Coming back from Thanksgiving, cash cattle soared higher, while futures were uncertain.
Live cattle futures were mixed over the week, with the December contract down 45 cents to $137.65 and the February contract up $1.63 to close at $139.57.
Cash trade was off to a slow start last week, with feeders choosing to hold out until Thursday for higher bids. An impressive 62,547 head traded Thursday, bringing the week’s total to about 74,000 head. Live steers sold between $138-142.50, mostly at $140.86. Dressed steers traded between $218-221.
“Helping feedlots feel confident in their quest to get higher prices again this week was the fact that packers committed 90 percent of the cattle they bought last week for the nearby delivery, as well as Thursday’s strong export report, which again suggests beef demand is excellent both here and abroad,” remarked ShayLe Stewart, DTN livestock analyst, in her Thursday midday comments.
Cash trade through the holiday-shortened week of Thanksgiving totaled 110,593 head: still an impressive number. Live steers averaged $138.03, and dressed steers averaged $216.04.
“Negotiated fed cattle prices advanced a monster $5 per cwt last week and reached the highest level since 2017,” remarked Cassie Fish, market analyst, in Monday’s edition of The Beef. “Tight supplies of market-ready cattle coupled with three big slaughter schedules planned beginning this week were a potent and bullish combination.”
The Fed Cattle Exchange listed 1,868 head for sale during its weekly Wednesday online auction, of which no lots sold. Opening bids were from $137.50-138, while reserve prices were mostly at $140. The Exchange also held a special sale on Thursday and offered 1,759 head. Of that, 1,252 head sold. Heifers averaged $140.30, and steers averaged $140.09. Texas, Oklahoma and New Mexico sold all of the successful lots.
The national weekly direct beef type price distribution for the week of Nov. 22 to Nov. 29 was the following on a live basis:
• Negotiated purchases: $137.97.
• Formula net purchases: $135.83.
• Forward contract net purchases: $132.49.
• Negotiated grid net purchases: $134.33.
On a dressed basis:
• Negotiated purchases: $216.28.
• Formula net purchases: $214.71.
• Forward contract net purchases: $201.72.
• Negotiated grid net purchases: $209.72.
Slaughter through the week totaled 488,000 head, compared to the 366,000 head of the holiday-shortened week. Estimates for slaughter for Thanksgiving week are at 566,000 head. Slaughter for the week ending Nov. 20 totaled an impressive 679,563 head.
Boxed beef prices were lower another week: The Choice cutout lost about $6.60 to close at $272.02, and the Select cutout lost just over $4.42 to close at $258.25. The Choice/Select spread dropped to be about $13.75.
“Boxed beef values are seasonally slumping, the rib primal down $18 from a week ago, the chuck down $6, the round primal down $12 and the loin down $8,” Fish said. “Packer margins will continue to narrow from their historic level, which was bound to happen at some point.”
Feeder cattle
Feeder futures were mixed over the week. The January contract lost $1.40 to close at $165.77, and the March contract gained 35 cents to close at $168.32. The CME Feeder Cattle Index gained $3.91 over the week to close at $161.34.
Corn futures were also mixed, with the December contract down 9 pennies to $5.77 and the March contract up 15 cents to $5.76.
“Feeders would love nothing more than to see the live cattle complex champion another rally this week in the cash market, which may be enough support to pull feeders higher as well,” Stewart said. “Despite the slight weakness on the board Thursday morning, the demand throughout the countryside hasn’t weakened whatsoever.”
Colorado: Winter Livestock in La Junta sold 2,966 head on Tuesday. Compared to a week earlier, steer and heifers with quality and condition and weaned 50 days or longer sold $5-8 higher, with instances of $10 higher. Yearling feeder steers and heifers over 700 lbs. sold $3-5 higher, with instances of $8 higher. Benchmark steers averaging 774 lbs. sold between $150.50-156, averaging $154.08.
Missouri: Joplin Regional Stockyards in Carthage sold 7,500 head Monday. Compared to the sale a week earlier, at the mid-session, feeder steers under 475 lbs. sold $5-8 higher, and heavier weights sold steady. Feeder heifers traded $3-9 higher. Benchmark steers averaging 781 lbs. sold between $156-167.50 and averaged $162.07.
New Mexico: Roswell Livestock in Roswell sold 1,371 head on Monday. Compared to the last auction, steer calves under 500 lbs. sold $2 lower, calves and feeders over 500 lbs. were $4-5 higher and a few 700-750 lbs. sold $10-12 higher. Heifer calves under 500 lbs. were steady to $3 higher, and calves and feeders over 500 lbs. sold $6-10 higher. A group of steers averaging 718 lbs. sold between $149-152 and averaged $149.42.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 12,000 head Monday. Compared to a week earlier, feeder steers sold $2-4 higher, and feeder heifers sold $3-5 higher. Steer and heifer calves sold $4-6 higher with instances of $15 higher. Benchmark steers averaging 766 lbs. sold between $160-173.10 and averaged $165.25.
South Dakota: Sioux Falls Regional Livestock in Worthing sold 2,893 head on Monday. Compared to the previous auction, feeder steers were steady to $3 higher, with steers 600-650 lbs. taking a significant jump higher. Feeder heifers sold steady to $2 higher, except 600-750 lbs., which were $10-11 higher. Benchmark steers averaging 725 lbs. sold between $158-170, averaging $166.43. — Anna Miller, WLJ managing editor
