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Daily Market Summary for August 16th

Updated Monday thru Friday around 4:00 PM CT

See Entire Summary Below


Daily Market Indexes & Trendlines
Indicators of cattle/beef market strength

10-Day Index & Trendline

Change from Previous Day: -0.54%
Change from 10 Days Ago: -2.31%
Change from 60 Days Ago: -0.65%​
   

60-Day Index & Trendline

Indexes track daily market values for the past 10 & 60 days.
Each daily value is the weighted total of the Gain/(Loss) for
12 market factors compared to the previous trading day.

 

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Weekly Market Summary

 

Daily Market Summary for August 16th

 
The markets were dominated this week by last Friday’s fire at Tyson’s beef processing plant near Garden City KS.  Cattle futures traded down the limit on Monday & Tuesday with many auctions quoting feeder & stocker cattle 6.00 to 12.00 lower while boxed beef surged higher.  Slaughter cattle traded on Wednesday in the south at 105.00, 5.00 lower than last week and up to 9.00 lower in the North at $172.00 on a dressed basis.  By mid-week, the news had been factored into the markets and both cattle futures and cash prices recovered some of the lost ground before weakening again on Friday.  Contributing factors for Friday’s weakness in cattle were limit-down lean hog futures and corn rebounding from early-week losses. Boxed beef never wavered and traded higher every day, closing 22.32 higher for the week.  With boxed beef substantially higher and slaughter cattle lower, the beef processors are well positioned for windfall profits.

 

Slaughter Cattle:

Friday trade was slow on light demand in all feeding regions. A few purchases in Nebraska traded at 106.00 and 172.00 dressed.  In Nebraska last week, live purchases traded mostly at 113.00 with dressed purchases from 180.00-185.00. For the previous week in the Western Cornbelt, live purchases traded from 113.00-115.00 with dressed purchases from 180.00-181.00. The latest established market in the Southern Plains was on Wednesday with live purchases at 105.00.

    

Negotiated Sales:

Confirmed: 5,042 --- Week Ago: 16,245 --- Year Ago: 35,409

 

Formula Net - Dressed Steers & Heifers

Head count priced today: 22,200
Weighted avg weight:             846
Weighted avg net price:   176.90

   

Alberta Beef Producers Daily Report: Alberta CA

Alberta direct cattle sales Thursday saw no new trade to report. Dressed bids of 234.00 delivered surfaced yesterday, bids are stronger than Wednesday but are 10.00-12.00 lower than last week. Packers are wanting to buy cattle at sharply lower money while producers seem willing to carry cattle into next week. Packers were indicating it is going to take longer to lift cattle. Yesterday there were reports some cattle would not be picked up until mid-September. Packers have bought very few cattle and sale volumes will be light.

     

Livestock Slaughter under Federal Inspection:                                  

                                   Cattle       Calves     Hogs          Sheep
Friday (est               114,000      2,000     454,000       5,000
Week ago (est)       118,000      2,000     451,000       5,000
Year ago (act)         118,000      3,000     444,000       7,000
Week to date (est) 577,000   10,000   2,354,000    37,000
Last Week (est)       594,000   10,000   2,303,000    36,000
Last Year (act)         592,000   12,000   2,301,000    40,000
Previous Day Estimated   Steers & Heifers --- Cows & Bulls                
                         Thursday           91,000                     25,000

                                

Boxed Beef: 

Boxed beef cutout values sharply higher on good demand and moderate offerings. Select and Choice rib, chuck, and round cuts steady to firm. Choice loin cuts higher while Select steady. Beef trimmings slightly lower on light demand and moderate offerings.
 
Cutout Values...                 Choice     Select
Current Cutout Values:     238.69     213.26
Change from prior day:       +2.57       +2.59
Choice/Select spread:          25.43
Total Load Count (Cuts, Trimmings, Grinds): 100

  

Cutter Cow Cutout: 176.45… +0.91

  

CME Feeder Cattle Index: 137.60… -1.55

  

Futures…

Live Cattle:
August: 99.92… -0.28
October: 98.05… -0.47
December: 103.52… -0.75
Feeder Cattle:
August: 134.57… -1.20
September: 132.37… -0.93
October: 132.85… -0.90
---
September Hogs: 62.00… -3.00
September Crude Oil: 54.87… +0.40
---
September Corn: 3.7100… +0.1025
September Soybeans: 8.6725… +0.0925
September Wheat: 4.7075… +0.0175
---
Grain Cash Bids:
Kansas City Corn: 3.85… +0.11
Kansas City Soybeans: 8.25… +0.09
Kansas City Wheat: 4.66… +0.02
---

Financial Markets:

