NATIONAL FEEDER & STOCKER CATTLE SUMMARY – WEEK ENDING 08/17/2024
By USDA-MO Dept of Ag Market News
RECEIPTS: Auctions Direct Video/Internet Total
This Week: 117,900 61,800 54,300 234,000
Last Week: 94,100 28,600 100,100 222,800
Year Ago: 133,400 31,000 102,200 266,600
Compared to last week, feeder steers and heifers sold mostly steady to 5.00 higher, with instances 8.00 to 10.00 higher where the previous week’s losses were more egregious.
Demand was moderate to good this week as feeder cattle buyers were somewhat cautious again as cattle futures ended the week sharply lower wiping out any early week hopes of recovery and marking the third week in a row for losses. That weakness in the Cattle Complex left cattle feeders struggling to get cattle bought that fit into a rapidly declining futures contract.
The structure of the Live Cattle contract is concerning and confusing as the Aug contract leads all the months on the board when normally the winter and Apr contracts are dollars higher than the summer months. Cattle feeders have an opportunity currently to sell their finished cattle at a profitable level and are now concerned about taking on more inventory that look to lose according to what the Live Cattle futures contracts are predicting.
The supply of feeders was light to moderate as auction movement picked up a bit over the previous week as the extreme heat wave left and made for pleasant August temperatures. Mid-week rains were also welcomed in the mid-section of the country; however Northern Plains drought conditions are causing yearlings to start coming to town as the grass dries out and gets short. Spring-born calves have not made their way to the marketplace yet, however one could expect those unweaned calves to be coming later next month.
The Rural Mainstreet Index was below growth neutral for the 11th straight published month (50.0 being neutral). The latest month data (July) came in at 41.3, the second lowest for 2024 so far.
Live sales of negotiated cash fed cattle trade in the Southern Plains sold steady to 2.00 lower at 185.00. In Nebraska, live sales sold 3.00 lower at 190.00, while the dressed sales sold 4.00 to 7.00 lower at 298.00 to 301.00.
Choice boxed beef closed the week 4.74 higher at 317.45 while Select was 4.00 higher at 302.59 for the same period. Weekly Cattle Slaughter under federal inspection estimated at 602K, 11K more than last week and 15K less than a year ago.
Auction volume this week included 52% weighing over 600 lbs and 40% heifers.
