AND STOCKER CATTLE
(Federal-State Market News)
St. Joseph, Mo.
Oct. 9. 4
This Week Last Week Last Year
272,800 251,400 299,800
Compared to last week, steers and heifer calves sold 1.00 to 3.00 lower, while yearling steers and heifers sold steady to 1.00 lower. The calf runs have certainly started in areas that have been affected by dry conditions in recent weeks and months. The supply of feeders was moderate and demand was moderate to good, with the best demand on yearlings that are able to fit the April CME contract.
Vaccination programs and a 45- to 60-day weaning period are stressed by auctions this time of year as handsome prices for calves can be achieved. However, non-weaned calves will be met with steep discounts.
The CME cattle complex has been under pressure all week with the Feeder Cattle contracts being mostly 3.00 to 4.00 lower on the week.
The deliverable October Live Cattle contract has converged somewhat with the negotiated cash cattle price this week, even after there were 9 loads of cattle tendered for delivery in Worthing, S.D., on Monday, the first day possible to do so.
For the week, the October and December contracts were 1.50 to 1.70 higher, while the deferreds from April to October 2021 were 1.20 to 1.325 lower.
Weather continues to weigh on the markets. Most areas in the country have been designated as a drought area in some shape or fashion. Ranchers in Nebraska sold a considerable amount of calves this week as special calf sales were happening in the Central and Western parts of the state and they sold almost 29K feeder cattle this week at USDA reported auctions.
Dry conditions in the state have now put over 98 percent of the state in some sort of drought designation, the highest percentage since July 2013.
With that type of drought, ranchers take into consideration how much forage stocks are available and if it is worth it to keep open or short bred cows around to the next calving season. The question moving forward will be how many cows will leave the farm and go to harvest with a rancher exposed to paying more to keep cows around this winter than he has in the past. Some winter forage piles have started being used already and the calendar shows only the middle of October. Ranchers have seen old man winter rear his ugly head early sometimes.
Grain farmers are busy this time of year and this week has been no different as warmer than normal temperatures are helping with the maturation process of crops. As of Monday, soybean harvest was 38 percent complete (10 percent ahead of the five-year average) and corn harvest was 25 percent complete (1 percent ahead of the five-year average). Corn and soybean prices seem to have put in their yearly highs right at the peak of harvest.
Steer dressed weights were increased this week to 924 lbs, 5 lbs larger than the previous week and 26 lbs larger than last year. This was the first weekly decline in steer dressed weights since the middle of July.
This afternoon’s Choice boxed beef was reported at 214.06, 4.82 lower than last Friday’s close. Select cutout was reported at 199.82, 7.79 lower than last Friday’s close. Estimated cattle slaughter under federal inspection this week was reported at 637K, 28k less than last week, and 11K less than last year.
Auction volume this week included 48 percent weighing over 600 lbs and 42 percent heifers.
Northwest Weighted Average Direct Feeder Cattle
Weekly Summary WA-OR-ID-UT
This Week Last Week Last Year
592 305 760
Compared to last week: Feeder steers and heifers again not fully established for current delivery. Demand moderate. Supply included: 100% feeder cattle (79.7% steers, 20.3% heifers). Feeder cattle supply over 600 lbs was 100%. Unless otherwise noted, Feeder Cattle prices FOB based on net weights after a 2-3% shrink or equivalent, with a 4-8 cent slide > 600 lbs. Livestock reported this week originated from Idaho, Nevada and Oregon.
Steers-Medium and Large 1 (Per Cwt)
50 Head: 650 lbs, 149.00, Oct Del,
Steers-Medium and Large 1-2 (Per Cwt)
22 Head: 1050 lbs, 122.00 Current Del
270 Head: 850 lbs, 133.76 Current Del
Heifers-Medium and Large 1 (Per Cwt)
80 Head: 775 lbs, 138.00 Oct Del
Heifers-Medium and Large 1-2 (Per Cwt)
40 Head: 800 lbs, 127.00 Current Del
Please Note: The above USDA LPGMN price report is reflective of the majority of classes and grades of livestock offered for sale. There may be instances where some sales do not fit within reporting guidelines and therefore will not be included in the report. Prices are reported on an FOB basis, unless otherwise noted.