Cattle feeders continued to be more bullish than underlying futures and cash fed cattle prices as they bid on calves and feeders last week.
Feeder steers and heifers Traded mostly $2-$7/cwt. higher, according to the Agricultural Marketing Service (AMS). Calves sold steady to $3 higher; up to $8 higher for heavyweight calves.
After 20¢ lower in new spot Sep and 32¢ lower in May, Feeder Cattle futures closed an average of 66¢ higher week to week in Friday (25¢ to 92¢ higher).
“One could say the feeder cattle market has held up well through the fed cattle market decline, as well as holding its own against strong feeder cattle supplies,” says Andrew P. Griffith, agricultural economist at the University of Tennessee, in his weekly market comments. “It would appear cattle feeders have been betting on the come all summer…but if the finished cattle market does not turn soon, then it is likely heavy discounts will be on the way in the feeder cattle market.”
Negotiated cash fed cattle trade was at $104-$105/cwt., which was $1-$3 less than the previous week. Dressed trade was $2-$5 less at mainly $165-$166.
Except for $1.77 lower in new spot Oct and 45¢ lower in Dec, Live Cattle futures closed an average of 71¢ higher week to week on Friday, not counting newly minted away Feb.
At least wholesale beef values found some footing. Choice boxed beef cutout value was 3¢ higher week to week on Friday afternoon at $191.35/cwt. Select was $2.35 higher at $190.65.
Griffith explains that likelihood for the aforementioned price discounts for calves and feeder cattle, tied to declining fed cattle value, ignores seasonal pressure on calf prices.
“For lightweight calves, the price decline (seasonal) will likely be 4-8% from the August-average price to the November-average price,” Griffith says. “This will result in the November monthly average price being $6-$12/cwt. lower than the August average price for 500-600 lb. steers. Similarly, feeder cattle prices will likely decline 3-8% over the next three months.”
Friday to Friday Change*
Weekly Auction Receipts
| Receipts | Auction | Change | Direct | Change | Video/Internet | Change | Total | Change |
| Sept. 1 | 135,800 |
+6,500 |
50,100 | +9,000 | 165,400 | +117,100 | 351,300 | +132,600 |
CME Feeder Index
| CME Feeder Index | Aug. 31 | Change |
| $143.08 | – $0.16 |
*Thursday-to Thursday for CME Feeder Index
Cash Stocker and Feeder
North Central
| Steers-Cash | Sept. 1 | Change |
| 600-700 lbs. | $156.76 | – $5.62 |
| 700-800 lbs. | $152.36 | + $1.80 |
| 800-900 lbs. | $147.38 | + $0.06 |
South Central
| Steers-Cash | Sept. 1 | Change |
| 500-600 lbs. | $158.99 | + $1.32 |
| 600-700 lbs. | $153.45 | + $4.13 |
| 700-800 lbs. | $147.52 | + $3.85 |
Southeast
| Steers-Cash | Sept. 1 | Change |
| 400-500 lbs. | $154.94 | + $1.79 |
| 500-600 lbs. | $144.62 | + $1.21 |
| 600-700 lbs. | $137.60 | + $2.30 |
(AMS National Weekly Feeder & Stocker Cattle Summary)
Wholesale Beef Value
| Boxed Beef (p.m.) | Sept. 1 ($/cwt) | Change |
| Choice | $191.35 | + $0.03 |
| Select | $190.65 | + $2.35 |
| Ch-Se Spread | $0.70 | – $2.32 |
Futures
| Feeder Cattle | Sept. 1 | Change |
| Sep | $142.725 | – $0.200 |
| Oct | $143.550 | + $0.600 |
| Nov | $143.950 | + $0.800 |
| Jan ’18 | $141.350 | + $0.925 |
| Mar | $139.275 | + $0.700 |
| Apr | $139.825 | + $0.250 |
| May | $139.875 | – $0.325 |
| Aug | $140.125 | n/a |
| Live Cattle | Sept. 1 | Change |
| Oct | $105.150 | – $1.775 |
| Dec | $109.475 | – $0.450 |
| Feb ’18 | $112.925 | + $0.550 |
| Apr | $114.075 | + $1.000 |
| Jun | $108.125 | + $1.125 |
| Aug | $106.475 | + $0.925 |
| Oct | $107.850 | + $0.475 |
| Dec | $108.075 | + $0.200 |
| Feb | $109.000 | n/a |
| Corn futures | Sept. 1 | Change |
| Sep | $3.400 | + $0.014 |
| Dec | $3.552 | + $0.018 |
| Mar ’18 | $3.676 | + $0.012 |
| May | $3.752 | + $0.016 |
| Jul | $3.816 | + $0.016 |
| Sep | $3.880 | + $0.020 |
| Oil CME-WTI | Sept. 1 | Change |
| Oct | $47.29 | – $0.58 |
| Nov | $47.99 | – $0.13 |
| Dec | $48.54 | + $0.20 |
| Jan 18 | $48.99 | + $0.16 |
| Feb | $49.32 | + $0.62 |
| Mar | $49.55 | + $0.72 |
Equities
| Equity Indexes | Sept. 1 | Change |
| Dow Industrial Average | 21987.56 | + 173.89 |
| NASDAQ | 6435.33 | + 169.69 |
| S&P 500 | 2476.55 | + 33.50 |
| Dollar (DXY) | 92.85 | + 0.33 |