Cattle trade was a bit slower last week, but prices were a bit stronger on fed cattle. Feeder cattle markets are doing well. Last Thursday, Superior Livestock Auction sold 500-600-lb. steers all day around the $145 mark for October delivery; the market appears to be set for fall calves.
Cattle slaughter was a bit slower; the estimated slaughter through Thursday was 474,000 head, 10,000 head behind last week’s pace, which saw 665,000 head run through packing houses. Analysts were expecting 680,000 head that week. Carcass weights were down 1 lb. from the week before—they averaged 874 lbs., which remains 38 lbs. over last year. Carcass weights are record setting as the backlog of finish cattle increases.
Beef markets were a little softer as Choice boxed beef fell 24 cents to $203.59 and Select fell 69 cents to $194.83 on 163 loads. The Choice-Select spread was $8.67. The grinding markets were stable with fresh 90 percent lean beef trading at $244 and the 50 percent lean a bit higher to $56.64. The latest cow beef cutout was $196.16.
As of Thursday, 78,037 fed cattle traded on the negotiated cash market with prices ranging from $90-100 live and $155-160 dressed. Packers were bringing in a lot of formula cattle last week, reducing demand on the cash market. The weighted average on live steers was $95.87 and dressed was $158.32.
Thursday, trade was slow on moderate demand in Nebraska. A few purchases were reported from $96-97 and $155-157, however there was not enough trade for an adequate market test. Trade was limited on light to moderate demand in all other regions.
The latest established market in any region was Tuesday with live purchases at $95 in the Texas Panhandle. On Tuesday in Kansas, live purchases traded from $94-95. The latest established live market in Nebraska was the week before from $95-96.
On Tuesday, dressed purchases traded from $157-160. The week before in Colorado, live purchases traded mostly at $96. On Tuesday in the western Corn Belt, live purchases traded from $99-100. The latest established dressed market in the western Corn Belt was on Monday at $160.
ShayLe Stewart, DTN market analyst, reported, “Feeder cattle contracts saw the strength rallying in the live cattle contracts and opted to hop on board and make a run while the support is circulating.
“August feeders are up $0.57 at $134.62, September feeders are up $0.37 at $136.05 and October feeders are up $0.42 at $137.20. The board’s midday jump should help afternoon sales throughout the countryside. Superior’s Weekend in the Rockies Sale is being hosted this year from the Texas office as restrictions from COVID-19 have made it difficult to travel.
“But even with that being the case, yearlings are rallying at that sale upwards of $5-6 stronger, continuing to add to the list of phenomenal feeder cattle sales this spring/summer.”
Winter Livestock Auction in Dodge City, KS, offered 1,546 head in last week’s sale and reported feeder steers 700-850 lbs. sold $4 higher and steers over 900 lbs. were not well tested.
Feeder heifers had no recent price comparison, however a sharply higher market was noted.
Breaker cows sold $1-2 higher. Benchmark steers weighing 777 lbs. averaged $136.25.
Bassett Livestock Auction in Bassett, NE, offered 8,006 head at their Annual BBQ Fall Calf and Yearling Auction. The day was started early at 8 a.m. with weaned fall calves followed by several load lots of Sandhill-raised yearlings.
Compared with two weeks ago, 500-699-lb. steers traded steady to $4 higher and 700-949-lb. steers traded $2-9 higher. For heifer offerings, 550-699 lbs. traded steady to $8 higher and 700-949-lb. heifers traded steady to $7 higher. Benchmark steers weighing 774 lbs. averaged $146.11. Demand was very good with high internet bidding and several buyers in the seats, but limited watchers.
OKC West in El Reno, OK, offered 6,795 head and reported feeder steers sold $5-8 higher and feeder heifers traded $4-6 higher. Demand was very good. Several large strings of cattle coming off grass were on offer.
Steer and heifer calves sold $2-5 higher, with a few instances of as much as $8 higher. Demand was very good despite extremely hot temperatures and no rain being in the forecast. Benchmark steers weighing 761 lbs. averaged $140.10.
Cassie Fish, market analyst, in The Beef opines about the future, “The first five months of 2020 happened at light speed. The uncertainty and rapid-fire nature of numerous extraordinary events resulted in markets moving so dramatically and so quickly that the ability to comprehend the long-term implications remains a challenge.
“Clarity about the global and domestic economy remains just as elusive as the outlook for the livestock industry. There are so many moving parts and remaining unknowns that certainty is not possible.” — Pete Crow, WLJ publisher
