Cattle futures moved higher over the week, while processing plant disruptions weighed on slaughter numbers.
Live cattle futures closed higher. The October contract gained about $4 to close at $219.07, and the December contract gained about $5 to close at $221.10.
Cash trade through Thursday totaled about 10,000 head. Live steers sold from $219-223, and dressed steers sold from $348-355.
Cash trade for the week ending Sept. 20 totaled 64,259 head. Live steers averaged $222.38, and dressed steers averaged $350.15.
Slaughter through Thursday totaled about 389,000 head, compared to 420,000 head a week earlier. Total slaughter for a week earlier is estimated at 529,000 head. Actual slaughter for the week ending Sept. 12 was 501,375 head. The average steer dressed weight was 977 lbs., up 4 lbs. from the prior week.
“It has not been business as usual in the Kansas cattle feeding and fed cattle processing business this week,” wrote Cassie Fish, market analyst in The Beef, on Thursday. “The disruption caused by ICE’s presence rippled through the region and resulted in heavy absenteeism, reducing throughput sharply.”
Slaughter for Tuesday was reduced to 100,000 head from the originally estimated 105,000 head.
“Given packer profitability, slaughter should have been 106k to 108k,” Fish said. “(Wednesday) was worse; slaughter reported at 94,000 head, down 16k head from where it was scheduled.”
Fed slaughter for the week will likely be reduced by 30,000 head or more. Concerns are also lingering for slaughter numbers for the next week too, Fish noted.
“Because there has been little media coverage of the production loss nor has it been heavily posted on social media, CME cattle futures response to this week’s real world developments today has been to trade both sides of steady except for lower October (live cattle),” Fish said.
Boxed beef prices closed higher. The Choice cutout gained about $4 to close at $376.12, and the Select cutout gained about 20 cents to close at $352.10.
“This past week the slaughter volume fell short of most estimates and will help stabilize box prices,” the Cattle Report wrote on Wednesday. “Profits continue in the nation’s processing plants as they have been able to hold input costs at bay aided by falling futures prices.”
The lean beef trim contracts continue to trade lower. The 50% lean trim futures closed sharply lower, down more than $40 on the September contract to $95 and down $43 on the October contract to $89. The 90% lean trim contracts were modestly lower, down about 50 cents on the September contract and down about $2 to $424.45 on the October contract.
Feeder cattle
Feeder cattle futures closed higher over the week. The September contract gained about $3 to close at $337.62, and the October contract gained about $7 to close at $331.75.
The CME Feeder Cattle Index lost about $6 to close at $336.98.
Corn futures traded slightly lower over the week. The December contract lost 3 cents to close at $5.27, and the March contract also lost 3 cents to close at $5.41.
Missouri: Joplin Regional Stockyards in Carthage sold 6,194 head on Monday. Compared to a week earlier, feeder steers under 600 lbs. sold $10-25 higher. Heavier weights sold mostly steady. Feeder heifers under 550 lbs. sold $5-25 higher, with heavier weights selling from $10 lower to $8 higher. Benchmark steers averaging 782 lbs. sold from $331-358, averaging $339.95.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 5,700 head on Monday. Compared to the previous sale, feeder steers over 800 lbs. sold steady to $4 higher and under 800 lbs. were lightly tested and sold steady to $4 lower. Feeder heifers sold $1-5 lower. Steer calves over 500 lbs. sold steady to $5 higher, and under 500 lbs. were lightly tested. Heifer calves sold $5-10 lower.
South Dakota: Sioux Falls Regional in Worthing sold 1,898 head. There were few comparable sales of yearling feeder steers and heifers, but they sold mostly steady. There was moderate to good demand of backgrounded yearlings and good to very good demand for weaned fall calves. Benchmark steers averaging 772 lbs. sold from $355.50-382.50, averaging $372.11. — Anna Miller Fortozo, WLJ managing editor
