Futures were mixed over the week, while cash trade remained subdued as packers hesitated to procure more cattle amid steady supplies and declining boxed beef prices.
Live cattle futures were mixed over the week. The December contract lost a little less than 50 cents to close at $185.82, and the February contract gained 65 cents to close at $187.42.
“Things are just as quiet in the country as the negotiated fed cattle trade has yet to occur even though it’s Thursday at noon,” wrote Cassie Fish, market analyst, in The Beef on Thursday. “Packers own a lot of cattle thanks to four consecutive weeks of sizeable buys. And given that and the sloppy cutout, packers are not eager to worsen margins by paying steady, let alone higher for this week’s fed cattle buy.”
Cash trade through Thursday totaled less than 5,000 head. Live steers sold from $186-188, and dressed steers sold for $294.
Cash trade for the week ending Nov. 3 totaled 87,606 head. Live steers averaged $189.79, and dressed steers averaged $297.28.
The national weekly direct beef type price distribution for the week of Oct. 28 to Nov. 4 was the following on a live basis:
• Negotiated purchases: $189.83.
• Formula net purchases: $194.26.
• Forward contract net purchases: $188.39.
• Negotiated grid net purchases: $194.53.
On a dressed basis:
• Negotiated purchases: $297.48.
• Formula net purchases: $302.38.
• Forward contract net purchases: $298.04.
• Negotiated grid net purchases: $300.
Slaughter through Thursday totaled about 494,000 head, a few thousand head more than a week earlier. Total slaughter for a week earlier is projected at 615,000 head. Actual slaughter for the week ending Oct. 26 was 625,186 head. The average steer dressed weight was 957 lbs., down 3 lbs. from the prior week.
Boxed beef prices fell over the week. The Choice cutout lost more than $8 to close at $309.46, and the Select cutout lost $5.65 to close at $279.72.
“The ends of the carcass have been under seasonal pressure and the Select quality grade has been especially weak and the Select cutout appears vulnerable for further downside,” Fish said.
September beef exports were reported down 3% year to date from a year earlier, while imports are up 21% year to date from a year ago. Imports increased from Australia, Uruguay, Brazil and Argentina. Fish noted the U.S. has not been this much of a net importer of beef since 2008.
Feeder cattle
Feeder cattle futures saw gains over the week. The November contract gained $2.28 to close at $247.65, and the January contract gained $3 to close at $244.32.
“Between the support of the live cattle complex’s higher trend and the continued support of strong buyer demand in the countryside, the market has all the support it needs to continue to press onward into the afternoon,” ShayLe Stewart, DTN livestock analyst, wrote in her Thursday midday comments.
The CME Feeder Cattle Index lost $1.28 to close at $249.92.
Corn futures were higher over the week. The December contract gained 17 cents to close at $4.27, and the March contract gained 14 cents to close at $4.40.
Missouri: Joplin Regional Stockyards in Carthage sold 5,403 head on Monday. Compared to a week earlier, feeder steers under 625 lbs. sold from $10 lower to $2 higher. Heavier weights sold from $3 lower to $6 higher. Feeder heifers sold steady to $8 lower. Benchmark steers averaging 766 lbs. sold from $253.50-271, averaging $260.62.
Nebraska: Tri-State Livestock in McCook sold 1,698 head on Monday. Compared to the previous auction, steers and heifers had a lower undertone, except steers 400-450 lbs., which were $7 higher. A group of steers averaging 947 lbs. sold for $258.50.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 1,990 head on Monday. Compared to a week earlier, feeder cattle and calves were not well tested. Demand was moderate to good. Benchmark steers averaging 719 lbs. sold from $248-254, averaging $251.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 2,817 head on Monday. Compared to a week earlier, there was a limited number of light steers. Steers 550 lbs. sold $9 higher, 800 lbs. sold $3 higher, 850 lbs. sold $12 higher with instances of sharply higher and 950 lbs. sold $11 higher. Heifers 700 lbs. sold $8-9 lower, 750 lbs. sold $3 lower, 800 lbs. sold $1 higher, 850 lbs. sold $3-4 higher and 900 lbs. sold $7-8 higher. Benchmark steers averaging 763 lbs. sold from $243-265.50, averaging $261.48.
Wyoming: Winter Livestock in Riverton sold 2,902 head on Tuesday. Compared to the last auction, feeder steers under 500 lbs. sold with instances of $8-11 lower, over 500 lbs. sold with instances of $3-5 higher and 600 lbs. were $9 lower. Heifer calves under 400 lbs. sold $7-12 lower, over 400 lbs. sold with instances of $3-10 higher, 450 lbs. calves were $4-6 lower and over 600 lbs. sold $9-12 lower. A group of steers averaging 679 lbs. sold for $255. — Anna Miller, WLJ managing editor
