After live cattle and feeders each experienced plummeting figures following a bearish Cattle on Feed report, they were able to recover and find their footing again. Cash trade however, was at a standstill and inactive throughout the majority of the week.
Live cattle futures were able to pick up their lost momentum and climb higher following the nosedive of a week earlier. The December contract gained over $5 to close at $184.67, and the February contract gained more than $6 to close at $186.42.
Cash trade was practically nonexistent through Thursday afternoon, with less than 3,000 head sold. Live steers sold from $181-185, and there was no trend on dressed steers.
“A few cattle were reported sold in the South Wednesday at $185/cwt, which is not enough to set a market tone, but still evidence that steady to positive price moves are expected through the end of the week,” DTN wrote in its Thursday midday comments. “If the futures market support continues, it is likely that feeders will carry this bullish focus into end of the week negotiations.”
Cash trade for the week ending Oct. 29 totaled 77,466 head. Live steers averaged $184.04, and dressed steers averaged $290.19.
Slaughter through Thursday is estimated at 496,000 head, about 6,000 head short of a week earlier. Projected total slaughter for the week prior is 636,000 head. Actual slaughter for the week ending Oct. 21 was 637,931 head. The average steer dressed weight was 927 lbs., the same as last week.
“The year-on-year reductions in slaughter are reflective of the decline in the nation’s cattle herd—both cows and fed cattle,” the Cattle Report wrote on Thursday. “The cow slaughter will increase during the final quarter of this year but remain under last year.”
Boxed beef prices traded lower over the week, with the Choice cutout down about $2 to $304.53 and the Select cutout down more than $5 to $274.34.
“The rib and the loin are still holding week-over-week gains but it is disappointing to see the Choice cutout reported at $302.67 on November 1 when just two days ago, the market was reported at $309.28,” Cassie Fish, market analyst, wrote in The Beef on Wednesday. “Will have to wait and see if this dump in end cut prices was enough to get product cleaned up overall, so the cutout can finally make more headway.”
Feeder cattle
Feeder cattle futures also climbed higher over the week. The November contract gained more than $6 to close at $242.62, and the January contract gained more than $7 to close at $242.17.
“Although prices are still well below any significant resistance level that would point to a market pullback in the complex, it would not be surprising if a light to moderate correction developed in the coming days based on lack of volume more than a change of market direction,” DTN said.
The CME Feeder Cattle Index was lower by more than $3 to $237.25.
Corn futures lost some value, with the December contract down 9 cents to $4.70 and the March contract down 8 cents to $4.85.
Missouri: Joplin Regional Stockyards in Carthage sold 2,680 head on Monday. Compared to a week earlier, feeder steers sold steady and feeder heifers under 600 lbs. sold $6-10 higher. Heavier weights sold steady. Benchmark steers averaging 790 lbs. averaged $248.50.
Nebraska: Bassett Livestock Auction in Bassett sold 1,890 head on Wednesday. Compared to a week earlier, 550-lb. steers traded $3 higher, 600-lb. steers traded $8 lower, 900-lb. steers traded $4 higher and 500-lb. heifers traded steady. Benchmark steers averaging 766 lbs. sold for $243.
Oklahoma: Oklahoma National Feedyards in Oklahoma City sold 2,200 head on Monday. Compared to the previous sale, numbers were limited due to heavy rains and sharply colder temperatures. Feeder cattle and calves were not well-tested. Benchmark steers averaging 769 lbs. sold from $226-235, averaging $229.86.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 905 head on Monday. Compared to a week earlier, there was a lighter offering of steer and heifer calves. There was improved demand for calves and yearlings. Benchmark steers averaging 663 lbs. sold for $260. — Anna Miller, WLJ managing editor
