Feeder steers and heifers traded mostly $5-$10/cwt. through the early part of last week. As the week trudged along, prices were mixed from $3 lower to $5 higher, according to the Agricultural marketing Service (AMS). Prices in the Southeast were $1-$5 lower.
“Weather played a factor throughout many regions, with the Northern and Southern Plains seeing heavy rainfall and unseasonable, cooler temperatures,” AMS analysts say. This curtailed receipts throughout both regions.”
AMS analysts add that there was a larger volume of un-weaned and short-weaned calves, which were discounted heavily.
Except for 17¢ and 80¢ higher in the back two contracts, Feeder Cattle futures closed an average of $1.32 lower week to week on Friday.
Negotiated cash fed cattle trade was $5-$7 less at mostly $108-$110/cwt. Dressed trade was $8-$10 less at mostly$175.
Choice boxed beef cutout value was $5.31 lower week to week on Friday afternoon at $194.29/cwt. Select was $3.62 lower at $192.50. The Choice-Select spread of $1.79 ($1.43 a day earlier) was the narrowest since February.
Week to week on Friday, Live Cattle futures were an average of $2.11 lower through the front three contracts ($1.47 to $3.50 lower) and then an average of 68¢ lower (40¢ to 82¢ lower) except for 20¢ higher in the back contract.
Regionally, weighted feeder steer prices were $2.36-$6.64 lower week to week (AMS National Weekly Feeder and Stocker Cattle Summary).
“The downward price trajectory has resulted in lightweight calf prices falling below year-ago prices, while heavier calves and feeder cattle prices are close to year ago-prices,” explained Andrew P. Griffith, agricultural economist at the University of Tennessee, in his weekly market comments on Friday. “The price decline may bring some angst to some producers with fears of cattle prices collapsing similar to the fall of 2016. The fear of such a price decline is understandable, but market conditions in 2017 are not the same as 2016. Calf and feeder cattle prices steadily increased the first six months of 2017 and have held fairly steady throughout the heart of summer. Alternatively, calf and feeder cattle prices reached their apex in early spring of 2016 before steadily eroding the last eight months of the year. Calf prices will continue to soften as producers increase cattle marketings in the next two to three months, but the probability of a price collapse similar to a year ago is smaller rather than larger.”
Friday to Friday Change*
Weekly Auction Receipts
| Receipts | Auction | Change | Direct | Change | Video/Internet | Change | Total | Change |
| Aug. 18 | 148,900 | -11,300 | 41,500 | +12,700 | -0- | -215,200 | 190,400 | -213,800 |
CME Feeder Index
| CME Feeder Index | Aug. 17 | Change |
| $145.80 | – $0.16 |
*Thursday-to Thursday for CME Feeder Index
Cash Stocker and Feeder
North Central
| Steers-Cash | Aug. 18 | Change |
| 600-700 lbs. | $160.56 | – $2.36 |
| 700-800 lbs. | $154.05 | – $0.65 |
| 800-900 lbs. | $149.46 | – $ 2.48 |
South Central
| Steers-Cash | Aug. 18 | Change |
| 500-600 lbs. | $156.99 | – $4.87 |
| 600-700 lbs. | $149.41 | – $6.64 |
| 700-800 lbs. | $143.89 | – $2.82 |
Southeast
| Steers-Cash | Aug. 18 | Change |
| 400-500 lbs. | $150.45 | – $4.27 |
| 500-600 lbs. | $143.08 | – $5.06 |
| 600-700 lbs. | $137.42 | – $2.37 |
(AMS National Weekly Feeder & Stocker Cattle Summary)
Wholesale Beef Value
| Boxed Beef (p.m.) | Aug. 18 ($/cwt) | Change |
| Choice | $194.29 | – $5.31 |
| Select | $192.50 | – $3.62 |
| Ch-Se Spread | $1.79 | – $1.69 |
Futures
| Feeder Cattle | Aug. 18 | Change |
| Aug | $140.500 | – $1.275 |
| Sep | $140.025 | – $2.200 |
| Oct | $139.925 | – $1.675 |
| Nov | $140.725 | – $0.775 |
| Jan ’18 | $137.850 | – $1.050 |
| Mar | $135.825 | – $0.925 |
| Apr | $137.025 | + $0.175 |
| May | $136.850 | + $0.800 |
| Live Cattle | Aug. 18 | Change |
| Aug | $106.375 | – $3.350 |
| Oct | $105.900 | – $1.500 |
| Dec | $107.850 | – $1.475 |
| Feb ’18 | $110.675 | – $0.500 |
| Apr | $111.325 | – $0.750 |
| Jun | $105.825 | – $0.800 |
| Aug | $104.225 | – $0.925 |
| Oct | $105.750 | – $0.400 |
| Dec | $106.500 | + $0.200 |
| Corn futures | Aug. 18 | Change |
| Sep | $3.520 | – $0.086 |
| Dec | $3.656 | – $0.090 |
| Mar ’18 | $3.776 | – $0.088 |
| May | $3.840 | – $0.086 |
| Jul | $3.900 | – $0.084 |
| Sep | $3.946 | – $0.076 |
| Oil CME-WTI | Aug. 18 | Change |
| Sep | $48.51 | + $0.29 |
| Oct | $48.66 | – $0.31 |
| Nov | $48.82 | – $0.29 |
| Dec | $48.93 | – $0.30 |
| Jan ’18 | $49.03 | – $0.34 |
| Feb | $49.11 | – $0.35 |
Equities
| Equity Indexes | Aug. 18 | Change |
| Dow Industrial Average | 21674.51 | – 183.81 |
| NASDAQ | 6216.53 | – 40.04 |
| S&P 500 | 2425.55 | – 15.77 |
| Dollar (DXY) | 93.42 | + 0.36 |