Preparations for the upcoming Thanksgiving holiday drove the market higher, although cash trade was hesitant ahead of the anticipated Cattle on Feed report.
Live cattle futures gained a couple of dollars over the week, with the December contract up $2.65 to $185.60 and the February contract up $2.32 to $187.42.
“It is a fundamental improvement to see boxed beef prices higher, but before traders can find much stability in that price direction change, they need to see multiple days of stronger boxed beef prices which would show consistency from consumers,” wrote ShayLe Stewart, DTN livestock analyst, in her midday Thursday comments.
Cash trade for the week through Thursday afternoon totaled about 12,000 head. Live steers sold from $184.50-185, and dressed steers sold from $288-290.
“Trade could develop this afternoon, but it’s just as likely that trade could be delayed until Friday as packers and feedlot managers again will go toe-to-toe this week,” Stewart said.
Cash trade for the week ending Nov. 10 totaled 74,093 head. Live steers averaged $184.81, and dressed steers averaged $290.97.
The national weekly direct beef type price distribution for the week of Nov. 11-18 was the following on a live basis:
• Negotiated purchases: $184.87.
• Formula net purchases: $191.84.
• Forward contract net purchases: $189.13.
• Negotiated grid net purchases: $194.68.
On a dressed basis:
• Negotiated purchases: $290.61.
• Formula net purchases: $302.27.
• Forward contract net purchases: $300.61.
• Negotiated grid net purchases: $302.21.
Slaughter through Thursday totaled about 496,000 head, compared to 483,000 head a week earlier. Total slaughter for a week earlier is projected at 606,000 head. Actual slaughter for the week ending Nov. 9 was 620,666 head. The average steer dressed weight was 960 lbs., 2 lbs. above the prior week.
“Processors are running well ahead of last week for slaughter volumes following the lead of retailers who are ramping up inventories in an effort to have product on hand after the holiday,” the Cattle Report wrote on Thursday.
Boxed beef prices were mixed over the week. The Choice cutout gained about $3 to close at $306.79, and the Select cutout lost about $4 to close at $272.92.
“The attention of the market will turn to the middle meats as the holiday season approaches. Beef features will be highlighted by the ribs that will be popular for holiday fare,” the Cattle Report said.
USDA was set to release its latest Cattle on Feed report on Friday. Pre-report estimates predicted cattle on feed would be slightly less than a year earlier, with placements and marketings a few percentage points higher.
Feeder cattle
Feeder cattle futures gained several dollars over the week. The November contract gained $7.50 to close at $255.12, and the January contract gained $10.25 to close at $253.45.
The CME Feeder Cattle Index gained $3.23 to close at $254.27.
Corn futures saw some gains over the week, with the December contract up 7 cents to $4.26 and the March contract up 6 cents to $4.36.
“Even though buyer demand is still excellent throughout the countryside for both feeders and calves, it’s likely that traders will remain cautious until they see what Friday’s Cattle on Feed report yields,” Stewart wrote on Wednesday. Stewart noted that buyer demand in the countryside has been “utterly impeccable,” as shown by the CME Feeder Cattle Index.
Several sale barns will be closed for the upcoming Thanksgiving holiday.
Kansas: Winter Livestock in Dodge City sold 991 head on Wednesday. Compared to a week earlier, feeder steers and heifers were not well tested and a higher undertone was noted. Benchmark steers averaging 791 lbs. sold from $251-257, averaging $255.19.
Missouri: Joplin Regional Stockyards in Carthage sold 8,500 head on Monday. Compared to a week earlier, feeder steers sold from $5 lower to $8 higher and feeder heifers sold from $3 lower to $2 higher. Benchmark steers averaging 765 lbs. sold from $254-274, averaging $266.32.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 8,000 head on Monday. Compared to a week earlier, feeder steers and heifers sold steady in a light test. Steer and heifer calves over 450 lbs. sold steady, and under 450 lbs. sold $10 higher. Benchmark steers averaging 781 lbs. sold from $249-255, averaging $252.8.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 4,036 head on Monday. Compared to the last auction, steer calves under 550 lbs. were not well compared and over 550 lbs. sold with steady to higher undertones. Heifer calves under 500 lbs. sold with lower undertones, while 500-600 lbs. were $5-10 higher. Yearling feeder steers sold steady to $2 higher, and yearling heifers traded steady, with instances of $6 higher on 750 lbs. Benchmark steers averaging 775 lbs. sold for $268-275, averaging $269.88.
Wyoming: Torrington Livestock in Torrington sold 5,000 head on Wednesday. Compared to the previous sale, steer and heifer calves traded sharply higher under 500 lbs. Calves over 500 lbs. traded mostly steady. Benchmark steers averaging 665 lbs. sold from $278-289, averaging $281.33. — Anna Miller, WLJ managing editor
