Last week was a pretty good week for cash feeder cattle and futures, but not for futures and the fed cattle market was still a no-show late in the week.
By the afternoon slaughter cattle report from USDA on Thursday, only 2,050 head of negotiated cash fed cattle had been confirmed for the whole week, with half of that selling that day. Though this was nowhere near enough to establish a market trend, the $165 dressed paid Thursday was up from the prior week’s prices of $100-105 (avg. $102.51) live and $160-165 ($162.49) dressed.
“Expectations for cash cattle this week are steady to higher, though packers last week purchased 93k head, the largest volume since the fire, so own more inventory,” commented Cassie Fish of the Beef Report midway through last week.
“Packers appear to be making a significant effort to balance the number of formula cattle slaughtered with the number of negotiated slaughter, another challenge created by the fire,” she continued, referencing the early August Tyson plant fire.
The fire has come to be a seasonal marker for other areas of the market too.
“Boxed beef sales volume post fire has lagged pre-fire levels and short falls have finally been covered,” Fish continued.
“Though beef business has returned to normal, interest in beef doesn’t seem as robust as prior to the disruption. Very plentiful supplies of cheap pork have received attention from retailers and is picking up features.”
Near-term cattle futures spent last week growing in the wake of a bullish Cattle on Feed report. Though it wasn’t a constant upward climb, when measured on a week-to-week basis, everything was up.
In near-term live futures, both the October and the December contracts gained over $3 over the week. On Thursday the October contract had settled at $102.95 and the December contract had settled at $108.75.
“Thursday morning wasn’t promising but low and behold the board closed primarily with gains and the country side took off!” commented DTN’s Livestock Analyst ShayLe Stewart.
“The feeder cattle market has been the steady token this week, and with a bump in dressed cattle prices, it wouldn’t be unlikely to see feeder cattle end the week stronger—not to mention last week’s Cattle on Feed report clearly indicated (with fewer placements moved last month) that there are plenty of cattle feeders to be dispersed this time around.”
Near-term feeder cattle futures also saw net gains, though not as consistently as did the live cattle futures. The September contract gained a net $1.17 with a Thursday settlement of $141.50 and the October contract gained $3.90 with $143.10.
While the feeder futures might not have been the star performer last week, the cash feeder cattle markets certainly put on a good show. In the surveyed auctions, more feeders sold for more money across cattle country. Though there are still some exceptions, most auctions sold medium and large #1 steers weighing 700-800 lbs. in the strong $140s.
Colorado: The Winter Livestock auction of La Junta saw almost double the number of feeder cattle sell last week as compared to the week before, but it was less than half of what the numbers from the same time last year. Steer calves under 600 lbs. were called $3-5 higher, and $2 higher on heavier steer calves. Heifer calves under 500 lbs. were up $2-3 while heavier heifer calves were steady. Feeder steers were up $2-5 and $2-3 on heifers. Only one 16-head lot of #1, 7-weight yearling steers sold last week, averaging $141.
Iowa: There were no comparisons to be had on feeder cattle prices at the Bloomfield Livestock auction due to too few comparable sales. The number of feeder cattle sold was almost triple last week what it had been the week before. Trade was called active and demand good. This was the auction’s annual yearling sale. Two large lots of benchmark yearling steers sold between $143.50-156.
Kansas: The Winter Livestock auction of Pratt sold over 1,000 more head of feeders last week compared to the week before. Steers sold up $2-3 while heifers were mostly unevenly steady with the exception of light 8-weights, which were up $5-6. Feeder calves saw limited comparable sales. Where they existed, 5-weight steer calves were up $2-5. Heifer calves were said to have a lower undertone. Demand was best for long-weaned calves with a vaccination program behind them. Most of the #1 lot offerings were light, but the largest lots were 7-weights and heavier. Benchmark steers sold between $142-152, with a 10-head lot described as fleshy averaging $136.50
Missouri: Feeder cattle offerings were fairly steady at the Joplin Regional Stockyards last week. Calves were called steady, while yearling feeders were up $1-5. Demand for calves was called moderate, but good for yearlings. The offering tended towards the heavier side. Two #1, 7-weight lots sold between $138-151.50.
Montana: The Miles City Livestock Commission sold half again as many feeders last week at 1,555 head compared to the week before. The best test was on 8-weight yearling steers (up $2-3) while heifers over 800 lbs. were up $6-10. The rest of the yearling offering of feeders were too lightly tested for a trend, though higher undertones were noted. Demand was called good to very good. Best demand was on load lots of yearlings rather than packages. The largest #1 lots were on steers over 800 lbs., with only two small lots of #1, 7-weight steers reported sold. They ranged from $146-151.
Nebraska: The Huss Livestock Market saw steady volume of feeders last week, but prices were up. Feeder steers were up $6-10 and heifers were up $3-6. There was no test on calves. The range on benchmark steers was larger in quality than it was in price. The almost-load lot of unweaned calves set the base at $136, though the large lot of fleshy yearlings was close behind with $141. The 11-head lot of “thin-fleshed” yearlings averaged $153, but the large lot of average yearlings ranged from $149.50-154.75.
New Mexico: The sales volume was down at the Clovis Livestock Auction. The report offered no commentary on the sale other than the entire offering was made up of feeders, with 61 percent being steers. There was a two-pronged market on benchmark steers: yearlings ranged narrowly from $137-138, while unweaned calves sold more widely at $119.50-127.75.
Oklahoma: The OKC West-El Reno sale sold more feeder cattle last week at higher prices. Steers were up $2-5, except for cattle over 1,000 lbs., which were said to have a lower undertone on limited comparable sales. Heifers were $4-8 higher. Calves were too lightly tested for a market trend, but a higher undertone was noted. There was wide variety in the offering, its quality, and prices. Standard #1, 7-weight yearling steers ranged from $142.50-152.50. Unweaned calves ranged from $124-138. And the fleshy yearlings connected the two, ranging from $128-141.
South Dakota: The Hub City Livestock Auction sold 4,829 head of feeders last week compared to 1,550 the week before. The best test on comparable sales was for 8-weight steers (steady to up $2) and heifers (steady). Demand was called good to very good on yearlings, while demand was called “hit and miss” on calves regardless of their quality. Two lots of benchmark yearling steers ranged from $144-154.50.
Wyoming: The number of feeders sold last week at the Torrington Livestock auction was up compared to the prior week, making for too few comparable sales on calves. Yearling feeders were up $4-6. Two lots of #1, 7-weight yearling steers sold between $139-153. — Kerry Halladay, WLJ editor
