Cattle futures traded sideways week over week. Cash trade volume remained light, while slaughter volumes have recovered from the previous weeks’ disruptions.
Live cattle futures closed modestly higher over the week. The October contract gained a little over $2 to close at $221.87, and the December contract gained 38 cents to close at $223.55.
Cash trade through Thursday totaled about 4,000 head. Live steers sold for $218, and dressed steers sold for $345.
“There’s still a chance that trade could be delayed until Friday as feedlot managers may hold out to see if packer demand improves as time passes,” wrote ShayLe Stewart, DTN livestock analyst, in her Thursday midday comments. “It’s unlikely packers will get too much more aggressive this week as they were able to secure just over 88,000 head in last week’s market.”
Cash trade for the week ending Oct. 4 totaled 88,019 head. Live steers averaged $219.01, and dressed steers averaged $345.
The national weekly direct beef type price distribution for the week of Sept. 28 to Oct. 5 was the following on a live basis:
• Negotiated purchases: $221.41.
• Formula net purchases: $227.63.
• Forward contract net purchases: $230.11.
• Negotiated grid net purchases: $232.95.
On a dressed basis
• Negotiated purchases: $346.27.
• Formula net purchases: $358.73.
• Forward contract net purchases: $376.63.
• Negotiated grid net purchases: $352.50.
Slaughter through Thursday totaled 424,000 head, compared to 410,000 head a week earlier. Total slaughter for a week earlier is estimated at 548,000 head. Actual slaughter for the week ending Sept. 26 was 486,910 head. The average steer dressed weight was 980 lbs., up 3 lbs. from the prior week.
“This week recovered slaughter volumes to a normalized 548,000 head—64,000 over the previous week and on one of the largest volumes this year,” the Cattle Report wrote on Thursday. “It fell 20,000 under last year. The threat of immigration arrests caused beef plant workers to stay at home last week but reassurances of safety from harassment brought them back to work.”
Boxed beef prices traded lower over the week. The Choice cutout lost about $2 to close at $374.85, and the Select cutout lost about a dollar to close at $351.73.
The lean beef trim futures contracts continue to trade lower week over week. The October 50% lean trim contract closed at $88 (-$1.30), and the October 90% lean trim contract closed at $418 (-$4.50).
Feeder cattle
Feeder cattle futures traded mostly sideways. The October contract lost 86 cents to close at $338.02, and the November contract lost a little over a dollar to close at $334.87.
“Until either the live cattle contracts or the fed cash cattle market trade higher, it’s likely that this slightly weaker tone will remain the theme for the feeder cattle market,” Stewart said.
The CME Feeder Cattle Index lost 16 cents to close at $337.87.
“The movement of cattle, both large and small, from Mexico to the U.S. is becoming more normalized as the second crossing of St. Teresa near El Paso opens,” the Cattle Report said. “Recent rains have hampered smooth, steady and consistent crossing volumes. Inspection on both sides of the border have been subjected to extra scrutiny as government people work to do their job and prevent new closings. All Mexican cattle are now required to have a RFID tag.”
Corn futures traded sideways. The December contract lost 2 cents to close at $5, and the March contract lost 4 cents to close at $5.12.
Colorado: Winter Livestock in La Junta sold 1,720 head on Tuesday. Compared to the last auction, feeder steers under 450 lbs. sold sharply lower and over 450 lbs. sold mostly sharply higher. Feeder heifers under 550 lbs. sold unevenly steady, and over 550 lbs. sold sharply higher. Benchmark steers averaging 783 lbs. sold for $335.
Missouri: Joplin Regional Stockyards in Carthage sold 7,000 head on Monday. Compared to a week earlier, feeder steers and heifers sold steady to $5 lower at the mid-session. A group of benchmark steers averaging 763 lbs. sold for $338.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 4,700 head on Monday. Compared to the previous sale, feeder steers over 800 lbs. sold steady to $2 lower and under 800 lbs. sold $3-8 lower. Feeder heifers sold mostly steady, and 600-700-lb. heifers sold $5 higher. Benchmark steers averaging 785 lbs. sold from $337-353.50, averaging $340.47.
South Dakota: Sioux Falls Regional in Worthing sold 1,568 head on Monday. Yearling feeder steers sold with higher undertones, and heifers were not well compared. A group of benchmark steers averaging 773 lbs. sold for $348.
Wyoming: Winter Livestock in Riverton sold 4,364 head on Tuesday. Compared to the last auction, this was the first major calf and yearling special offering of the fall run, with steers and heifers selling at higher overtones on strong buyer participation and demand. Benchmark steers averaging 738 lbs. sold from $351-385.25, averaging $381.17. — Anna Miller Fortozo, WLJ managing editor
