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CME: Cash Live Slaughter Steer Prices Post Uptick on W38

26 September 2017

US - Cash live slaughter steer prices posted an uptick last week, feeder cattle at Oklahoma City were about unchanged, and slaughter hogs continued to drop week-over-week, according to Steiner Consulting Group, DLR Division, Inc.

On the bottom of this page is our summary of USDA Agricultural Marketing Service reported production and prices for last week.

In the futures market, using the average of the daily closing prices, all the Live (fed) cattle contracts had higher prices for the week. The October fed cattle contract averaged $109.63 per cwt., up $2.49 week-over-week and was the highest since the first week of September.

Friday’s Cattle on Feed report by USDA’s National Agricultural Statistics Service (NASS) could be classified as a modestly bearish surprise, even though the numbers were within the pre-report ranges. (For a pre-report discussion see the Daily Livestock Report dated 20 September).

Those ranges were very wide and both animals placed into feedlots during August, and the and the inventory count were above the pre-report averages. The full report is available here.

Animals placed during August were 2.6 per cent above a year ago, and the 1 September on-feed count was 3.6 per cent above 2016’s. As expected, cattle marketed by feedlots during August was aggressive (up 5.9 per cent year-over-year).

The placement weight breakdown in the report provided some important insight. All of the year-over-year increase in cattle placed weighed 800-pounds or more.

Most analysts thought that if placements did come in above 2016’s, the bulk of the increase would be calves (largely animals weighing under 600-pounds, the lightest category reported by NASS) from the drought-impacted northern High Plains states. But that was no the case.

The year-over-year increase in animals placed weighing 800-pounds and over was 65,000 head (up 8.1 per cent). Those animals will be marketed by feedlots in the first few months of 2018. Friday’s Live Cattle contract for April 2018 closed at $121.95 per cwt.

Daily Livestock Report - Copyright © 2008 CME. All rights reserved.

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