The markets were choppy and weak last week after mostly sideways trading. By the end of the week, cutouts and cash cattle were down, near-term futures were mixed, and feeder cattle auctions were almost unanimously down.
By close of trade Nov. 15, just over 15,000 head of negotiated cash fed cattle had been confirmed sold for the week. Prices stood at $112 live and $178 dressed. This was up from earlier prices set throughout the week, but about $1 lower than the prior week’s averages.
Andrew Gottschalk of Hedgers Edge expected last week’s fat cattle market to be “a weak steady” compared to the prior week but predicted there may be some strength in the cash market this week.
“Packers may once again overplay their hand for next week, as they will need to purchase for full production schedules immediately behind the holiday,” he said on Nov. 15.
The near-term live cattle futures were up week to week, but more deferred contracts were mixed on the week. The December contract gained a net 57 cents with a settlement of $115.15 on Thursday, Nov. 15. The February contract gained almost $3 over the week with a settlement of $119.10.
Cutouts took a slow decline last week, losing about $2 for Choice and $1 for Select. By the Thursday close, the cutouts stood at $213.55 and $197.58, respectively.
“Product values remain under selling pressure ahead of the Thanksgiving holiday,” noted Andrew Gottschalk of Hedgers Edge on Thursday. “A post-holiday price rebound is also expected there.”
Feeder cattle
Prices were almost unanimously down at the surveyed feeder cattle auctions. Losses in some cases were getting into double digits. There was a distinct discount on all calves and un-weaned calves saw an additional level of discounting in most sales.
California: Prices were down on feeders last week at the Cattlemen’s Livestock Market in Galt. Light feeders were called $5-7 down and those over 600 lbs. were down $3-5. Number 1, 7-weight feeder steers ranged from $130-154.50.
Colorado: The La Junta Livestock Commission Company sold slightly more cattle last week than it did the week before. Light steer calves were down $5-8, while steer calves over 500 lbs. were down $2-5 with preference for heavier offerings. Heifer calves followed a similar pattern with prices steady to down $5. Yearling feeders were steady to up $2 for steers and unquoted on the scarce heifers. Three lots of benchmark steers sold, with the two yearling lots ranging from $145.50-150, and the calf lot averaging $142.63.
Kansas: The Winter Livestock Auction sold fewer cattle last week and at mostly lower prices on a limited test. The exception was 6-weight heifers, which sold $7-8 higher. Two lots of #1, 7-weight yearling steers sold, with one group averaging $155 and the other $147.21.
Missouri: Sales and prices were lower last week at the Joplin Regional Stockyards. Calves were down $2-6, and yearlings were too lightly tested for a market trend but showed a weak undertone. Snow was blamed for the low turnout. Benchmark yearling steers ranged from $138-148.
Montana: The Miles City Livestock Commission more than doubled its sale volume last week with almost 5,800 head sold. Prices were mixed, but mostly lower. Steers ranged from steady to down $10, while heifers were down $4-5 for animals under 550 lbs. and mixed down $4 to up $5 for heavier heifers. Bidders wanted preconditioned calves, being both more active in those sales and paying at least a $5 premium compared to calves that had not been preconditioned. One lot of #1, 713-lb. steer calves sold, averaging $144.87.
Nebraska: Sales volumes were almost doubled last week at the Huss Platte Valley Auction. Steer calves were mixed with light calves up $3, while heavy calves were down $2-5. Some long-weaned 8-weight calves were steady. Heifers followed a similar pattern, with lights selling steady to up $3 and heavier heifer calves selling down $2-4. A lot of the calf offering were bawling. Those without vaccinations saw discounts. Standard benchmark yearling steers ranged from $150.50-161.75, while fleshy yearlings and calves sold between $132-143.50.
New Mexico: As a counterpoint, last week’s sale volume at the Clovis Livestock Auction was halved compared to the prior week. Prices were lower for feeders with steer calves down $1-2 except for value-added calves, which were steady, and heifer calves were down $3. Yearling steers were limited, but down $3 where comparable. Most of the benchmark steers that sold were calves. Half of the calf offering was standard quality that sold between $115-130.50, and the other half was value-added and sold between $132-135. The lone lot of #1, 7-weight yearling steers averaged $143.25.
Oklahoma: Feeders were sharply lower at the Oklahoma National Stockyards. Yearling steers were down $6-8 while a limited test of calves traded $4-9 lower. Heifers were down $7-11 for yearlings and $6-9 for calves. Prices on Benchmark steers varied wildly; calves ranged from $125-132, standard yearlings ranged from $140-149, and a lot of “fancy” yearlings averaged $154.75.
South Dakota: The sales volume was down at the Philip Livestock Auction last week and prices were even lower. Most steers were down $6-10, except for light 6-weights, which were down only $2-4. Heifers were down $2-7. Most of the offering were bawling but vaccinated. All of six head of #1, 7-weight steer calves sold at $149.
Wyoming: The Torrington Livestock Commission sold almost 6,300 head of feeders last week. Light steer calves were called sharply higher with other steer calves mixed up $2 to down $3. Light heifer calves were up $3-12 with heavier heifers mixed up and down $3.
The November feeder cattle futures could find little traction last week and ultimately ended the week at a 37-cent loss at $148.63. The January contract on the other hand gained a net $4.05 over the course of the week, settling Thursday at $147.85. Most of those gains came early in the week, following the triple-digit losses of Friday, Nov. 9. — Kerry Halladay, WLJ editor
