“Feeder cattle prices continue to follow the Board as the CME Live and Feeder cattle futures were mixed throughout the week, with Feeder Cattle seeing significant gains on Tuesday,” said analysts with the Agricultural Marketing Service (AMS) on Friday.
With that in mind, cash prices for steers and heifers started last week mostly steady to $5/cwt. higher, according to AMS. Prices were uneven at midweek, from firm to $4 lower and then as much as $7 higher for calves at the end of the week.
After 87¢ higher in spot Aug, Feeder Cattle futures closed and average of $2.80 higher week to week on Friday ($2.42 to $3.35 higher).
“Lightweight calf prices will seasonally be on the decline through November as many of those calves will be headed to grass either locally or in the Southern Plains,” explains Andrew P. Griffith, agricultural economist at the University of Tennessee, in his weekly market comments. “Weaning the spring calf crop early can allow a producer to capitalize on higher prices, but it will also result in marketing a lighter calf. Thus, producers with spring calving herds should be considering several options.”
Among the options Griffith cites: weaning straight off the cow; early-wean and market calves at lighter weights; early-wean or normal-wean and then precondition and background.
“The correct decision depends on the resources a producer has available,” Griffith says. “Now is the time to put pencil to paper to determine the best route.”
Cash fed cattle trade finished the week $2-$4 lower at mostly $106-$107/cwt. on a live basis. Dressed sales were $5-$7 less at $168-$170.
Choice boxed beef cutout value was $2.97 lower week to week on Friday afternoon at $191.32/cwt. Select was $4.20 lower at $188.30.
“There is a large number of market-ready slaughter cattle available, however, cash prices are now at or below breakeven levels. This may encourage cattle feeders to extend cattle time on feed in hopes that the end of the downward spiral is near,” AMS analysts explained.
After 42¢ lower in spot Aug, Live Cattle futures closed an average of $1.51 higher week to week on Friday ($1.02 to $2.07 higher).
Friday to Friday Change*
Weekly Auction Receipts
| Receipts | Auction | Change | Direct | Change | Video/Internet | Change | Total | Change |
| Aug. 25 | 129,300 | -19,600 | 41,100 | -400 | 48,300 | +48,300 | 218,700 | +28,300 |
CME Feeder Index
| CME Feeder Index | Aug. 24 | Change |
| $143.24 | – $2.56 |
*Thursday-to Thursday for CME Feeder Index
Cash Stocker and Feeder
North Central
| Steers-Cash | Aug. 25 | Change |
| 600-700 lbs. | $162.38 | + $1.82 |
| 700-800 lbs. | $150.56 | – $3.49 |
| 800-900 lbs. | $147.32 | – $ 2.14 |
South Central
| Steers-Cash | Aug. 25 | Change |
| 500-600 lbs. | $157.67 | + $0.68 |
| 600-700 lbs. | $149.32 | – $0.09 |
| 700-800 lbs. | $143.67 | – $0.22 |
Southeast
| Steers-Cash | Aug. 25 | Change |
| 400-500 lbs. | $153.15 | + $2.70 |
| 500-600 lbs. | $143.41 | + $0.33 |
| 600-700 lbs. | $135.30 | – $2.12 |
(AMS National Weekly Feeder & Stocker Cattle Summary)
Wholesale Beef Value
| Boxed Beef (p.m.) | Aug. 25 ($/cwt) | Change |
| Choice | $191.32 | – $2.97 |
| Select | $188.30 | – $4.20 |
| Ch-Se Spread | $3.02 | + $1.23 |
Futures
| Feeder Cattle | Aug. 25 | Change |
| Aug | $141.375 | + $0.875 |
| Sep | $142.925 | + $2.900 |
| Oct | $142.950 | + $3.025 |
| Nov | $143.150 | + $2.425 |
| Jan ’18 | $140.425 | + $2.575 |
| Mar | $138.575 | + $2.750 |
| Apr | $139.575 | + $2.550 |
| May | $140.200 | + $3.350 |
| Live Cattle | Aug. 25 | Change |
| Aug | $105.950 | – $0.425 |
| Oct | $106.925 | + $1.025 |
| Dec | $109.925 | + $2.075 |
| Feb ’18 | $112.375 | + $1.700 |
| Apr | $113.075 | + $1.750 |
| Jun | $107.000 | + $1.175 |
| Aug | $105.550 | + $1.325 |
| Oct | $107.375 | + $1.625 |
| Dec | $107.875 | + $1.375 |
| Corn futures | Aug. 25 | Change |
| Sep | $3.386 | – $0.134 |
| Dec | $3.534 | – $0.122 |
| Mar ’18 | $3.664 | – $0.112 |
| May | $3.736 | – $0.104 |
| Jul | $3.800 | – $0.100 |
| Sep | $3.860 | – $0.086 |
| Oil CME-WTI | Aug. 25 | Change |
| Oct | $47.87 | – $0.79 |
| Nov | $48.12 | – $0.70 |
| Dec | $48.34 | – $0.59 |
| Jan 18 | $48.53 | – $0.50 |
| Feb | $48.70 | – $0.41 |
| Mar | $48.83 | – $0.34 |
Equities
| Equity Indexes | Aug. 25 | Change |
| Dow Industrial Average | 21813.67 | + 139.16 |
| NASDAQ | 6265.64 | + 49.11 |
| S&P 500 | 2443.05 | + 17.50 |
| Dollar (DXY) | 92.52 | – 0.90 |