Live cattle futures closed mixed over the week. The December contract lost 32 cents to close at $152.75, and the February contract gained 38 cents to close at $155.40.
“This week’s cash cattle market has traded mostly steady with last week’s weighted averages, but there are a few bids being thrown out at midday,” wrote ShayLe Stewart, DTN livestock analyst, in her midday Thursday comments.
“The market is also taking note of Thursday’s strong boxed beef prices. The day is confidently trading higher and isn’t downed by the lackadaisical export data that it received Thursday morning.”
Through Thursday, about 65,000 head sold on the cash market. Live steers sold from $148-156, averaging closer to $152. Dressed steers sold from $240-242, averaging $241.
Cash trade for the week ending Nov. 12 totaled 102,284 head. Live steers averaged $152.93, and dressed steers averaged $242.16.
The national weekly direct beef type price distribution for the week of Nov. 7 to Nov. 14 was the following on a live basis:
• Negotiated purchases: $152.91.
• Formula net purchases: $154.01.
• Forward contract net purchases: $152.57.
• Negotiated grid net purchases: $153.54.
On a dressed basis:
• Negotiated purchases: $241.57.
• Formula net purchases: $244.80.
• Forward contract net purchases: $235.22.
• Negotiated grid net purchases: $241.76.
Through Thursday, slaughter totaled 515,000 head, a few thousand head higher than a week earlier. Slaughter the week prior is estimated at 671,000 head. Actual slaughter for the first week of November totaled 667,885 head.
“This publication forecast a late year decline this year in cow slaughter from year over year increases. We were wrong,” the Cattle Report wrote. “This has not occurred, and cow slaughter each week has topped last year, meaning when the culling ends, the impact will be more severe than many observers anticipated.”
Boxed beef prices dropped ahead of the holiday, with the Choice cutout down over $6 to $257.10 and the Select cutout down over $5 to $231.74.
Feeder cattle
“Along with lower corn prices the market is absorbing some spillover support that’s coming from the live cattle complex, (it’s) market also trades higher as traders are anticipating a strong Cattle on Feed report to be unveiled on Friday,” Stewart said.
The November feeder contract lost $2.77 to close at $175.85, and the January contract lost $1.73 to close at $179.97. (Editor’s note: The market report a week earlier in the Nov. 14 WLJ issue incorrectly referred to the November contract as the January contract.)
The CME Feeder Cattle Index lost 12 cents to close at $175.39.
Corn futures were higher, thanks to continued uncertainty in Russian grain conflicts. The December contract gained 14 cents to close at $6.67, and the March contract gained 10 cents to close at $6.69.
Colorado: Winter Livestock in La Junta sold 1,137 head on Tuesday. Compared to a week earlier, steer and heifer calves sold mostly steady on the kinds offered. Feeder steers and heifers were too lightly tested for a comparison. Benchmark steers averaging 777 lbs. sold for $171.
Missouri: Joplin Regional Stockyards in Carthage sold 8,500 head on Monday. Compared to a week earlier, feeder steers traded steady, and feeder heifers traded steady to $3 lower. Benchmark steers averaging 758 lbs. sold between $176-180.50 and averaged $177.94.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 10,600 head on Monday. Feeder cattle and calves sold unevenly steady. Demand was moderate to good. A group of benchmark steers averaging 757 lbs. sold between $173-184.50 and averaged $178.04.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 2,200 head Monday. Compared to the last auction, feeder steers sold steady to $4 lower, except those under 600 lbs., which were $1-4 higher. Feeder heifers sold $1-5 lower, except those under 550 lbs., which were steady to $5 higher. Benchmark steers averaging 767 lbs. sold between $180.50-181 and averaged $180.77. — Anna Miller, WLJ managing editor
