Cash trade was light through Thursday at steady to $1 higher than the holiday-shortened jump of over $3. Live and feeder cattle traded higher throughout most of the week but closed lower compared to the previous shortened WLJ press week.
Since Tuesday of Thanksgiving week, live cattle traded lower. The December contract was down 75 cents to $153.05, and the February contract was down $1 to $155.42.
“The live cattle futures market continues to linger within a dollar or two of its recent contract highs, but without the day-to-day volatility of more headline-driven markets,” Elaine Kub, DTN contributing analyst, wrote in the Thursday midday comments.
Through Thursday, cash trade was 31,000 head. Live steers traded between $155-157, averaging $156.01, and dressed steers sold at $245.
“Last week’s northern dressed business was marked at $245, which was itself a big $3 week-over-week jump,” Kub wrote in Wednesday’s closing comments. “It may be tricky for the market to sustain gains like that two weeks in a row, although the bullish mood spilling over from outside markets could help.”
Compared to the previous holiday-shortened week, live steers in the South traded $1 higher at $155. In Nebraska and the western Corn Belt, live and dressed purchases traded steady from $155-158 and at $245, respectively.
Cash trade for the holiday-shortened week was 94,864 head. Live steers averaged $156.12, and dressed steers averaged $244.98.
The national weekly direct beef type price distribution for the week of Nov. 21 to Nov. 28 was the following on a live basis:
• Negotiated purchases: $156.16.
• Formula net purchases: $154.50.
• Forward contract net purchases: $150.93.
• Negotiated grid net purchases: $153.73.
On a dressed basis:
• Negotiated purchases: $245.11.
• Formula net purchases: $245.76.
• Forward contract net purchases: $237.08.
• Negotiated grid net purchases: $244.50.
Slaughter through Thursday was expected to be 512,000 head. Slaughter volumes for the week were 596,000 head—down 83,000 head from the previous week because of the holiday but 23,000 over the same week last year. According to the Cattle Report, this is the largest Thanksgiving week slaughter since 2006. Actual slaughter for the week ending Nov. 19 was 671,771 head (steers 45.1%, heifers 32%). Steer weights were 930 lbs.
Boxed beef prices closed lower, with the Choice cutout down $2.93 to $253.57 and the Select cutout down $9.18 to $225.
“Boxed beef values have slumped overall as the strong rib, trading at the highest point of 2022 last week, is not enough to offset significant weakness in the chuck, the largest primal,” Cassie Fish, market analyst for The Beef, wrote. “The chuck lost $13 week over week while rib gained $21, surpassing prices the last two years, setting a record for that week. There are one to two weeks left of the seasonal rib push. Plenty of other items, like the brisket, flank have struggled all fall relative to year-ago pricing.”
USDA’s export report for the Nov. 18-24 period showed net sales of 15,400 metric tons (mt) for 2022, primarily for China (7,200 mt), Japan (2,600 mt), Canada (1,900 mt), South Korea (1,700 mt) and Mexico (800 mt). Exports were 15,800 mt, primarily to Japan (4,200 mt), South Korea (4,000 mt), China (3,000 mt) and Mexico (1,400 mt).
Feeder cattle
Feeder cattle also closed lower for the period of Nov. 22 through Dec. 1. The January contract was down 60 cents to $181.07, and the March contract was down 27 cents to $184.30. The CME Feeder Cattle Index was up $3.76 to $178.40.
Corn closed mixed due to a weak Export Sales report and the Environmental Protection Agency’s mandates for corn-based ethanol use in 2023-25. The December contract was down 6 cents to $6.50, and the March contract was up a penny to $6.60.
Colorado: Winter Livestock in La Junta sold 4,580 head Tuesday. Compared to the last auction, steer calves sold steady to $3 higher, except for 500-600 lb. preconditioned weaned calves, which were $8-10 higher. Heifer calves under 500 lbs. that were preconditioned and weaned for 45 days or longer sold $10-12 higher, and over 500 lbs. were steady to $2 higher. Yearling feeder steers sold steady to $2 higher, and yearling feeder heifers were mostly steady. Benchmark steers averaging 720 lbs. sold between $170-179, averaging $175.65.
Kansas: Winter Livestock in Dodge City sold 3,512 head Wednesday. Compared to the previous auction, feeder steers 400-900 lbs. sold $5-8 higher. Feeder heifers 400-900 lbs. sold $4-6 higher. Benchmark steers averaging 781 lbs. sold between $178-182.50 and averaged $179.03.
Missouri: Joplin Regional Stockyards in Carthage sold 10,063 head Monday. Compared to a week earlier, steers under 800 lbs. traded steady, with heavier weights trading steady to $2 lower. Feeder heifers under 475 lbs. traded steady to $3 higher, with heavier weights trading steady. Benchmark steers averaging 773 lbs. sold between $178-181.50, averaging $180.58.
Nebraska: Huss Livestock Market in Kearney sold 3,880 head Wednesday. Compared to the last auction, steer and heifer calves sold unevenly steady. Benchmark steers averaging 768 lbs. sold between $184.25-190.50, averaging $188.90.
New Mexico: Clovis Livestock Auction in Clovis sold 2,263 head Wednesday. Compared to the previous auction, steer calves sold steady to $5 higher. Heifer calves sold $2-6 higher. Feeder steers traded mostly $5-10 higher. Feeder heifers sold mostly steady on comparable sales. Benchmark steers averaging 761 lbs. sold between $156-167, averaging $163.79.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 6,500 head on Monday. Compared to a week earlier, feeder steers and heifers sold $1-3 higher, with instances of $6-10 higher. Steer calves sold $3-7 higher, and heifer calves sold steady to $3 lower. Benchmark steers averaging 768 lbs. sold between $173-188, averaging $184.40.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 3,850 head Monday. Compared to the previous auction, feeder steers and heifers sold $2-6 lower, except 400-500 lb. steers, which were $2-4 higher. Benchmark steers averaging 728 lbs. sold between $172-183 and averaged $179.47. — Charles Wallace, WLJ editor
