Odds are improving for at least steady cash fed cattle prices this week.
For instance, Choice 2-4 steers sold $1 higher at Sioux Falls Regional in South Dakota at $106-$108/cwt.
There were 512 head offered in the weekly Fed Cattle Exchange auction and no takers. One lot of Kansas heifers was passed out at $106.
In the country, trade was very limited on light to moderate demand in Nebraska and the western Corn Belt through Wednesday afternoon. There were a few early dressed sales at $170/cwt.—too few to trend—which was steady with last week.
Despite light trade and early pressure, notions of firm to higher cash bids for fed cattle helped Feeder Cattle futures close mostly higher; mostly narrowly mixed for Live Cattle.
Other than an average of 74¢ lower in the front two contracts, Live Cattle futures closed narrowly mixed, 15¢ lower to 7¢ higher.
Other than unchanged and 35¢ lower at the front of the board, Feeder Cattle futures closed an average of 50¢ higher (7¢ to 92¢ higher).
Wholesale beef values were weak to lower on light demand and heavy offerings, according to the Agricultural Marketing Service.
Choice boxed beef cutout value was 42¢ lower Wednesday afternoon at $210.40/cwt. Select was $1.30 lower at $200.91.
*******************************
Major U.S. financial indices closed mixed Wednesday, with pressure from tech stocks. Support included reports that the U.S. and Canada renewed trade talks.
The Dow Jones Industrial Average closed 22 points higher. The S&P 500 closed 8 points lower. The NASDAQ was down 96 points.
*******************************
Overall, pasture and range conditions improved slightly last week, according to the latest weekly Crop Progress report (week ending Sept. 2). Among states with 35% or more of pasture and range rated as Poor or Very Poor, week-to-week conditions improved in Arizona, Colorado, Missouri, New Mexico and Texas.
Nationally, 42% of pasture and range is in Good (36%) or Excellent (6%) condition, 2% more than a week earlier, but 5% less than a year earlier. 28% is rated as Poor (18%) or Very Poor (10%), which is 2% less than a week earlier and 7% more than last year.
States with 35% or more pasture and range rated as Poor or Very Poor include: Arizona (64%), California (45%), Colorado (48%), Missouri (54%), Nevada (35%), New Mexico (46%), Oregon (73%), Rhode Island (70%), Texas (53%), Utah (57%) and Washington (57%).
*******************************
With conditions generally favorable for early to mid September winter wheat planting in his state, Derrell Peel, Extension livestock marketing specialist at Oklahoma State University, offers some thoughts about stocker opportunities, in his weekly market comments
“Profitability of winter stockers (purchased in October) will depend on numerous budget factors including purchase price, length of grazing period, rate of stocker gain, wheat pasture cost and, of course, selling price in late February or early March,” Peel explains.
On the buy side of the equation, Peel says seasonal and futures price projections suggest an October low price range in Oklahoma of $163-$168/cwt. for a steer calf (Med. and Large 1) weighing 475 lbs.
“Exceptionally good wheat pasture demand could hold prices at the upper end of the range or higher, while any delays in wheat pasture development could allow prices to drop to the low end of the range or below,” according to Peel.
As for marketing, Peel points to the March Feeder Cattle futures contract of $145-$146.
“This implies an Oklahoma price for 750 lbs. steers in early March of $146-$148/cwt. given an expected basis of roughly $1.50/cwt.,” Peel says. “Budget assumptions can vary widely, but this appears to be a price that more than covers breakeven cost of production for winter grazing. Producers should develop and evaluate budgets which reflect their particular situation. It may be that current futures prices offer an opportunity to protect a decent margin for winter grazing programs.”