AND STOCKER CATTLE
(Federal-State Market News)
St. Joseph, Mo.
This week Last week 2017 (Hd)
227,200 208,900 178,300
Compared to Aug. 31: Steers and heifers traded steady to 4.00 higher. Cattle auctions nationwide have put the Labor Day holiday week behind them and are ready to take on the fall runs of calves in the coming weeks. The supply of feeders was light this week as several early week auctions were dark in observance of the holiday and most others had limited offerings.
Demand for feeders was good although buyers are showing a stronger preference for cattle with good health programs as fall temperature swings become a concern.
According to the National Drought Mitigation Center, slow-moving bands of showers and thunderstorms moved over a vast area of the Midwest and dumped an abundant amount of rain, with widespread totals of 3 to 8 inches and locally some places received up to 15 inches.
The drought has improved some areas in the Midwest 1 to 2 drought categories as the region has encountered flooding in streams that are near or have eclipsed record levels. Only a few areas that missed out on the heavy rains remained unchanged.
Ranchers had almost become accustomed to the dry dirt when going to check cows, but have been snapped back to reality and now have to put overshoes on to check cattle.
The CME Cattle Complex traded on the positive side most of the holiday-shortened week. This week, the front six Live Cattle contracts gained 1.18 to 1.88, while the Feeder Cattle contracts were 2.80 to 3.83 higher. Coupled with last week’s increase, the front three Feeder Cattle contracts are 5.50 to 6.225 higher than two short weeks ago and auction feeder cattle have been following that trendline pretty closely.
The Live Cattle contracts have been the inverse of that. October 2018 through August 2019 Live Cattle contracts have been 3.22 to 3.675 higher in the past two weeks, however negotiated cash fed cattle have been lower.
As of this writing, negotiated cash fed cattle in the 5-Area has not been established yet this week after last week’s Southern Plains live sales were 2.00 lower at 107.00.
With Feeder Cattle contracts higher recently, cattle feeders were willing to put top quality calves in the feedyard.
On Monday at Torrington Livestock Commission Co. in Torrington, Wyo., a load of 922 lb Fancy steers with all the bells and whistles sold at 159.00.
On Wednesday at Bassett Livestock Auction in Bassett, Neb., a load of 950 lb steers sold at 156.25.
On Thursday at Valentine Livestock Auction in Valentine, Neb., a load of 749 lb steers sold at 176.75 and a load of 770 lb steers sold at 170.00.
USDA released July import/export numbers and were positive for the industry with July exports up 17 percent year over year with Year-to-Date totals being 15 percent larger as imports were 2 percent below a year ago.
For the week, Choice cutout closed 3.13 lower at 206.56, while Select was 4.18 lower at 197.09. Auction volume this week included 53 percent weighing over 600 lbs and 42 percent heifers.
Slaughter cattle trade just developing late Friday afternoon in Texas and Kansas and these 1.00 higher.
Market not yet fully established in Nebraska. Heavy rains in the north making for muddy conditions in the feedyard and thus having a negative effect on breakevens. Boxed beef prices declined on the week but movement was good. The bulls rose to the top on Friday and cattle futures closed higher.
Boxed Beef prices as of Friday afternoon averaged 201.82 down 3.65 from last Friday. The Choice/Select spread is 9.47. Slaughter cattle on a national basis for negotiated cash trades through Friday afternoon totaled 33,659. Last week’s total head count was 76,180.
Midwest Direct Markets:
Live Basis: Steers and Heifers: few 107.00 Dressed Basis: Steers and Heifers: few 169.00-171.00.
South Plains Direct Markets:
Live Basis: Steers and Heifers: 108.00
Slaughter Cows and Bulls (Average Yielding Prices): Slaughter cows and bulls mostly steady to 1.00 higher, bulls in Oklahoma sold 2.00-4.00 lower. Packer demand moderate. Cutter Cow Carcass Cut-out Value on Friday was 166.57 down 3.38 from last Friday.
Direct Feeder Cattle
This week Last week Last year
90 HD 2700 1600
Compared to Aug. 31: A very light test on steers and no test for heifers this week. Supply included 100 percent over 600 lbs and 0 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
90 Head: Avg Weight 850 lbs; Avg Price 143.00; Current Del