Rallying Cattle futures toward the end of the week helped support cash calf and feeder cattle prices, as did increasing hopes that wholesale beef values may have finally found the bottom.
Feeder steers and heifers sold mostly $5-$7/cwt. higher—instances of $6-$8 higher later in the week—according to the Agricultural Marketing Service (AMS).
“Demand was moderate to very good, with moderate to active trade,” AMS analysts say. “Early-week auctions were sparse, as many auction barns were closed in observance of Labor Day.”
Feeder Cattle futures closed an average of $4.59 higher week to week on Friday.
Cash fed cattle trade continued at an impasse through Friday afternoon. Cattle feeders were eying firmer beef values and higher futures prices, while packers kept betting on their inventory and increasing cattle numbers.
There were a few live trades in Nebraska on Friday at $105/cwt., which was steady with the previous week. But, there were too few transactions to trend.
Live Cattle futures closed an average of $2.78 higher week to week on Friday.
Choice boxed beef cutout value was 53¢ higher week to week on Friday afternoon at $191.88 per cwt. Select was 68¢ lower at $189.97.
AMS analysts point out that adverse weather is affecting many along the Gulf Coast due to Hurricane Harvey; Hurricane Irma was aiming for Florida heading into the weekend; Hurricane Jose was on her heels. That’s besides nine states in the west battling wildfires.
“Drought has played a major factor in many of the fires, with 25% of Montana experiencing exceptional drought,” AMS analysts explain. “On a positive note, the Midwest and Southern Plains are experiencing cooler weather and/or plenty of moisture for this time of year. This has allowed farmers in the Southern Plains to begin working ground and planting wheat, which is one to two weeks earlier than previous years.”
“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. 8 | 126,500 |
-9,300 |
40,200 | -9,900 | 11,600 | -153,800 | 178,300 | -173,000 |
CME Feeder Index
| CME Feeder Index | Sept. 7 | Change |
| $148.24 | + $5.16 |
*Thursday-to Thursday for CME Feeder Index
Cash Stocker and Feeder
North Central
| Steers-Cash | Sept. 8 | Change |
| 600-700 lbs. | $161.72 | + $4.96 |
| 700-800 lbs. | $157.00 | + $4,64 |
| 800-900 lbs. | $151.13 | + $3.75 |
South Central
| Steers-Cash | Sept. 8 | Change |
| 500-600 lbs. | $159.15 | + $0.16 |
| 600-700 lbs. | $155.60 | + $2.15 |
| 700-800 lbs. | $152.28 | + $4.76 |
Southeast
| Steers-Cash | Sept. 8 | Change |
| 400-500 lbs. | $153.97 | – $0.97 |
| 500-600 lbs. | $144.54 | – $0.08 |
| 600-700 lbs. | $138.20 | + $0.60 |
(AMS National Weekly Feeder & Stocker Cattle Summary)
Wholesale Beef Value
| Boxed Beef (p.m.) | Sept. 8 ($/cwt) | Change |
| Choice | $191.88 | + $0.53 |
| Select | $189.97 | – $0.68 |
| Ch-Se Spread | $1.91 | + $1.21 |
Futures
| Feeder Cattle | Sept. 8 | Change |
| Sep | $147.875 | + $5.150 |
| Oct | $148.425 | + $4.875 |
| Nov | $148.225 | + $4.275 |
| Jan ’18 | $145.875 | + $4.525 |
| Mar | $144.000 | + $4.725 |
| Apr | $144.225 | + $4.400 |
| May | $144.300 | + $4.425 |
| Aug | $144.475 | + $4.350 |
| Live Cattle | Sept. 8 | Change |
| Oct | $107.325 | + $2.175 |
| Dec | $112.850 | + $3.375 |
| Feb ’18 | $116.625 | + $3.700 |
| Apr | $117.775 | + $3.700 |
| Jun | $111.000 | + $2.875 |
| Aug | $109.000 | + $2.525 |
| Oct | $110.025 | + $2.175 |
| Dec | $110.775 | + $2.700 |
| Feb | $110.800 | + $1.800 |
| Corn futures | Sept. 8 | Change |
| Sep | $3.442 | + $0.042 |
| Dec | $3.566 | + $0.014 |
| Mar ’18 | $3.690 | + $0.014 |
| May | $3.766 | + $0.014 |
| Jul | $3.832 | + $0.016 |
| Sep | $3.892 | + $0.012 |
| Oil CME-WTI | Sept. 8 | Change |
| Oct | $47.78 | + $0.19 |
| Nov | $48.06 | + $0.07 |
| Dec | $48.56 | + $0.02 |
| Jan 18 | $48.95 | – $0.04 |
| Feb | $49.25 | – $0.07 |
| Mar | $49.46 | – $0.09 |
Equities
| Equity Indexes | Sept. 8 | Change |
| Dow Industrial Average | 21797.79 | – 189.77 |
| NASDAQ | 6360.19 | – 75.14 |
| S&P 500 | 2461.43 | – 15.12 |
| Dollar (DXY) | 91.32 | – 1.53 |