News of Tyson reopening the second production shift at its Amarillo, TX, plant sent the markets higher at the beginning of the week.
Live cattle futures were able to recover some of the losses from the prior week. The December contract gained about $4 to close at $218.90, and the February contract gained about $5 to close at $222.95.
Cash trade for the week ending Nov. 8 totaled 69,555 head. Live steers averaged $210.11, and dressed steers averaged $329.67.
“Packer interest is still fairly light for the week, so it’s quite possible that trade could be delayed until Friday,” wrote ShayLe Stewart, DTN livestock analyst, in her Thursday midday comments.
Cash trade for the week ending Nov. 8 totaled 69,555 head. Live steers averaged $210.11, and dressed steers averaged $329.67.
Slaughter through Thursday totaled about 435,000 head, compared to 430,000 head a week earlier. Total slaughter for a week earlier is estimated at 534,000 head. Actual slaughter for the week ending Oct. 31 was 546,558 head. The average steer dressed weight was 995 lbs., up 4 lbs. from the prior week.
Boxed beef prices were lower over the week. The Choice cutout lost about $4 to close at $357.59, and the Select cutout lost about $4 to close at $348.71.
“The processors are turning the management of the weekly slaughter number into a professionally orchestrated work of art—holding beef prices in check while breaking the cash markets, leading to some of the best margins this year,” the Cattle Report wrote on Thursday. “The weekly slaughter continues to reflect efficient plant utilization.”
The lean beef trim contracts were unchanged over the week, with the 50% lean beef trim November at $85.30 and the 90% lean beef trim November contract lost at $376.
Feeder cattle
Feeder cattle futures were able to gain back some of their losses from a week earlier. The November contract gained about $10 to close at $335.67, and the January contract gained about $11 to close at $331.67.
“Even though the live cattle complex is trading mixed, the feeder cattle contracts are rocking and rolling, trading higher as traders anticipate another bullish Cattle on Feed report next week, have seen the regression in corn prices and are pleased with the slight uptick in demand buyers have shown in sale barns,” Stewart said. “At this point, the market seems confident enough to trade higher through today’s end regardless of what the live cattle market does.”
The CME Feeder Cattle Index lost about $18 to close at $330.61.
Corn futures traded mostly sideways over the week. The December contract gained a penny to close at $4.43, and the March contract also gained a penny to close at $4.55.
Iowa: Russell Livestock in Russell sold 1,831 head on Monday. Compared to the previous auction, steers under 500 lbs. and steers between 650-750 lbs. sold sharply lower, while all other steers sold mostly $6-25 lower. Heifers sold mostly $6-26 lower. Benchmark steers averaging 736 lbs. sold for $327-336, averaging $333.67.
Missouri: Joplin Regional Stockyards in Carthage sold 5,000 on Monday. Compared to a week earlier, at the open, feeder steers and heifers sold steady to $10 lower. A group of benchmark steers averaging 783 lbs. sold for $341.
Montana: Miles City Livestock in Miles City sold 2,726 head on Tuesday. Compared to the previous auction, steers under 450 lbs. were too lightly tested in either sale to develop any market trend. The best test for feeder steers was for steers 450-599 lbs., which sold mostly steady to $10 lower. A group of unweaned benchmark steers averaging 711 lbs. sold for $354.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 5,500 head on Monday. Compared to a week earlier, feeder cattle and calves were not well tested at the open. Demand was moderate to good. Benchmark steers averaging 728 lbs. sold from $330-342, averaging $339.51.
South Dakota: Sioux Falls Regional in Worthing sold 1,500 head on Monday. Compared to a week earlier, there were too few steer and heifer calves to allow a good comparison. Yearling feeder steers sold with steady to lower undertones, and yearling feeder heifers sold with lower undertones. Benchmark steers averaging 725 lbs. sold from $331-342.50, averaging $336.35.
Utah: Producers Livestock in Salina sold 1,958 head on Tuesday. Compared to the previous auction, feeder cattle sold unevenly steady on calves and yearlings. Benchmark steers averaging 713 lbs. sold from $317.50-343, averaging $331.40.
Wyoming: Winter Livestock in Riverton sold 3,312 head on Tuesday. Compared to the last auction, feeder steers sold mostly steady to $1-3 higher, with instances of $7-15 lower. Heifer calves saw the biggest gains, with $15-17 higher; 550-590 lbs. were $30 higher. A group of steers averaging 670 lbs. sold from $358-375, averaging $369.38. — Anna Miller Fortozo, WLJ managing editor
