up a penny to $6.58 and the December contract up 8 cents, also to $6.58.
“The live cattle complex is following in the feeder cattle market’s upward blaze, but the cash cattle market’s inability to trade cattle for steady to better money doesn’t help propel the feeder cattle market at this point in time,” Stewart said. “After the Labor Day holiday passes, the market should be able to demand more interest and support.”
Kansas: Winter Livestock in Dodge City sold 3,726 head Wednesday. Compared to the last auction, steers 500-925 lbs. sold steady to $4 lower; however, five loads of thin-fleshed steers weighing 800-900 lbs. sold $3-4 higher. Heifers 500-900 lbs. sold unevenly steady. Benchmark steers averaging 729 lbs. sold between $175-183.85, averaging $178.61.
Missouri: Joplin Regional Stockyards in Carthage sold 5,092 head Monday. Compared to the last auction, feeder steers under 525 lbs. traded $5-12 higher, with heavier weights trading steady to $3 higher. Feeder heifers under 550 lbs. traded steady to $4 higher, with heavier weights trading steady. Benchmark steers averaging 722 lbs. sold between $184-196, averaging $191.20.
Nebraska: Tri-State Livestock in McCook sold 3,520 head Monday. Compared to the previous auction, steers were steady to $6 higher. Heifers were $10-20 lower, except 500 lbs., which were $7 higher. A group of steers averaging 846 lbs. sold for $180.50.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 7,500 head on Monday. Compared to a week earlier, feeder steers sold unevenly steady with a light test in most classes. Feeder heifers sold steady to $3 lower with a light test. Steer calves sold steady, and heifer calves sold steady to $4 lower. Benchmark steers averaging 776 lbs. sold from $173-179, averaging $174.43.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 1,753 head on Monday. Compared to a week earlier, feeder steers under 1,000 lbs. sold with lower undertones, while steers over 1,000 lbs. sold with steady to higher undertones. Feeder heifers sold with steady to lower undertones. Benchmark steers averaging 740 lbs. sold between $187-190.50, averaging $189.03.
Wyoming: Torrington Livestock in Torrington sold 1,832 head Wednesday. Compared to the last auction, there was no trend on feeder steers, and there were not enough receipts for an accurate trend. Feeder heifers traded mostly steady, with a few instances of $2 lower. Benchmark steers averaging 738 lbs. sold for $185. — Anna Miller, WLJ managing editor
