Following a week of rapidly falling futures, the board recuperated and closed higher. Cash trade was light through Thursday, but mostly steady with a week earlier.
Live cattle futures bounced back over the week, up about $5 on each contract. The December contract closed at $167.50, and the February contract at $167.92.
“Live cattle trade remains much more sluggish than the feeder cattle complex, although buyer interest continues to slowly develop as traders try to balance technical support with sluggish fundamental market developments at this point,” DTN wrote on Thursday.
Cash trade through Thursday totaled less than 20,000 head. Live steers sold from $165-168, and dressed steers sold from $267-270.
“Packers are developing an interest in building inventory and started with $168 bids that failed to interest sellers who were pricing cattle several dollars higher,” the Cattle Report wrote on Wednesday. “A couple hundred cattle in the North traded at that price. In the South, the possibility of moisture, wet pens and cold is causing some operations to consider holding off sales until after Christmas. Bid/ask spreads are expected to begin narrowing today and by week’s end to establish trading levels.”
Cash trade for the week ending Dec. 10 totaled 66,837 head. Live steers averaged $169.86, and dressed steers averaged $269.73.
The national weekly direct beef type price distribution for the week of Dec. 4-11 was the following on a live basis:
• Negotiated purchases: $170.09.
• Formula net purchases: $178.70.
• Forward contract net purchases: $180.71.
• Negotiated grid net purchases: $181.10.
On a dressed basis:
• Negotiated purchases: $270.08.
• Formula net purchases: $283.13.
• Forward contract net purchases: $285.82.
• Negotiated grid net purchases: $288.02.
Slaughter through Thursday was estimated at 505,000 head, a couple thousand head more than a week earlier. Total slaughter for a week earlier is projected at 635,000 head. Actual slaughter for the week ending Dec. 2 was 639,915 head. The average steer dressed weight was 940 lbs., the same as the prior week.
“More positive news are expectations of a 640k to 645k slaughter this week, the largest since June, which given the big beef movement last week and holiday shortened production around the corner—makes sense,” wrote Cassie Fish, market analyst, in The Beef on Tuesday.
USDA reported “packer submission issues” for Thursday’s boxed beef report, delaying the report’s release. On Wednesday, boxed beef prices closed slightly higher over the week. The Choice cutout gained $1.70 to close at $291.64, and the Select cutout gained 38 cents to close at $259.21.
Feeder cattle
Feeder cattle futures also found their footing over the week. The January contract gained over $9 to close at $219.35, and the March contract gained nearly $9 to close at $220.12.
The CME Feeder Cattle Index was down nearly $7 to $215.33.
“The current shift higher and continued gains over the last few days is positioning for a strong weekly close in all nearby feeder cattle futures,” DTN wrote. “This positive market move is likely to help stimulate additional technical support across the complex despite very little changes in market fundamentals.”
Corn futures closed lower, with the December contract down 12 cents over the week to $4.56 and the March contract down 9 cents to $4.79.
Colorado: Winter Livestock in La Junta sold 4,244 head on Tuesday. Compared to the last auction, feeder steers sold $1-8 higher across all weight brackets, with instances of $4 lower on 500-550 lbs. and 600-650 lbs. steers. Feeder heifers under 400 lbs. sold $2 higher, 400-750 lbs. sold $1-7 lower and over 750 lbs. sold $2 higher. Benchmark steers averaging 719 lbs. sold between $220-230, averaging $224.99.
Kansas: Winter Livestock in Dodge City sold 1,746 head on Wednesday. Compared to the last auction, steer and heifer calves sold unevenly steady. Yearling feeder steers and heifers sold $3-9 higher. Benchmark steers averaging 781 lbs. sold between $219.50-231, averaging $228.01.
Missouri: Joplin Regional Stockyards in Carthage sold 9,000 head on Monday. Compared to a week earlier, feeder steers under 650 lbs. sold $3-5 higher with heavier weights steady to $3 lower. Feeder heifers sold steady. Benchmark steers averaging 781 lbs. sold from $214-221.50, averaging $219.03.
Montana: Miles City Livestock in Miles City sold 1,299 head on Tuesday. Compared to the last auction, yearling steers and heifers were too lightly tested to develop any market trend. Steer calves over 450 lbs. sold generally steady to firm. Heifer calves under 450 lbs. sold $4-8 higher, heifers 450-599 lbs. sold steady to firm and heifers over 600 lbs. were not well compared, but lower undertones were noticed. A group of steers averaging 707 lbs. sold for $238.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 8,500 head on Monday. Compared to a week earlier, feeder steers sold $1-3 higher. Feeder heifers traded fully steady. Steer and heifer calves under 450 lbs. sold $2-4 higher, and over 450 lbs. sold $3-6 lower.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 5,573 head on Monday. Compared to the last auction, light steers 500 lbs. sold substantially higher. Steers 550-600 lbs. sold $8-9 lower, 650-700 lbs. were $10-13 higher and 800-950 lbs. sold $2-7 lower. Light heifers 450-550 lbs. sold $11-16 higher. Heifers 600-800 lbs. traded mostly steady to $2 higher, and 850-950 lbs. were $7-9 lower. Benchmark steers averaging 719 lbs. sold between $231-256.50, averaging $243.35.
Texas: Lonestar Stockyards in Wildorado sold 715 head on Tuesday. Compared to the last auction, feeder steers traded mostly steady to weak. Feeder heifers traded $3-6 lower. There were not enough comparable sales of steer or heifer calves for a market trend. A group of steers averaging 791 lbs. sold for $215. — Anna Miller, WLJ managing editor
