Cattle markets struggled to find direction over the week as uncertainty lingered following sharp losses a week earlier.
Live cattle futures were unable to regain the losses experienced over the week. The October contract lost about $4 to close at $235.27, and the December contract lost about $10 to close at $231.10.
“There is tension vibrating throughout the entire marketplace in the wake of events since October 16 as everyone ponders what comes next,” said Cassie Fish, market analyst in The Beef, on Thursday, referring to the market fallout from President Donald Trump’s Argentine imports remarks. “Only time contains the answer.”
Cash trade through Thursday totaled about 40,000 head. Live steers sold from $230-235, and dressed steers sold from $358-360.
“It’s well known that numbers in the South have begun to tighten and cattle on feed numbers, especially in Texas, are dramatically under a year ago due to the loss of access to Mexican feeders,” Fish said.
USDA Secretary Brooke Rollins and Mexico Agriculture Minister Julio Berdegué met during a video conference in late October to discuss the closed border, but no announcements have been made about allowing Mexican cattle into the U.S. again.
Cash trade for the week ending Oct. 26 totaled 76,830 head. Live steers averaged $237.48, and dressed steers averaged $368.79.
Slaughter through Thursday totaled about 457,000 head, compared to 446,000 head a week earlier. There was no estimate for total trade a week earlier, or actual trade for two weeks earlier, due to the government shutdown and lack of USDA National Agricultural Statistics Service reports.
“The week has reversed margins at the beef plants and encouraged larger slaughter volumes that may in turn be eating into the supply of fed cattle that was already short and getting shorter,” the Cattle Report wrote on Thursday.
Boxed beef prices continue to see gains. The Choice cutout gained about $5 to close at $378.27, and the Select cutout also gained about $5 to close at $359.52.
There was no Cattle on Feed report released this month due to the government shutdown.
Feeder cattle
Feeder cattle futures failed to find any gains over the week. The October contract lost more than $16 to close at $347.27, and the November contract lost about $20 to close at $341.82.
The CME Feeder Cattle Index lost more than $15 to close at $356.62.
Corn futures saw some small gains, up 2 cents on the December contract to $4.30 and up 2 cents on the March contract to $4.43.
“On the fundamental side, auction market receipts are down as are country movement of cattle—leading to sharp reductions in placements,” the Cattle Report said.
Missouri: Joplin Regional Stockyards in Carthage sold 6,301 head on Monday. Compared to a week earlier, feeder steers sold $25-40 lower and feeder heifers sold $20-20 lower. Benchmark steers averaging 832 lbs. sold from $332-347, averaging $339.45.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 3,800 head on Monday. Feeder steers and heifers sold $30-40 lower, and steer and heifer calves sold mostly $40-50 lower. Benchmark steers averaging 733 lbs. sold from $320-354, averaging $331.19.
South Dakota: Sioux Falls Regional in Worthing sold 1,709 head on Monday. Compared to a week earlier, offerings were not well compared but there were sharply lower undertones. Yearling feeder steers and heifers were $25-30 lower. A small group of benchmark steers averaging 736 lbs. sold for $322.50. — Anna Miller Fortozo, WLJ managing editor
