Cattle prices climbed higher this week, with cash trade reaching as high as $195 live and $305 dressed. Futures were also higher on the board. Feeders were holding firm, knowing packers need numbers for the coming weeks.
Live cattle futures closed about $4 higher respectively, with the December contract at $192.12 and the February contract at $190.85.
Cash trade through Thursday totaled about 55,000 head. Live steers sold from $192-195, and dressed steers sold from $298-305.
“Has higher money allowed the packer to gather volume?” asked Cassie Fish, market analyst, in The Beef on Thursday. “So far the answer seems to be no as cattle feeders are reluctant to let go of many cattle at the sharply higher money. Packers are trapped in an uncomfortable position as they must have inventory to supply the production schedules planned for the next couple of weeks.”
Cash trade through Dec. 8 totaled 75,080 head. Live steers averaged $190.95, and dressed steers averaged $297.64.
Slaughter through Thursday totaled about 489,000 head, compared to 485,000 head a week earlier. Total slaughter for the week earlier is projected at 614,000 head. Actual slaughter for the holiday-shortened week ending Nov. 30 was 532,898 head. The average steer dressed weight was 954 lbs., 2 lbs. above the prior week.
Boxed beef prices saw gains over the week, with the Choice cutout up about $8 to $315.24 and the Select cutout up about $3 to $280.48.
“Boxed beef values have seasonally topped placing the packer between the needs to supply production to support order fulfillment and deteriorating margins. But that’s the packers’ problem and the cattle feeder is benefiting for now,” Fish said.
USDA’s latest Cattle on Feed report, set to be released on Dec. 13, was expected to show placements steady with a year earlier. Placements were predicted to be down by 3.5% and marketings were projected to be 2% lower.
Feeder cattle
Feeder cattle futures also closed about $4 higher, with the January contract at $258.35 and the March contract at $258.57.
“As of late, the feeder cattle market had seemed to technically stall out, as the market was waiting for confirmation that higher prices were indeed where traders wanted to take the complex,” wrote ShayLe Stewart, DTN livestock analyst, in her Wednesday midday comments. “And thankfully, Wednesday’s gust of support delivered just that.”
The CME Feeder Cattle Index gained $2.60 to close at $263.07.
Corn futures saw some gains, with the December contract up 5 cents to $4.31 and the March contract up 15 cents to $4.43.
Missouri: Joplin Regional Stockyards in Carthage sold 13,500 head on Monday. Compared to a week earlier, feeder steers sold from $5 lower to $8 higher. Feeder heifers sold from $3 lower to $5 higher. Benchmark steers averaging 788 lbs. sold from $264-265, averaging $264.40. Montana: Miles City Livestock in Miles City sold 2,021 head on Tuesday. Compared to the previous auction, steers over 450 lbs. sold steady to $5 higher. Heifers over 450 lbs. sold
mostly $10-15 higher. A group of unweaned steers averaging 655 lbs. sold for $287.50-296, averaging $295.74.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 13,234 head on Monday. Compared to the last auction, feeder steers sold $3-9 lower and feeder heifers traded $2-7 lower. Steer and heifer calves sold $10-15 lower. Benchmark steers averaging 720 lbs. sold for $234-278, averaging $263.42. — Anna Miller, WLJ managing editor
