There was a lot of chop in last week’s market, but that up and down didn’t amount to much but flat trade in most areas. The key exception was the cutouts.
Over the course of the week, the Choice cutout gained over $5 to close Thursday at $218.55. The Select cutout gained about the same with a close of $204.25.
“After attaining our initial price objective at $215, product values should continue to advance into the third week of November,” predicted Andrew Gottschalk of Hedgers Edge.
“The next level of resistance is at $225. The greatest risk to the market is an external shock—anything that would endanger domestic consumer confidence (which is at an 18-year high).”
Unlike cash beef however, cash cattle—both fed and feeder cattle—struggled to maintain their levels from the week before. By close of trade Thursday, just under 13,000 head of negotiated cash fed cattle had been confirmed sold for the week. Prices were $113-114 (average $113.52) live and $180 dressed. This was steady to lower compared to the prior week’s averages of $114.14 live and $179.97 dressed.
Cash feeder cattle auctions were generally mixed, with larger offerings and lower prices. Several markets showed a distinct two-tiered pricing system for yearlings versus calves while others did not. Calf offerings were notably more numerous. Benchmark medium and large #1 steers weighing between $700-800 lbs. were reliably in the $140s-160s unless they were calves, which were wild cards.
Colorado: The La Junta Livestock Commission Company saw steer and heifer calves steady to $2 lower. Yearling steers were called scarce while yearling heifers were up $5 on attractive offerings. Most of the #1 steer offering was light, with the 11 head of 7-weights representing the heaviest in the class. They ranged from $147-148.
Kansas: There were few feeder steers on offer at the Winter Livestock Auction of Dodge City, KS last week. Seven-weights were called $1-8 lower, which was the best test. Heifers were also thinly traded and $1-3 lower on what was comparable. Comparable trades on feeder calves were spotty; 5-weight steers were up $3-9 and heifers were said to have a lower undertone. Two decent-sized lots of #1, 7-weight yearling steers sold between $144.50-151.50.
Missouri: The Joplin Regional Stockyards kept up steady trade volumes, but mixed prices on feeders. Calves were called steady to $5 lower, with discounts going to unweaned calves. Yearlings meanwhile were called steady to $3 higher. A two-tiered market was evident in the prices on benchmark steers; yearlings ranged from $151-162, and calves ranged from $130-142.
Montana: Almost 5,600 head of cattle sold last week at the Miles City Livestock Commission. Yearling feeders were too lightly tested, but steer calves sold steady to $6 higher, with the exception of light 5-weights, which were discounted $2. Heifer calves sold up $3-10 with preference for calves under 500 lbs. Preconditioned calves got more bidders than those without. Two lots of benchmark steers sold; the 18-head lot of 728-lb. calves averaged $151 and the 89-head lot of 791-lb. yearlings averaged $162.75.
Nebraska: Most of the calves had their preconditioning shots under their belts at the Huss Platte Valle Auction last week. Steer calves were up $2-6 while the heifer calves were steady to $4 higher. There was no comment on yearling feeders. There were a lot of #1, 7-weight offerings sold, with prices ranging from $145-165, inclusive of calves.
New Mexico: Feeder cattle on offer just keep getting more numerous at the Clovis Livestock Auction, which is still dividing its sale across two days due to volume. Almost 3,300 head of feeders sold last week. No comparisons were available on yearlings due to limited receipts, but steer calves were up $3-5 and heifer calves were up $1-4. A small lot of benchmark yearling steers averaged $148.33, and a pair of benchmark calf lots ranged from $124.50-137.50.
Oklahoma: Receipts grew tremendously at the National Stockyards last week with almost 12,800 head sold. Feeder steers were called uneven with those over 800 lbs. steady to $4 higher and those under 800 lbs. down $2-3. Heifers were up $2-3. Steer calves were up $1-4 and heifer calves were steady to up $2. The report noted that buyers were very selective regarding number of days weaned with 60-75 not being enough for them. Benchmark calves and fleshy yearlings were the lower of the two market tiers, ranging from $139.50-149, and yearlings ranged from $150-160.
South Dakota: The Philip Livestock Auction sold over 10,600 head last week. Feeder steers were mixed, ranging from down $4 to up $2 on no observable trend in weight preference. Heifers were steady to down $6 with lighter heifers seeing more of a discount. Prices on #1, 7-weight steers differed little between calves and yearlings, with all ranging from $157-166.
Texas: The Amarillo Livestock Auction had no market trends to offer as it has not had a sale recently. Trade was called fairly active on moderate to good demand. A 13-head lot of #1, 719-lb. calves averaged $130.15.
Wyoming: The Riverton Livestock Auction sold almost 8,000 head last week. There were few comparisons between that sale and the prior special calf and yearling sale. The best comparisons were on calves, which were down $2-9 and heifers were down $3-5. There were no #1, 7-weight steers reported sold, but #1, 6-weight calves sold between $147.50-164.
Near-term live and feeder cattle futures were mixed as well. For live cattle, the October contract left the board, settling on Wednesday for the last time, at $115.85, up almost $2 compared to the Oct. 26 settle. The December contract however lost over $1 over the week with $117.13.
In feeder cattle contracts, the dynamic was reversed. The November contract lost $1.50 to settle at $153.30 and the January contract gained 90 cents with $150.60.
“Despite these price movements, futures remain in a downtrend,” commented Robin Schmahl, DTN contributing analyst.
“With live cattle futures in a sideways trend with a bias toward the bottom of the range, feeder futures have little incentive to change direction.” — Kerry Halladay, WLJ editor
