The cattle market headed mostly higher over the week. Corn prices were sent lower, slaughter has stayed strong and boxed beef prices continue to trade higher. Feedlots held out another week for cash trade, receiving a couple dollars more in the process.
“The live cattle complex is keeping with its aggressive upward move as the market is elated to see feedlots pushing back against packers and demanding more money for fats,” ShayLe Stewart, DTN livestock analyst, wrote in her Thursday midday comments.
Live cattle futures were several dollars higher than a week earlier. The October contract was up over $3 to $149.77, and the December contract was up about $4 to $151.67.
Cash trade is expected to trade higher this week. Through Thursday early afternoon, about 83,000 head had sold. Live steers sold from $147-152, and dressed steers sold from $232-236.
“It’s a long time coming to see cash cattle prices gain $3 in one week, as tighter fed cattle supplies and big weekly slaughter schedules push packers to take prices to new highs for 2022,” wrote Cassie Fish, market analyst, in The Beef on Thursday. “This is the highest cash price in seven years.”
Cash trade through the week ending Oct. 16 totaled 75,624 head. Live steers averaged $147.21, and dressed steers averaged $231.51.
The national weekly direct beef type price distribution for the week of Oct. 10-17 was the following on a live basis:
• Negotiated purchases: $147.19.
• Formula net purchases: $147.24.
• Forward contract net purchases: $145.15.
• Negotiated grid net purchases: $146.78.
On a dressed basis:
• Negotiated purchases: $231.51.
• Formula net purchases: $234.02.
• Forward contract net purchases: $227.65.
• Negotiated grid net purchases: $231.33.
Slaughter through Oct. 13 is estimated at 660,000 head. Actual slaughter for the week ending Oct. 8 totaled 669,274 head. Dressed steer weights were 920 lbs.
Boxed beef prices were higher over the week. The Choice cutout gained over $7 to close at $253.62, and the Select cutout gained over $6 to close at $222.08.
“Tightening packer margins have not slowed down slaughter, and since boxed beef prices are now surging seasonally, some of that margin contraction will stabilize,” Fish said. “Packers are actually competing against one another for market share once again.”
Feeder cattle
Feeder cattle futures traded mostly sideways but were able to close slightly higher. The October contract was up 82 cents to $175.57, and the November contract was up $1.45 to $177.55.
The CME Feeder Cattle Index lost $2 to close at $172.03.
Corn futures lost their momentum, with the December contract down 13 cents to $6.84 and the March contract down 15 cents to $6.90.
“And while the corn market thankfully alleviates some pressure from the feeder cattle market, the live cattle complex is helping propel the market higher as not only is it trading higher through its contracts, but it’s also looking like cash cattle will trade higher again this week,” Stewart said in her Wednesday comments.
Colorado: Winter Livestock in La Junta sold 602 head on Tuesday. Compared to a week earlier, steer and heifer calves were too lightly tested for a comparison. Yearling feeder steers and heifers sold mostly steady. Benchmark steers averaging 709 lbs. sold between $167-173.50, averaging $168.72.
Kansas: Winter Livestock in Dodge City sold 3,229 head Wednesday. Compared to the last auction, steers 575-700 lbs. sold steady. Steer calves 400-575 lbs. sold $6-10 higher. There were not enough feeder heifers 550-900 lbs. for a market test. However, a lower trend was noted. Heifer calves 400-550 lbs. sold steady to $5 higher. A group of steers averaging 767 lbs. sold for $173.
Missouri: Joplin Regional Stockyards in Carthage sold 3,772 head on Monday. Compared to a week earlier, feeder steers under 525 lbs. sold steady to $4 higher, with heavier weights selling $2-5 lower. Feeder heifers traded mostly steady to $4 lower. Benchmark steers averaging 724 lbs. sold from $170.50-180, averaging $174.31.
Nebraska: Tri-State Livestock in McCook sold 1,585 head Monday. Compared to the last auction, steers 450-550 lbs. sold $3-12 lower, and heifers were $5-9 lower on 400 lb. and 500 lb. weights. A group of steers averaging 794 lbs. sold for $177.50.
New Mexico: Roswell Livestock in Roswell sold 1,110 head Monday. There was no accurate comparison, as the last auction was a month ago. A group of steers averaging 824 lbs. sold between $149-158 and averaged $155.27.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 7,000 head on Monday. Compared to a week earlier, feeder steers sold $3 higher, and feeder heifers sold $1-4 higher. Steer calves sold steady to $2 higher, and heifer calves sold $2-4 higher.
South Dakota: Hub City Livestock in Aberdeen sold 4,183 head Wednesday. Compared to the last auction, the best test was on yearling steers 850-900 lbs., which sold steady to $2 higher, with other weight classes of yearling steers not well compared. The best test was on yearling heifers 800-900 lbs., which sold $3 higher, and 901-1,000 lbs. sold steady to $2 higher. Benchmark steers averaging 781 lbs. sold between $175-185.25 and averaged $178.33.
Wyoming: Torrington Livestock Feeder Cattle Auction in Torrington sold 4,489 head Wednesday. Compared to the last auction, yearling steers and heifers traded mostly steady, with a few instances of $2 higher on load lots. Steer calves traded unevenly steady. Heifer calves also traded unevenly steady. Benchmark steers averaging 726 lbs. sold between $180-189, averaging $187.54. — Anna Miler, WLJ managing editor
