It was a lot of chop and churn in the futures markets last week, but cash cattle and beef took a decidedly upward track.
By the close of trade Thursday, Oct. 18, over 80,000 head of negotiated cash fed cattle had been confirmed sold for the week, with large buys spread out on Wednesday and Thursday. Thursday’s prices—at $108-111 (average $110.82) live and $173-176 ($174.82) dressed—upheld market analysts’ expectations of a steady-to-higher trade compared to the prior week’s averages of $108.60 live and $172.07 dressed.
Over the course of the week, the near-term live cattle futures gained slightly, but on a day-to-day level the movement was mostly sideways. By Thursday’s settlement, the October contract stood at $113.08, up 75 cents compared to Friday, Oct. 12. The December contract gained $1 with $117.18.
The Choice beef cutout gained handily last week, gaining $4.11 compared to the Oct. 12 close with $206.82. The Select cutout gained only a net 7 cents over the course of the week with $192.35.
The availability and demand for cash feeder cattle spiked last week with several auctions having sales volumes several times larger than the prior week. Prices on medium and large #1 steers weighing between 700-800 lbs. were solidly in the $150s and $160s.
Colorado: The La Junta Livestock Commission Company sold almost 4,000 head last week with mid-weight steer and heifer calves selling up $3-5 and instances of $8 higher. Calves over 700 lbs. and yearlings were steady but lightly tested. One lot of 51 head of 732-lb., #1 steer calves averaged $154.81.
Kansas: The Winter Livestock Auction held a special calf sale last week, making comparable sales difficult in some cases, particularly given the low volume at the previous sale. Calves were said to have a high undertone on very good demand. The best comparisons existed on 7-weight yearling steers, up $7-8, and 8-weight heifers, which were steady. Several medium-sized lots of benchmark yearling steers ranged from $153-164.
Missouri: The Joplin Regional Stockyards sold just under 5,000 head of feeders last week. Calves were down $6-12 while yearlings were down $3-6. Several small packages of benchmark steers sold between $145-163 for yearlings and $136-140 for calves.
Montana: The Miles City Livestock Commission sold over 4,400 head of cattle last week, but yearling feeders were too lightly tested for a market trend, though they were said to have a lower undertone. Calves were called sharply higher on comparable sales, with 3- through 6-weights selling steady to up $10, preference for lighter calves. Heifer calves were uneven, selling up $2 to down $3. Benchmark steers sold between $156.50-159.75.
Nebraska: The Bassett Livestock Auction Market doubled its sale volume last week, making comparisons difficult. The best test was on 9-weight steers, down $6, and 8-weight heifers, which were called unevenly steady. Number 1, 7-weight yearling steers sold between $162-168.50.
New Mexico: The Clovis Livestock Auction continued to break up feeder cattle from cull cattle into two different days of selling. Last week saw the volume of feeder cattle increase significantly. Steer calves were called mostly steady, while heifer calves were steady to up $2. No comment on yearlings due to light receipts on that class of feeders the week before. Two lots of benchmark steer calves sold between $128-137, while a pair of #1, 757-lb. yearling steers sold for $145.
Oklahoma: The OKC West-El Reno sale sold feeder steers $3-5 higher last week, but heifers were too lightly tested for a market trend. Calves were called mostly steady on limited comparable sales. Yearling benchmark steers sold between $157-164, while a single lot of 14, 715-lb. steer calves averaged $135.50.
South Dakota: The Philip Livestock Auction really outstripped itself and other auctions in the state last week with a sale volume over 8,150 head, more than double its own receipts from the week before and notably larger than others. Light steer calves sold up $5-12 with preference for lighter animals. Mid-weight steer calves and yearlings sold steady to up $2. Heifers under 650 lbs. were mixed, up $2 to down $3. No comment on feeders over 700 lbs. One 75-head lot of #1, 753-lb. steer calves averaged $155.83.
Wyoming: The Torrington Livestock Commission saw three times the volume of sales last week compared to the week before. Steer calves were steady, heifer calves were up $2-10, and yearling feeders were called steady on comparable sales. Two very large lots of #1, 7-weight yearling steers sold, with little difference between the light (722 lbs.) and heavy (769 lbs.) lots at average prices of $161.49 and $161.04 respectively.
Near-term feeder cattle futures were mixed last week. The October contract gained 55 cents over the course of the week with a settle of $155.25 but the November contract lost a net 20 cents with $154.43. — Kerry Halladay, WLJ editor
