The cattle market softened over the week as cash trade activity was slow for the second consecutive week. However, demand continues to remain strong.
Live cattle futures were a couple dollars lower over the week, with the December contract down about $2 to $182.95 and the February contract down about $2 to $185.10.
“Even though it was assumed cash cattle prices would be steady at best this week, the live cattle complex is trading lower as traders are disgruntled by the light trade that developed Wednesday afternoon in the North at $290, which is $3 lower than last week’s weighted average,” wrote ShayLe Stewart, DTN livestock analyst, in her Thursday midday comments.
Cash trade through Thursday totaled about 52,000 head. Live steers sold from $182-185, and dressed steers sold from $287-290.
Cash trade for the week ending Nov. 10 totaled 50,010 head. Live steers sold for $186.60, and dressed steers sold for $293.30.
“Packers have been forced to reduce production as margins veer back into the red as boxed beef values make yet another new low for the move today,” wrote Cassie Fish, market analyst, in The Beef on Thursday.
Slaughter through Thursday totaled about 483,000 head, about 11,000 head less than a week earlier. Total slaughter for a week earlier is projected at 619,000 head. Actual slaughter for the week ending Nov. 2 was 615,990 head. The average steer dressed weight was 958 lbs., 1 lb. above the prior week.
“Demand has been the star of the 2024 cattle market,” Fish said. “Despite news reports of tight cattle numbers, 2024 fed cattle slaughter will be very close to 2023 and may exceed it by 50k head.”
Boxed beef prices continue to decline. The Choice cutout lost about $5 to close at $303.80, and the Select cutout lost about $3 to close at $276.66.
Feeder cattle
Feeder cattle futures traded mostly steady over the week, with the November contract down 3 cents to $247.62 and the January contract down about a dollar to $243.20.
The CME Feeder Cattle Index gained $1.12 to close at $251.04.
Corn futures were down about 10 cents apiece, with the December contract at $4.19 and the March contract at $4.30.
“Rainy weather slowed movement of cattle to market and many auction markets reported light receipts,” the Cattle Report said. “The rains may have slowed receipts in many areas but they jumpstarted prices for light cattle.”
Stewart wrote on Monday: “What was potentially the most impressive note throughout the day for the feeder cattle market was the continued demand in the countryside for feeders and calves. Prices were noted as sharply higher in numerous sale reports, as buyers are still needing more cattle for their pens.”
Missouri: Joplin Regional Stockyards in Carthage sold 7,500 head on Monday. Compared to a week earlier, feeder steers under 725 lbs. sold $5-20 higher with heavier weights selling steady to $3 higher. Feeder heifers sold steady to $10 higher. Benchmark steers averaging 769 lbs. sold from $252-266, averaging $261.69.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 6,200 head on Monday. Compared to a week earlier, feeder steers sold $2-4 higher, except 600-700 lbs. sold $10 higher. Feeder heifers sold steady to $2 higher. Steer and heifer calves sold $15-20 higher. Benchmark steers averaging 714 lbs. sold from $252-259.50, averaging $255.31.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 3,548 head on Monday. Compared to a week earlier, steer and heifer calves sold with higher undertones compared to a limited test. Yearling steers sold $5-10 lower, and heifers sold $4-6 lower. Benchmark steers averaging 715 lbs. sold from $271-275, averaging $272.58. — Anna Miller, WLJ managing editor
