AND STOCKER CATTLE
(Federal-State Market News)
St. Joseph, Mo.
This week Last week 2017 (Hd)
462,900 254,400 404,200
Compared to last week, calves and yearlings sold fully steady to 5.00 higher. Last week’s higher fed cattle market and continued good demand for calves and yearlings with active bidding have helped to keep the uptrend intact.
Several auctions especially in Missouri noted that many calves that normally come to town in the fall are finding their way to the auction earlier as pasture conditions are deteriorating due to drought conditions.
The market continues to be very active on loads of yearlings especially in desirable flesh conditions that every cattle feeder loves to buy.
The past couple of weeks CME cattle futures have started the week with losses as it seem to be the path of least resistance and then having some recovery later in the week.
Cattle futures have been very vulnerable and very fluid in moving one direction or the other; cattle contracts seem to be reflecting caution or wanting to err on the side of caution. Lately the breaks in the cattle futures are happening quicker than the rallies.
The grain market over the last couple of weeks was starting to find some stability, with dry areas around the globe. That was until Friday’s Crop Production report was released with corn production forecast at 14.6 billion bushels, down less than 1 percent from last year, with yields expected to average 178.4 bpa, up 1.8 bpa, from last year with an estimated 81.8 million acres to harvest.
Soybeans were forecast at 4.59 billion bushels, up 4 percent from last year with yields expected to average 51.6 bpa up 2.5 bpa from last year.
This week’s crop conditions have corn rated at 71 percent good to excellent, compared to 72 percent last week and 60 percent a year ago. Despite cattle futures whip-sawing back and forth a large corn crop looming ahead has many producers wanting calves and yearlings to feed or background, especially farmer feeders.
Western Video held its two-day auction Aug. 6 and 7 in Cheyenne, Wyo., and sold a few over 60,000 head of feeder cattle with very active bidding; there was 2125 hd of 950-990 lb steers from the Northcentral states averaging 963 lbs that sold with a weighted average price of 147.25 for current delivery, 185 hd of NHTC steers weighing 810 lbs dropped the gavel at 173.50 for October delivery and over 1800 head of steer calves also from the Northcentral states weighing 400-450 lbs averaging 415 lbs sold with a weighted average price of 220.83 for October delivery.
Beef demand remains on solid ground with plentiful supplies still at hand has the market content to trade in a sideways trading pattern maneuvering on rallies and breaks in the futures until we work through summer supplies.
Early week fed cattle sales have been limited but at lower prices.
Thursday in Nebraska and Western Cornbelt negotiated trade ranged from 175.00-179.00 with most sales 3.00 lower and live sales from 109.00-112.00, 2.00-3.00 lower.
Continued good clearance at the consumer level is still critical and having beef retail competing in grocery space alongside pork and poultry as Labor Day business lies ahead.
Choice boxed-beef closed Friday at 206.61 up .55 cents with Select closing .32 cents lower at 197.77 compared to last Friday’s close with choice at 204.75 and select at 197.09. Auction volume this week included 53 percent weighing over 600 lbs and 39 percent heifers.
Slaughter cattle trade in Nebraska on a live and dressed basis traded mostly 3.00 lower. Trade in Southern Plains 3.00 lower as well. Cattle futures had a down week and a vast majority of trades occurred in the north with plans for the cattle to be slaughtered in Southern plants. Packers tried to bid lower last week and their plans achieved fruition this week.
Boxed Beef prices as of Friday afternoon averaged 202.19 up 1.27 from last Friday. The Choice/Select spread is 8.84. Slaughter cattle on a national basis for negotiated cash trades through Friday afternoon totaled 85,572. Last week’s total head count was 164,656.
Midwest Direct Markets:
Live Basis: Steers and Heifers: 110.00-111.50. Dressed Basis: Steers and Heifers: 175.00, few 179.00.
South Plains Direct Markets:
Live Basis: Steers and Heifers 111.00.
Slaughter Cows and Bulls (Average Yielding Prices): Slaughter cows steady to 4.00 lower. Slaughter bulls mostly 1.00-2.00 lower. Packer demand moderate. Cutter Cow Carcass Cut-out Value on Friday afternoon was 168.61 down 2.79 from last Friday.
Direct Feeder Cattle
This week Last week Last year
1,054 347 1,050
Compared to Aug. 3: Feeder steers and heifers not well tested last week to give an accurate trend. Demand moderate. Cattle futures on the roller coaster this week. Slaughter cattle prices are down this week but auctions have been higher for the most part countering the lower CME Futures as well.
Supply included 90 percent over 600 lbs and 9 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
64 Head: Avg Wt 821 lbs; Avg Price 147.10; Current FOB
65 Head: Avg Wt 875 lbs; Avg Price 147.00; Current Del
20 Head: Avg Wt 915 lbs; Avg Price 136.00; Current Del
700 Head: Avg Wt 625 lbs; Avg Price 164.00; Sep Del
60 Head: Avg Wt 600 lbs; Avg Price 166.75; Nov Del
Feeder Heifers Medium and Large 1
30 Head: Avg Wt 775 lbs; Avg Price 142.00; Current Del
65 Head: Avg Wt 825 lbs; Avg Price 139.00; Current Del
50 Head: Avg Wt 575 lbs; Avg Price 156.75; Nov Del