AND STOCKER CATTLE
(Federal-State Market News)
St. Joseph, Mo.
This week Last week 2017 (Hd)
289,600 227,200 272,000
Compared to Sept. 7: Calves and yearlings sold fully steady to 5.00 higher with many major markets compared to two weeks ago coming back from last week’s Labor Day Holiday. Continued good demand remains for calves and yearlings with active bidding have helped to keep the uptrend intact.
We are entering the time of year where every week we are starting to see more calves coming to market. An abundant feed supply of corn and winter wheat grazing around the corner will help to keep the cost of gains low and demand very good for feeders.
Big Crops usually get bigger and corn and soybean yields will be no exception this year as Wednesday’s USDA crop report was released with corn production forecast at 14.8 billion bushels, up 2 percent from August and 2 percent higher from last year.
Corn acres for harvest are forecast at 81.8 million acres unchanged from August and down 1 percent from last year.
Corn yields are expected to average 181.3 bpa, up 2.9 bushels from August forecast and up 4.7 bushels from 2017. If realized will be the highest yield on record for the U.S.
Soybean production is forecast at a record 4.69 billion bushels, up 2 percent from August and 7 percent from last year. Soybean yields are expected to average a record high 52.8 bpa, up 1.2 bushels from August and 3.7 bushels from last year.
CME cattle futures responded with sharp triple-digit gains on Wednesday following aggressive losses in corn trade and again made sharp triple-digit gains on Friday which should benefit the fed cattle market.
The market continues to be active on loads of yearlings as in Imperial, Neb., on Tuesday sold near 450 hd of 800-850 lb yearling steers averaging 825 lbs sold with a weighted average price of 158.65, with an offering of 248 hd weighing 833 lbs at 159.50.
Cattle Country Video out of Torrington, Wyo., held their video auction on Tuesday selling near 18,000 head with active bidding including 240 hd of value added steers out of Wyoming for November delivery weighing 420 lbs at 224.00 and 240 head of the heifer mates averaging 410 lbs at 198.00.
The tone of the fed cattle market seems to be on a gradual improvement with very good beef demand from the consumer and exports. No doubt, this year packers and retailers have benefited far more than the cattle feeder has, as we work through plentiful summer supplies.
Slaughter levels continue to clip along with near 650,000 expected for this week. The box-beef cut-out continues to slip seasonally lower as it dropped sharply last week and continues to decline this week.
Looking at the post Labor Day retail landscape usually undergoes a transition from summer to cooler weather. While heat still lingers in many parts of the country beef items continues to hold onto their spot in the meat case and retail ads.
Choice boxed-beef on Friday closed .23 cents higher at 204.27 with Select .77 cents lower at 196.47 compared to last Friday’s close with Choice at 206.56 and Select at 197.09. Auction volume included 51 percent weighing over 600 lbs and 41 percent heifers.
Slaughter cattle trade not established late Friday afternoon in all major feeding regions. Boxed beef prices declined on the week but movement was good.
Boxed Beef prices as of Friday afternoon averaged 200.37 down 1.45 from last Friday. The Choice/Select spread is 7.80. Slaughter cattle on a national basis for negotiated cash trades through Friday afternoon totaled 25,536. Last week’s total head count was 127,667.
Midwest Direct Markets:
Live Basis: Steers and Heifers: N/A
Dressed Basis: Steers and Heifers: N/A
South Plains Direct Markets:
Live Basis: Steers and Heifers: N/A
Slaughter Cows and Bulls (Average Yielding Prices):
Slaughter cows and bulls mostly steady to 3.00 lower. Packer demand moderate. Cutter Cow Carcass Cut-out Value on Friday was 164.45 down 2.12 from last Friday.
Direct Feeder Cattle
This week Last week Last year
146 90 3,850
Compared to Sept. 7: A very light test this week again. Supply included 100 percent over 600 lbs and 21 percent heifers. Yards appear to be full most places putting some weight on lighter feeders.
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
81 Head: 825 lbs; Avg Price 155.88; Current Del
35 Head: 670 lbs; Avg Price 162.00; Oct Del Split Loads
Feeder Heifers Medium and Large 1
30 Head: 640 lbs; Avg Price 152.00; Oct Del Split Loads