(Federal-State Market News)

St. Joseph, Mo.

Sept. 6

RECEIPTS:      Auctions      Direct    Video/Internet       Total
This Week      106,800       58,100            14,700       179,600
Last Week      150,400       58,600           211,800       420,800
Year Ago       122,200       47,800            57,200       227,200

   Compared to last week, steers and heifers sold 3.00 lower to 2.00 higher, with the 
North Central region being on the positive side of neutral.  Weakness in the Southern 
Plains and the Southeast regions this week were widespread at auctions as demand is 
waning ahead of the fall calf runs.  Light receipts again with a few specials 
scheduled for this holiday shortened week.  Year to date total receipts on this 
report tallied 10.066 million head, 4.4 percent below a year ago and 0.4 percent 
below the previous five-year average. Historically, fall runs would start gearing up 
in the next couple of weeks, however the feeder market is not in any position to 
challenge any highs presently with fat cattle trade being quite weak in the last 
month.  With the front month of Live Cattle futures being under 100.00 and packers 
giving bids of 100.00, there isn’t much optimism surrounding cattle trade 
currently.  Weak Live Cattle futures complex is hanging heavy on every cattle 
feeders’ mind as they want to buy these yearlings and get them placed on feed, but 
breakeven prices are much higher than where current futures prices are at.  Outgoing 
fed cattle continue to lose money and the outlook going forward is very murky leaving 
cattle feeders very unsure of what they should do. The competition for feeder cattle 
is high despite the abundant negativity currently. Feeder cattle producers have been 
hesitant to offer yearlings for sale as they would like to see a higher market but 
with an abundance of grass, the need to pull cattle off and ship them to town has 
diminished. Feedlot backgrounders are just as hesitant to sell cattle but are also 
very concerned of where the market could go if the Live Cattle futures contracts 
would go lower yet.  Another negative influencing factor to be rumored or fact would 
be devastating to the backgrounding and cattle feeding sectors.  Harvesting hay in 
Nebraska has proven challenging this year with all the summer rain.  Now it is time 
for the silage choppers to have their difficulties as they have fired up this week. 
Playing in the muddy fields has tested the patience of all equipment 
operators.  Feedlots and/or custom choppers have not only utilized their front wheel 
assist tractors for packing, but also to aid in pushing or pulling trucks through the 
wet fields.  There are still a few choppers have old time silage wagons available for 
use and some of them have been spotted this week.  Cattle Slaughter under federal 
inspection estimated at 565K for the week, 79K less than last week and 6K less than a 
year ago.  If realized, the estimated harvest on Saturday of 101K would be the third 
largest Saturday in 10 years!  Packer margins are no doubt driving the number 
harvested, but packers realize that humans must have mental and physical downtime 
eventually.  For the week, the Choice cutout closed 4.46 lower at 227.31, while 
Select was 10.33 lower at 201.94.  Auction volume this week included 54 percent 
weighing over 600 lbs and 41 percent heifers
Northwest Weighted Average Direct Feeder Cattle 
Weekly Summary WA-OR-ID-UT
Sept. 6
Receipts:  1,082      Last Week:  925    Year Ago:  90

   Compared to last week:  Feeder steers and heifers lightly tested with a higher 
undertone noted. Supply consisted of 100 percent over 600 lbs. and 88 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
 Head   Wt Range   Avg Wt    Price Range   Avg Price  Delivery
   30      750       750       138.00         138.00   Current Del   
   45      825       825       133.00         133.00   Current Del  Split Loads
   57      875       875       132.00         132.00   Current Del   

                Feeder Heifers Medium and Large 1
 Head   Wt Range   Avg Wt    Price Range   Avg Price  Delivery
   30      650       650       136.00         136.00   Current Del   
   40      725       725       130.00         130.00   Current Del  Split Loads
   30      750       750       131.00         131.00   Current Del   
  700      850       850       124.00         124.00   Current Del   
   30      950       950       118.00         118.00   Current Del   

               Feeder Heifers Medium and Large 1-2
 Head   Wt Range   Avg Wt    Price Range   Avg Price  Delivery
  120      850       850       116.00         116.00   Current Del   

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