Dow Jones Industrial Average: 25,886.01… +306.62
S & P 500: 2,888.70… +41.11
NASDAQ: 7,895.99… +129.37
U.S. Dollar Index: 98.19… +0.05

  

National Feeder & Stocker Cattle Summary

RECEIPTS:      Auctions      Direct    Video/Internet       Total
This Week       104,800        27,900            70,100            202,800
Last Week       154,600        54,100         241,400            450,100
Year Ago          149,500        53,700             7,100            210,300
  
Compared to last week, steers and heifers sold 5.00 to 10.00 lower. Uncertainty started the week as the news spread over the weekend of a fire that has halted slaughter at the Finney County, Kansas fed cattle operated by Tyson Foods. Some cattle auctions were either downright cancelled or saw reduced receipts as the industry took in the news over the weekend. Backgrounders do like to market cattle before the Labor Day holiday in August and some may be forced to wait until the market finds footing which could be after their historical marketing time period. Cattle buyers did have bids from feedyards, however most wanted to buy at lower prices early week as they did not know when the CME Cattle Complex slide would come to an end. When the CME Cattle Complex opened on Monday morning, futures locked limit lower (-3.00 on Live Cattle and -4.50 on Feeder Cattle). Expanded limits were instituted for Tuesday; trading was down drastically again with Live Cattle down 4.47 to 4.95 and Feeder Cattle down 5.05 to 6.68. Traders did want to get some business done and they did have an opportunity to do it.
 
Wednesday brought expanded limits again and the more nearby Live Cattle futures were lower, while the more deferred futures were 0.60 to 1.97 higher on the day. Feeder Cattle futures appeared to need a correction and were 4.63 to 6.75 higher on the day. When the dust settled for the week, the August Live Cattle contract was down 8.58 while the next five Live contract months were down 6.05 to 8.70. Feeder cattle contracts were 4.33 to 6.08 lower on the week. The main concern that caused all the back and forth was “How will the industry try to absorb near 6,000 head per day for the foreseeable future?” Even though feedyards have been pulling cattle forward, the reduction of around 6 percent of the fed cattle slaughter capacity will put a wrench into the current marketing of fed cattle supplies.
 
On Wednesday, Tyson executive toured the devastated plant and vowed to get back to business in a methodical and timely fashion. A takeaway that the industry was looking for when the plant will be up and running. Company personnel were forthcoming in saying that it would be months, not weeks. As the reduction in fed slaughter happened this week, so does the meat production. Wholesalers and retailers that had been buying hand to mouth found sharply higher boxed beef values this week as the beef pipeline adjusts to the harsh reduction in production. Price jumps like this do not come along very often and will be only temporary as adjustments take place in future. For the week, the Choice cutout closed 22.32 higher at 238.69, while Select was 19.45 higher at 213.26. Processors are wanting more Choice product to sell as the Choice-Select spread now stands at 25.43.
 
On Tuesday and Wednesday this week, the Choice Cutout rose 7.74 and 5.98 respectively, the largest single day gains since MPR data started in 2000. For reference, the harshest daily drop of 7.26 for Choice was recorded on January 31, 2014. With negotiated fed cattle trading at 105.00 in the Southern Plains this week, packer margins have skyrocketed as some analysts are estimating they have more than doubled in one week. Cattle Slaughter under federal inspection estimated at 651K for the week, 9K more than last week and 8K less than a year ago. As last week ended, there was some volatility in the grain markets expected as USDA was set to release a large amount of grain data and reports on Monday. The abnormal growing year has been a challenge to get acres reported correctly and many surprises have sprung up along the way with the Crop Production reports this year so far. Monday’s data release was no different as corn data, which the cattle industry follows faithfully, showed a reduction in planted acres and an increase in yield which caused grain futures and cash prices to tumble. Normally lower feed cost would seem like a good thing for the cattle industry. Auction volume this week included 49 percent weighing over 600 lbs and 38 percent heifers.

 

Thursday Auction Reports...

Pratt Livestock Auction - Pratt KS
                        This Week   Last Reported   Last Year
Total Receipts:  834                  4,126               0
Compared to last week: Short sale today. Feeder steers 700-850 lbs sold 2.00 to 4.00 lower. Feeder heifers and calves not enough comparable weights for a market test, lower undertone noted. Overall demand moderate, quality average. Using a limited test, slaughter cows sold 1.00 to 2.00 lower. Bulls sold mostly steady. Supply included: 88% Feeder Cattle (78% Steers, 22% Heifers); 12% Slaughter Cattle (86% Cows, 14% Bulls). Feeder cattle supply over 600 lbs was 100%.
  
