Feeder cattle opened the week steady to $4/cwt. higher in the cash market, before the rout began in Cattle futures. By the end of the week, they were trading $3-$10 lower. That was for the North Central and South Central Plains. Prices were mixed in the Southeast, from $8 lower to $6 higher, according to the Agricultural Marketing Service (AMS).
“Despite the lower market, low feed costs and the surplus of corn in farmer feeder country continues to spur demand for steers,” said AMS analysts. “Prices in the Northern Plains and upper Midwest continue to be the highest in the nation. Cattle producers in that area are taking advantage of the market before demand decreases as farmers will soon be busy with corn and soybean harvest.”
Open interest in Live Cattle futures lost more than 16,000 contracts during the week—strong, steady, daily decline—as folks exited, apparently growing more concerned about looming increases in fed cattle numbers.
Live Cattle futures closed an average of $4.94 lower week to week on Friday ($3.32 to $6.70 lower).
Feeder Cattle futures closed an average of $7.37 lower week to week on Friday ($6.40 to $8.62 lower).
Outside markets added pressure as major U.S. financial indices sagged beneath the weight of increasing tension between the U.S. and North Korea.
Rather than find and firm a seasonal bottom, wholesale beef values continued to lose ground.
Choice boxed beef cutout value was $4.01 lower week to week on Friday at $199.60/cwt., the lowest level since February. Select was $1.19 lower at $196.12. At $3.48 on Friday afternoon, the Choice-Select spread was the narrowest since February.
Despite continued currentness in feedlot marketing, increasing numbers meant packers could keep adding inventory at lower prices.
Negotiated cash fed cattle trade was $1-$4 lower on a live basis at $114 (Iowa-Minnesota) to $116 (Nebraska). Dressed trade was $2-$5 lower at $183-$185.
Week to week, regional cash feeder cattle prices (AMS National Weekly Feeder and Stocker Cattle Summary) traded lower year over year for the first time since the end of April.
Memories of the last fall’s price collapse have plenty of folks spooked, of course. Calf and feeder prices broke hard to the downside after the first week of September and lost ground through October before finding some stability at lower levels than many anticipated.
AMS analysts note, “The last time cash fed prices and spot live cattle futures were this low was in December 2016.”
Friday to Friday Change*
Weekly Auction Receipts
| Receipts | Auction | Change | Direct | Change | Video/Internet | Change | Total | Change |
| Aug. 11 | 160,200 | +9,300 | 28,800 | -8,500 | 215,200 | +25,900 | 404,200 | +26,700 |
CME Feeder Index
| CME Feeder Index | Aug. 10 | Change |
| $145.96 | – $6.03 |
*Thursday-to Thursday for CME Feeder Index
Cash Stocker and Feeder
North Central
| Steers-Cash | Aug. 11 | Change |
| 600-700 lbs. | $162.92 | – $10.49 |
| 700-800 lbs. | $154.70 | – $12.14 |
| 800-900 lbs. | $151.94 | – $ 4.85 |
South Central
| Steers-Cash | Aug. 11 | Change |
| 500-600 lbs. | $161.86 | + $0.38 |
| 600-700 lbs. | $156.05 | – $0.68 |
| 700-800 lbs. | $146.71 | – $4.75 |
Southeast
| Steers-Cash | Aug. 11 | Change |
| 400-500 lbs. | $154.72 | – $4.35 |
| 500-600 lbs. | $148.14 | – $2.35 |
| 600-700 lbs. | $139.79 | – $2.79 |
(AMS National Weekly Feeder & Stocker Cattle Summary)
Wholesale Beef Value
| Boxed Beef (p.m.) | Aug. 11 ($/cwt) | Change |
| Choice | $199.60 | – $4.01 |
| Select | $196.12 | – $1.19 |
| Ch-Se Spread | $3.48 | – $2.82 |
Futures
| Feeder Cattle | Aug. 11 | Change |
| Aug | $141.775 | – $8.175 |
| Sep | $142.225 | – $8.625 |
| Oct | $141.600 | – $8.325 |
| Nov | $141.500 | – $7.275 |
| Jan ’18 | $138.900 | – $6.825 |
| Mar | $136.750 | – $6.800 |
| Apr | $136.850 | – $6.400 |
| May | $136.050 | – $6.550 |
| Live Cattle | Aug. 11 | Change |
| Aug | $109.725 | – $5.725 |
| Oct | $107.400 | – $6.700 |
| Dec | $109.325 | – $5.850 |
| Feb ’18 | $111.175 | – $5.625 |
| Apr | $112.075 | – $5.000 |
| Jun | $106.625 | – $4.525 |
| Aug | $105.150 | – $4.125 |
| Oct | $106.150 | – $3.325 |
| Dec | $106.300 | – $3.600 |
| Corn futures | Aug. 11 | Change |
| Sep | $3.606 | – $0.058 |
| Dec | $3.746 | – $0.064 |
| Mar ’18 | $3.864 | – $0.060 |
| May | $3.926 | – $0.054 |
| Jul | $3.984 | – $0.050 |
| Sep | $4.022 | – $0.048 |
| Oil CME-WTI | Aug. 11 | Change |
| Sep | $48.22 | – $1.36 |
| Oct | $48.97 | – $0.76 |
| Nov | $49.11 | – $0.77 |
| Dec | $49.23 | + $0.79 |
| Jan ’18 | $49.37 | + $0.78 |
| Feb | $49.46 | + $0.77 |
Equities
| Equity Indexes | Aug. 11 | Change |
| Dow Industrial Average | 21858.32 | – 234.49 |
| NASDAQ | 6256.56 | – 95.00 |
| S&P 500 | 2441.32 | – 35.51 |
| Dollar (DXY) | 93.06 | – 0.43 |