Cattle futures posted steep losses over the week, with cash trade also trending lower.
Live cattle futures headed lower. The December contract lost about $12 to close at $214.40, and the February contract also lost about $12 to close at $217.62.
“Combine the market’s lack of confidence thanks to last week’s dramatic sell off, with the strike threats looming at the Los Angeles and Long Beach ports (where approximately 25% of beef exports pass through) and you can easily see why the live cattle complex is struggling,” ShayLe Stewart, DTN livestock analyst, wrote in her Thursday midday comments. “An announcement overnight showed that the contract at the ports had been temporarily extended from Nov. 6 as negotiations continue.”
Cash trade through Thursday totaled about 59,000 head. Live steers sold from $215-219, and dressed steers sold from $335-345.
Cash trade through Nov. 1 totaled 68,178 head. Live steers averaged $223.30, and dressed steers averaged $345.
The national weekly direct beef type price distribution for the week of Oct. 26 to Nov. 2 was the following on a live basis:
• Negotiated purchases: $223.88.
• Formula net purchases: $231.79.
• Forward contract net purchases: $234.86.
• Negotiated grid net purchases: $232.83.
On a dressed basis:
• Negotiated purchases: $351.99.
• Formula net purchases: $365.52.
• Forward contract net purchases: $370.78.
• Negotiated grid net purchases: $352.94.
“This week’s comprehensive fed cattle report showed a decline in carcass weights and quality grading—some indication of getting a handle on heavy cattle in the north,” the Cattle Report wrote on Thursday. “Generous packer margins and improved efficiency in plant utilization rates also will help clean up overweight cattle.”
Slaughter through Thursday totaled about 430,000 head, compared to 434,000 head a week earlier. Total slaughter for a week earlier is estimated at 543,000 head. Actual slaughter for the week ending Oct. 24 was 548,337 head. The average steer dressed weight was 991 lbs., down 3 lbs. from the prior week.
Boxed beef prices traded mixed over the week. The Choice cutout lost about $6 to close at $361.56, and the Select cutout gained less than a dollar to close at $352.32.
The lean beef trim contracts traded steady to lower over the week. The 50% lean beef trim November contract was unchanged at $85.30, while the 90% lean beef trim November contract lost $21 to close at $376.
Feeder cattle
Feeder cattle futures nosedived over the week. The November contract lost about $26 to close at $325.05, and the January contract lost about $22 to close at $320.32.
“Until some support is found, and the live cattle market sees some improvement too, the feeder cattle contracts are likely going to continue to trail lower,” Stewart said.
The CME Feeder Cattle Index lost under $4 to close at $348.78.
Corn futures traded lower. The December contract lost 11 cents to close at $4.40, and the March contract lost 10 cents to close at $4.54.
“October and November are the largest marketing periods of the year for replacement cattle, but this year they are not so large, or at least the October component,” the Cattle Report said. “Generous rainfall and mild temperatures have allow many operations to hold cattle late on pasture.”
Missouri: Joplin Regional Stockyards in Carthage sold 5,943 head on Monday. Compared to the previous sale, feeder steers sold steady to $10 lower. Feeder heifers under 600 lbs. sold steady to $8 higher. Heavier weights sold $6-12 lower. Benchmark steers averaging 720 lbs. sold from $355-365, averaging $358.86.
New Mexico: Roswell Livestock in Roswell sold 909 head on Tuesday. Compared to the last auction, steer calves 300-400 lbs. sold steady to $10 lower and 400-600 lbs. were $12-20 higher. Feeder steers 600-700 lbs. sold $2-7 lower and 700-750 lbs. were $15 higher. Heifer calves 350-450 lbs. and 550-600 lbs. sold steady to $15 lower, while 450-550 lbs. were $20-30 higher. Feeder heifers sold higher. Benchmark steers averaging 709 lbs. sold from $319-340, averaging $329.07.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 4,394 head on Monday. Compared to a week earlier, yearling-type feeder steers and heifers were lightly tested and $4-12 lower. Sixty-day weaned feeder type cattle sold sharply lower. Steer and heifer calves sold $10-20 lower on lesser quality, some $30 lower. Benchmark steers averaging 719 lbs. sold from $340-368, averaging $357.50.
South Dakota: Sioux Falls Regional in Worthing sold 1,808 head on Monday. Compared to a week earlier, yearling feeder steers showed limited comparisons, with the most reliable comparison on 1,000-1,100 lbs., which sold $2-5 lower. There was a lower undertone noted on lighter feeder steers and calves with instances of $10-12 lower on heavier feeders. Yearling feeder heifers displayed limited comparable ranges as well, with 900-950 lbs. selling $4-6 lower and 1,000-1,050 lbs. selling $10-12. Heifer calves sold mostly mixed with the only decent test on 500-550 lbs., which sold $10-13 higher. A group of steers weighing 757 lbs. sold for $354.
Texas: Giddings Livestock in Giddings sold 1,014 head on Monday. Compared to the last auction, feeder steers and heifers under 400 lbs. were steady with a week earlier. Feeder steers over 400 lbs. were $5-10 lower. Feeder heifers over 400 lbs. sold $4-10 lower. Benchmark steers averaging 723 lbs. sold from $313-320, averaging $314.60.
Utah: Producers Livestock in Salina sold 1,695 head on Tuesday. Compared to the previous auction, feeder cattle sold sharply lower. Benchmark steers averaging 717 lbs. sold from $327.50-350, averaging $342.60.
Wyoming: Winter Livestock in Riverton sold 3,246 head on Tuesday. Compared to the last auction, feeder steers were mostly steady with lower undertones noted. Feeder heifers sold with steady to lower undertones, with the offering less attractive than the previous week. Benchmark steers averaging 718 lbs. sold from $320-339, averaging $330.62. — Anna Miller Fortozo, WLJ managing editor
