AND STOCKER CATTLE
(Federal-State Market News)
St. Joseph, Mo.
This week Last week 2017 (Hd)
254,400 310,000 377,500
Compared to July 27: Steers and heifers sold steady to 2.00 higher. The auction supply of feeders was somewhat higher again this week even though we are in the dog days of summer.
Calves and yearlings alike found their way to market this week as condition and quality was quite variable throughout the country. The CME cattle complex was pretty bearish the first two days of the week, then on Wednesday found solid footing with triple-digit gains. Thursday brought slightly lower prices but Friday was another triple-digit up day to close the week all in the green. August Live Cattle closed the week 2.05 higher; October 1.53 higher, and December 1.35 higher. Feeder Cattle contracts also closed 0.27 to 1.67 higher for the front six months. Packers seem to have a pattern of buying a large amount of cattle one week and then getting closer to the knife the following week or two.
Now in the month of August, they have the ability to pull on the 150+K forward contracts reported on MPR.
It was appearing that this week they would need cattle after purchasing fewer cattle last week but with CME cattle futures whip-sawing back and forth, one must wonder whose favor it will end up in this time.
As of this writing, negotiated cash fed cattle trade has not occurred this week yet. Beef demand has remained on solid ground for a couple weeks now as the market has traded sideways on plentiful supplies.
Widespread drought areas have brought many mature cattle to auctions this year.
Year to date beef cow slaughter is 10.7 percent above a year ago and 12.7 percent above the previous five year average. Herd liquidation or culling is well upon the mid-section of the country’s cow-calf sector. In addition to mature cattle slaughter increasing, year to date heifer slaughter is 8.2 percent above a year ago and 9.0 percent above the previous five year average.
One might say the cow herd expansion has come to a screeching halt. Compared to last Friday, Choice closed the week 0.39 lower at 204.75 and Select closed 1.18 lower at 197.09, putting the Choice-Select spread at 7.66. Auction volume this week included 49 percent weighing over 600 lbs and 39 percent heifers.
Slaughter cattle trade remains at a standstill. Much like last week when trade finally occurred after 5 p.m. It seems we are in the dog days of summer as cattle futures stayed on the roller coaster. Beef prices held mostly steady. Packers looking to bid cheaper but feedyards not having any of that at the moment.
Boxed Beef prices as of Friday afternoon averaged 200.92 down .78 from last Friday. The Choice/Select spread is 7.66. Slaughter cattle on a national basis for negotiated cash trades through Friday afternoon totaled 16,496. Last week’s total head count was 73,132.
Midwest Direct Markets: Live Basis: Steers and Heifers: Limited few early 110.00.
Dressed Basis: Steers and Heifers: Limited few 176.00.
South Plains Direct Markets: Live Basis: Steers and Heifers Limited few early 110.00-110.25.
Slaughter Cows and Bulls (Average Yielding Prices): Slaughter cows steady to 1.00 lower. Slaughter bulls mostly steady.
Packer demand moderate. Cutter Cow Carcass Cut-out Value on Friday afternoon was 171.40 down 1.48 from last Friday.
Direct Feeder Cattle
This week Last week Last year
347 3,004 3,050
Compared to last week: Feeder steers and heifers not well tested.
Demand moderate. Cattle futures on the roller coaster this week.
Slaughter cattle prices slid slightly the previous week and once again feedyards and packers have yet to agree upon a bid. Supply included 31 percent over 600 lbs and 27 percent heifers. Unless otherwise stated prices are FOB weighting points with 2-3 percent shrink or equivalent and a 5-10 cent slide on calves and a 4-12 cent slide on yearlings from base weights. Current sales are up to 14 days delivery.
Feeder Steers Medium and Large 1:
107 Head: 700-730 lbs; 159.48; Current Del
145 Head: 600 lbs; 165.00 ; Oct Del
Feeder Heifers Medium and Large 1:
95 Head: 550 lbs; 155.00; Oct Del