Compared to last week, calves and yearlings sold mostly steady to 3.00 lower. Several auctions called their calves fully steady to higher on the top quality calves early to mid-week. Feeder cattle buyers are showing reserve on purchases of feedlot replacements especially the yearlings this week as equity has been lost over the last several cycles of cattle feeding. Many orders seemed to be filled at mid-week as lower feeder cattle futures on Tuesday and Wednesday were hit with triple digit losses on both live and feeder cattle futures on Thursday from pressure by disappointing feedlot trade. Cash trade was active on Thursday afternoon with prices in the North at 130.00-131.00 steady to 1.00 lower and the Southern trade at 84.50 which was mostly steady to 50 cents lower than last week's trade as prices were unable to move higher.

With current crop and grazing conditions very favorable it seems are not enough in this sluggish markets for live and feeder cattle. The livestock scenario for this fall and next year seems favorable with very good crop conditions and outlook but livestock prices seem to be elusive in reaching a positive price level. Near limit higher CBOT corn market on Tuesday came from early frost warnings in the Northern Cornbelt helped pressure feeders, but then frost warnings were removed on Wednesday as corn then traded at lower levels with feeder cattle futures continuing to trade lower.

Boxed Beef Cut-Out Values have traded in a very narrow range since the Friday (May 22) before Memorial Day weekend closing then at 145.73 for Choice and closing this Friday (Sept. 18) at 141.21 for Choice boxed beef, from mid June to end of July trading mostly between 136.00-140.00. Chief among these factors seems to be demand with lower domestic consumer spending as most households are living paycheck to paycheck. Growing supplies of competing meats from pork and chicken and to a certain extent a high rate of dairy cow slaughter have all pressured the beef market. Cattle on Feed Report came out Friday afternoon and were pretty much as expected. Inventory was at 99 percent, 1 percent below September 1, 2008. Placements during August were at 102 percent, 2 percent above 2008. Marketing's of fed cattle during August were 4 percent below 2008 at 96 percent, this is the lowest fed cattle marketing's for month of August since 1996. This week's reported auction volume was 51 percent over 600 lbs and 42 percent heifers.