Bluegrass Stockyards South - Stanford KY
                        This Week   Last Reported   Last Year
Total Receipts:   565                2,278                 0
Compared to last Thursday: Feeder steers under 500 lbs 5.00-8.00 higher, over 500 lbs 2.00-4.00 lower, Feeder heifers steady to 3.00 lower, Good to moderate demand for feeder classes. Slaughter cows and bulls steady to 2.00 lower, Good demand for slaughter classes. Supply included: 78% Feeder Cattle (35% Steers, 4% Dairy Steers, 47% Heifers, 14% Bulls); 21% Slaughter Cattle (83% Cows, 17% Bulls); 2% Replacement Cattle (40% stock Cows, 40% Bred Cows, 10% Bred Heifers, 10% Cow-Calf Pairs). Feeder cattle supply over 600 lbs was 29%. Groups of 20 head or more Steers 29 BLK 686 LBS 144.25
  
Lucedale Livestock Auction - Lucedale MS
Receipts     This week    725       Last Week    702
Compared to last week slaughter cows trended Steady. Slaughter bulls trended 2.00 to 3.00 Higher. Feeder steers trended 2.00 to 4.00 Higher. Feeder heifers trended 2.00 to 3.00 Lower. Feeder consisted of 50 percent steers and 50 percent heifers. Receipts weighing under 600 lbs 68 percent over 600 lbs 12 percent. Total receipts were made up of 80 percent feeders, 10 percent slaughter cows and 10 percent Pairs/Replacements.
   
Mitchell Livestock Auction – Mitchell SD
Market not reported due to limited feeder cattle receipts. Watch local listings for next feeder cattle sale.

  

Woodward Wtd Avg Cattle - Woodward OK
                        This Week   Last Reported   Last Year
Total Receipts:   1,983               4,850               0
Compared to last week: Feeder steers and heifers traded 2.00-4.00 lower. Steer and heifer calves were too lightly tested again this week for an accurate trend. Demand moderate. Fill average. Supply included: 100% Feeder Cattle (56% Steers, 44% Heifers). Feeder cattle supply over 600 lbs was 86%.

  

Tulia Livestock Auction - Tulia TX
                      This Week   Last Reported
Total Receipts: 701               1,381
Compared to last week: Feeder steers and heifers sold 2.00 to 4.00 lower on a limited test. Trade activity was light on light to moderate demand. Receipts were curbed as a drop in the market occurred to start off the week but the CME regained some footing by mid-week. Slaughter cows and bulls sold 3.00 to 5.00 higher. Supply included: 91% Feeder Cattle (37% Steers, 47% Heifers, 16% Bulls); 9% Slaughter Cattle (91% Cows, 9% Bulls). Feeder cattle supply over 600 lbs was 69%.

  

Greensboro Livestock Auction - Greensboro GA
                       This Week   Last Reported   Last Year
Total Receipts:  245                   273                  0
Compared to a week ago: Slaughter cows 6.00 to 8.00 lower, slaughter bulls mostly steady, feeder classes lightly tested, replacement cows lightly tested. Supply included: 58% Feeder Cattle (37% Steers, 39% Heifers, 24% Bulls); 36% Slaughter Cattle (98% Cows, 2% Bulls); 7% Replacement Cattle (100% Cow-Calf Pairs). Feeder cattle supply over 600 lbs was 3%.

    

Paris Stockyards - Pairs KY
                        This Week   Last Reported   Last Year
Total Receipts:  903                1,775                 0
Compared to last week feeder steers sold 3.00-5.00, feeder heifers sold 4.00-8.00 lower with light offering. Slaughter cows sold steady-2.00 lower, Slaughter bulls sold 2.00-4.00 lower. There was moderate demand for all classes of feeder cattle, with light offerings. As market, trends downward due to Tyson packing plant fire last week. Slaughter cows were steady to 3.00 lower. Slaughter bulls were mostly steady. Good demand for all slaughter classes of cattle. Supply included: 61% Feeder Cattle (41% Steers, 1% Dairy Steers, 42% Heifers, 16% Bulls); 12% Slaughter Cattle (89% Cows, 11% Bulls); 28% Replacement Cattle (8% Stock Cows, 35% Bred Cows, 17% Bred Heifers, 39% Cow Calf Pairs, 1% Bulls). Feeder cattle supply over 600 lbs was 25%.

    

Douglas County Livestock Auction - Ava MO
                      This Week   Last Reported   Last Year
Total Receipts: 562                 658                 0
Compared to last week, steers and heifers mostly 5.00 lower on a limited test. Slaughter cows and bulls steady to 2.00 lower. Demand moderate, supply light. Supply included: 78% Feeder Cattle (35% Steers, 56% Heifers, 9% Bulls); 16% Slaughter Cattle (89% Cows, 11% Bulls); 6% Replacement Cattle (100% Bred Cows). Feeder cattle supply over 600 lbs was 23%.
     
