Prices keep heading up as the mercury dips around cattle country.
It’s only a few weeks from “turkey day” but beef demand is comparatively red hot. Compared to the first of the month, cutouts last week saw $5 gains for both Choice ($238.29) and Select ($213.02). Cassie Fish of the Beef Report described prices as screaming “to the highest level for any November since 2014, which was the all-time high, and demand for Choice product and middles is actually higher than in 2014, packers will keep kills elevated and cattle moving through the pipeline in a timely and orderly fashion.”
Cash fed cattle prices last week were also up $1-2 compared to the averages set the week before. By the USDA afternoon slaughter cattle report on Thursday, Nov. 7, over 25,500 head of negotiated cash fed cattle had been confirmed sold for the week at prices of $114-115 (avg. $114.24) live and $177-182 ($181.48) dressed.
Cash feeder cattle were also performing well last week. The volumes of feeder cattle on offer at the surveyed auctions were notably high last week. Many sales that regularly sell 1,000-3,000 head of feeders each week were selling over 5,000 or 6,000 head last week. Prices were mostly up too, with averages on medium and large #1 steers weighing 700-800 lbs. being largely in the $140s.
Colorado: The Winter Livestock auction held its special seasonal feeder cattle sale last week, selling almost 1,000 head more feeders than the week before at 7,432 total head. Prices were mixed but mostly higher. Steers were mostly steady to up $8, except for 4-weight calves, which were steady to down $2. Heifers were also steady to up $8. Demand was especially good for calves that were over 30 days weaned. There was almost a $9-discount given to the unweaned lot of benchmark steers compared to the yearling lot, with averages of $135.24 and $143.91 respectively.
Iowa: The Clarinda Livestock sale sold almost 2,000 head of feeders. Best test was on 5-weight steers, which were up $3, and 7-weight heifers, which were up $3-5. Two lots of #1, 7-weight yearling steers sold ranging from $147-156.
Kansas: The number of feeder cattle sold last week at the Winter Livestock auction of Dodge City almost doubled last week, making market trends difficult. Steers were said to have a higher undertone while comparable sales of heifers were steady to up $3. Unweaned calves saw a discount. Standard benchmark yearling steers ranged from $144.50-156.25 while “fleshy” yearlings ranged from $134-139.
Missouri: At the Joplin Regional Stockyards, feeder cattle of all ages and sexes were up $3-6. Demand was called good on moderate supply. Only one small lot of #1, 7-weight yearling steers sold, averaging $154.
Montana: The Miles City Livestock Commission sold 3,210 head of feeders last week, just slightly down from the week before. Despite that, there were too few comparable sales on yearling feeders. Steer calves were called mostly steady to $5 higher. Heifer calves were up $3-6, except those over 600 lbs., which were steady to $2 lower. A sharp divide was seen between grass cattle and feedlot cattle. Calves with two rounds of shots and preconditioning in them saw the best demand. Only a few benchmark steers sold, and all of them were bawling calves. Averages were in the low- to mid-$130s.
Nebraska: The Sheridan Livestock Auction sold over three times the number of feeders last week at 6,300 head compared to what it sold the week before. Steers sold up $3-9 higher and heifers were up $2-4. Two lots of unweaned benchmark steer calves sold at wildly different price points. The small lot of just 15 head averaged $135 while the large, 111-head lot averaged $156.55.
New Mexico: The Clovis Livestock Auction sold a few more head of feeders last week compared to the week before with 3,398 head. Feeder steers were mixed up $2-3 on feeders over 500 lbs. and down $1-2 on lighter feeders. Heifers were called up $1-2 on most of the offering. Trade was called active on good demand. There was a $7-8 discount on average prices for unweaned benchmark steers compared to yearlings, with the yearling offering selling between $129-134 and the unweaned calf offering selling between $123.50-127.50.
Oklahoma: The volume of feeder cattle that sold at the Oklahoma National Stockyards last week nearly doubled with 11,269 head sold. Steers were up $2-5 and heifers were up $2-4. Calves under 500 lbs. were not well tested, but steer calves over that weight were called steady, while heavier heifer calves were down $2-6. As with other sales, there was a noticeable discount on unweaned calves compared to their more mature weight compatriots; #1, 7-weight yearlings sold for $143-154.50 with averages in the upper $140s, while the unweaned calves sold for $135-140.
South Dakota: The Philip Livestock Auction also sold over 11,000 head of feeders last week. Feeder steers were mostly steady to up $4, with the exception of 6-weights, which were steady to down $2. Heifers were steady to up $3. Sales of #1, 7-weight feeder steers were again divided, with the yearlings selling between $142-152.75, while the small lot of unweaned calves brought $136.
Wyoming: The Winter Livestock Auction of Riverton sold over 2,000 more head of feeders last week compared to the week before. Steers were called mostly steady with $2 discounts on some pee-wee calves, and a few instances of $2-5 higher. Heifers mostly sold steady with the exceptions of heifers under 500 lbs. selling up $5 with instances of up $10. This sale upset the usual pattern with the 36-head lot of #1, 711-lb. unweaned steer calves topping the weight class at $150.50, while the other two lots of yearlings sold between $138-146.
The near-term feeder futures didn’t take things very well last week. The November contract lost a net $2.35 over the course of the week to settle at $146.78 last Thursday, while the January contract lost only a net 22 cents with $145.78 after a week of mostly sideways action. More deferred contracts fared better.
“The 2020 contracts now lead with the most cumulative volume, and for those cattlemen that decided to hold their calves over and wait to sell them in the early 2020 market—well, it wouldn’t be surprising to see that market pay dividends,” commented DTN’s ShayLe Stewart. — Kerry Halladay,WLJ editor
