NATIONAL FEEDER & STOCKER CATTLE SUMMARY – WEEK ENDING 08/03/2024
By USDA-MO Dept of Ag Market News
RECEIPTS: Auctions Direct
Video/Internet Total
This Week: 106,300 48,600 221,300 376,200
Last Week: 143,400 37,000 193,900 374,300
Year Ago: 116,000 41,000 190,900 347,900
Compared to last week, feeder steers and heifers sold 1.00 to 5.00 lower. Demand was moderate to good, with the best demand seen early week.
The most jaw dropping news for the most part is the sharp losses on Monday, Thursday and Friday of this week in the CME Cattle Complex. Outside market influences spilled over into the Livestock Complex and deferred Feeder Cattle futures were 11.00 to 12.00 lower on the week, while Live Cattle futures were mostly 6.00 to 7.00 lower for the week. The Dow closed nearly 1500 pts lower from its’ mid-week high, while S&P was down around 200 pts. Even an overseas index dropped over 10 pct and their stocks suffered their worst crash since 1987.
Cash fed cattle managed to maintain their level, however cattle feeders had too many warning signs to ignore this week and slowed their approach to the feeder market. Cattle futures have been under great pressure, mainly from outside market factors, and this has influenced the feeder market at the auction. Cattle feeders had been incredibly bullish as the fed cattle market moved counter-seasonally, but now with the futures dropping off quickly they are suddenly becoming more cautious.
Yearlings are starting to be offered off grass and these are the most highly desired cattle as their gains are the best in the feedyard due to their light flesh condition.
Very hot weather this last week hampered receipts at Midwestern livestock auctions and ranchers are hoping they have enough grass to get through this month. Live sales of negotiated cash fed cattle trade in the Southern Plains sold 2.00 lower at 188.00, with a few up to 196.00 in Kansas. In Nebraska, live sales sold steady to 2.00 lower at 196.00 to 198.00, while the dressed sales sold mostly 2.00 lower at 310.00.
Cow beef continues to keep support beef prices as fed beef production has kept fed beef production is about the same even though the Steer and Heifer harvest has been cutback in the last three weeks. With the Cutter cow cutout now only about 5.00 lower than the Select cutout, this is the closest it has been since the summer of 2020.
The latest 3-week average of total cattle slaughter is less than 600K this week as ranchers are wondering just how many market- ready cattle are available to the marketplace, especially in the North Plains where there is around a 8.00 to 10.00 premium to the Southern Plains market.
Choice boxed beef closed the week unchanged at 313.77 while Select was 0.29 lower at 297.17 for the same period.
Weekly Cattle Slaughter under federal inspection estimated at 593K, 7K less than last week and 22K less than a year ago.
Year to Date Cattle Slaughter is currently 850K less than a year ago.
Auction volume this week included 58% weighing over 600 lbs and 40% heifers.
