(Federal-State Market News)

St. Joseph, Mo.

Aug. 23

RECEIPTS:      Auctions      Direct    Video/Internet       Total
This Week       87,400       64,900            65,900       218,200
Last Week      104,800       27,900            70,100       202,800
Year Ago       163,700       60,400           249,600       473,700

   Compared to last week, steers and heifers sold 1.00 to 5.00 higher.  Not as many 
calves were seen at auctions this week as yearlings.  Typically, backgrounders like 
to get their stock sold prior to the Labor Day holiday.  However, there was a kink 
thrown into the plans of some just a couple weeks ago, but most areas (exception 
being the Southern Plains) have plentiful grass around them, so holding on for a 
couple extra weeks didn’t add much cost to the bottom-line.  The supply of feeders 
was light this week with receipts much lower than normal.  Coupling this week’s 
receipts with last week, a new two-week non holiday low was set by only having 
192,900 head sold at weekly auctions. During the week, the CME Cattle Complex was 
showing some resilience and moving higher Monday through Thursday.  As negotiated fed 
cattle trading slowly started at a lackluster live price of 106.00 in the Southern 
Plains, both Live and Feeder Cattle moved sharply lower on Friday.  For the week, 
soon-to-be expiring August Live Cattle was 4.70 higher to close at 104.62.  The next 
four months were 0.60 to 1.35 higher on the week.  The August and September Feeder 
Cattle contracts were 2.78 and 0.88 higher on the week respectively.  The October to 
March contracts were 0.08 to 0.50 lower on the week.  With the uptick in early to 
mid-week futures, Wednesday and Thursday cattle auctions were met with good to very 
good demand.  On Wednesday at Winter Livestock in Pratt, Kansas a load of 961 lb 
steers sold at 142.75.  On Thursday at Valentine (NE) Livestock Auction, a load of 
900 lb red white face steers sold at 146.00.  For the week, the Choice cutout closed 
1.17 lower at 237.52, while Select was 0.55 lower at 212.71.  Beef markets reacted 
sharply higher last week as fears of reduced product availability initially led to 
the sharp rises in prices for Choice boxed beef, up 12 percent from the August 9 
close to the peak on August 21.  Much of this rise was attributed to buying for the 
coming Labor Day holiday (September 2) as retailers competed to acquire sufficient 
product to cover planned holiday promotions.  Prices have since begun to decline as 
buyer cover their needs and retreat from the market.  Cattle Slaughter under federal 
inspection estimated at 654K for the week, 3K more than last week and 12K more than a 
year ago.  The August 1 Cattle on Feed released today reported On Feed at 100 
percent; Placements at 98 percent and Marketings at 107 percent.  This makes the 
fourth month in a row that the On Feed number is the largest since the data series 
started in 1996.  Cold Storage Report for July was released Thursday with Total red 
meat supplies in freezers were up 3 percent from the previous month and up 1 percent 
from last year. Total pounds of beef in freezers were up 12 percent from the previous 
month but down 6 percent from last year. Frozen pork supplies were down 3 percent 
from the previous month but up 9 percent from last year.  Auction volume this week 
included 45 percent weighing over 600 lbs and 42 percent heifers.

Auctions Receipts:  87,400    Last Week 104,800    Last Year 163,700
Northwest Weighted Average Direct Feeder Cattle 
Weekly Summary WA-OR-ID-UT
Aug. 23
Receipts:  900      Last Week:  855    Year Ago:  965

   Compared to last week:  Feeder steers and heifers not well tested this 
week.  Supply consisted of 100 percent over 600 lbs. and 100 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 No Test

               Feeder Heifers Medium and Large 1
 Head   Wt Range   Avg Wt    Price Range   Avg Price  Delivery
  900      850       850       134.60         134.60   Sep-Oct FOB  

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