Farmers & Ranchers Livestock - Salina KS
                         This Week   Last Reported   Last Year
Total Receipts: 1,919               3,599                  0
Compared to last week: Steers 800-950 lbs 2.00-4.00 lower; 800 lbs and under lower undertone noted. Heifers 750-950 lbs 1.00-5.00 lower; 750 lbs and under lower undertone noted. Trade and demand moderate. Supply included: 100% Feeder Cattle (72% Steers, 28% Heifers). Feeder cattle supply over 600 lbs was 91%.

  

Benton County Sale Barn – Siloam Springs AR
                        This Week   Last Reported   Last Year
Total Receipts:  640               1,851                  0
Compared to last week: Feeders mostly 3.00-12.00 lower instances 15.00 lower on a light test in most classes. Slaughter cows 1.00 to 5.00 lower. Slaughter bulls 2.00 lower with an extremely high dressing bull selling for a 20.00 premium. Light run due to the sharp drop in prices early in week and hot weather. Supply included: 63% Feeder Cattle (16% Steers, 44% Heifers, 40% Bulls); 21% Slaughter Cattle (90% Cows, 10% Bulls); 16% Replacement Cattle (11% Stock Cows, 66% Bred Cows, 24% Cow-Calf Pairs). Feeder cattle supply over 600 lbs was 13%.
  
I-40 Livestock - Ozark AR
                         This Week   Last Reported   Last Year
Total Receipts:   710                  913                  0
Compared to last week: Feeder steers and heifers sold 2.00-9.00 lower. Slaughter cows and bulls sold 2.00 lower. Hot weather and uncertainty in futures market are hampering both buyer interest and cattle movement at this time. Supply included: 71% Feeder Cattle (29% Steers, 42% Heifers, 29% Bulls); 20% Slaughter Cattle (95% Cows, 5% Bulls); 9% Replacement Cattle (2% Stock Cows, 19% Bred Cows, 48% Bred Heifers, 31% Cow-Calf Pairs). Feeder cattle supply over 600 lbs was 17%.

  

Cullman Stockyard - Cullman AL
                        This Week   Last Reported   Last Year
Total Receipts:  728                  910                   0
Compared to one week ago: Slaughter cattle sold 2.00 to 4.00 lower. Feeder steers and bulls sold unevenly steady; feeder heifers sold 2.00 to 4.00 higher. Trade active with good demand on feeders. Replacement cattle sold mostly steady. Supply included: 81% Feeder Cattle (3% Steers, 50% Heifers, 47% Bulls); 12% Slaughter Cattle (87% Cows, 13% Bulls); 7% Replacement Cattle (100% Cow-Calf Pairs). Feeder cattle supply over 600 lbs was 9%.
   
Stoney Pike Livestock Auction - Logansport IN
                    This Week   Last Reported   Last Year
Total Receipts: 353               229                   0
Compared to last week, slaughter steers and heifers are sharply lower again today with low packer inquiry all week. Holstein slaughter steers were mostly steady. Slaughter cows were 1.00 to 7.00 higher with bulls trading 2.00 lower. All classes of feeder cattle were trending higher. There was a good offering of cow/calf pairs today with active buyer participation. Supply included: 20% Feeder Cattle (28% Steers, 3% Dairy Steers, 48% Heifers, 20% Bulls); 68% Slaughter Cattle (29% Steers, 14% Dairy Steers, 30% Heifers, 23% Cows, 3% Bulls, 1% Bullocks); 12% Replacement Cattle (5% Bred Cows, 95% Cow-Calf Pairs). Feeder cattle supply over 600 lbs was 32%.
  
Hope Livestock Auction - Hope AR
                        This Week   Last Reported   Last Year
Total Receipts:  520                 804                   0
Compared to last week: Feeder steers 4.00-6.00 lower. Feeder heifers 3.00-9.00 lower. Slaughter cows 2.00-4.00 lower. Slaughter bulls 4.00 lower. Supply included: 81% Feeder Cattle (47% Steers, 42% Heifers, 11% Bulls); 16% Slaughter Cattle (88% Cows, 12% Bulls); 3% Replacement Cattle (40% Bred Heifers, 60% Cow-Calf Pairs). Feeder cattle supply over 600 lbs was 17%
  
Cedar Livestock Auction - Cedar City UT
                       This Week
Total Receipts:  112
Demand was medium and activity was medium. There was a great deal of roping stock. Supply included: 66% Feeder Cattle (57% Steers, 34% Heifers, 9% Bulls); 29% Slaughter Cattle (60% Cows, 40% Bulls); 4% Replacement Cattle (100% Cow-Calf Pairs). Feeder cattle supply over 600 lbs was 43%.