(Federal-State Market News)

St. Joseph, Mo.

Aug. 28


This Week Last Week Last Year

475,200 405,900 420,800

Compared to last week, steers and heifers sold steady to 4.00 lower. Last Friday’s Cattle on Feed Report had July Placements marked at 111 percent of a year ago and the industry stood up and took notice. Monday’s CME Cattle Complex was under pressure from the time the bell rung at the open. Industry analysts knew that placements had been elongated and pushed off into the summer months, but were surprised to see that much of an increase. The Cattle Complex has been under pressure all week long and the September and October Feeder Cattle contracts were both 4.675 lower for the week. In addition, the October Live Cattle contract was 3.65 lower for the week.

The August contract that is going off the Board on Monday closed today at 103.225; below what fed cattle traded at this week. Futures convergence with cash cattle occurred as August came to a close.

There were 12 loads of fed cattle delivered on the futures contracts this month as they were tendered when the Board was in the 107.00 range. Negotiated cash fed cattle trade in Southern Plains traded 1.00 lower at 105.00 this week, while Nebraska dressed sales were mostly 2.00 lower at 167.00.

Silage choppers have been very busy this week in the Plains states. However, hay sales have been sluggish except in drought plagued areas of the country.

Hog prices slowly increased this week as the competing protein to beef has been undervalued in analysts’ eyes. Daily hog slaughter has rebounded to around 480K and Year-to-date slaughter is 1.4 percent above a year ago.

Grain markets found support this week with dry weather providing the majority of the strength to the market. Soybean markets were especially strong with traders growing concerned about the dry conditions across Nebraska, Iowa, and parts of Illinois.

December corn has retraced up to the highest prices seen in a month and a half.

Creighton University’s Rural Mainstreet overall index for August increased slightly to 44.7 from July’s 44.1. These numbers are below growth neutral of 50.0, but still well above April’s record low 12.1 and bankers in rural areas are still concerned about where the economy is moving.

Estimated slaughter under federal inspection this week was reported at a 654K, 2k more than last week, and 1K more than last year. Auction volume this week included 54 percent weighing over 600 lbs and 40 percent heifers.

Northwest Weighted Average Direct Feeder Cattle

Weekly Summary WA-OR-ID-UT

Aug. 28

This Week Last Week Last Year

3,086 500 925

Compared to last week: Feeder steers and heifers not tested on an FOB current delivery basis. Supply consisted of 44 percent over 600 lbs and 24 percent heifers. Unless otherwise stated prices are FOB weighing 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

94 Head: 800 lbs; 138.51 Current Del

55 Head: 985 lbs; 128.00 Current Del

70 Head: 850 lbs; 139.00 Sep Del

40 Head: 850 lbs; 140.00 Oct Del

250 Head: 650 lbs; 149.00 Nov Del

Feeder Steers Medium and Large 1-2

10 Head: 1000 lbs; 118.00 Current Del

100 Head: 1050 lbs; 124.00 Current Del

Feeder Holstein Steers Large 3

1740 Head: 325 lbs; 152.67 Jan Del

Feeder Heifers Medium and Large 1

70 Head: 725 lbs; 135.00 Current Del

4 Head: 975 lbs; 118.00 Current Del

38 Head: 1000 lbs; 114.00 Current Del

120 Head: 775 lbs; 135.00 Sep Del

95 Head: 830 lbs; 134.00 Oct Del

400 Head: 650 lbs; 139.00 Nov Del

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