Thursday markets
The cattle complex closed mixed, with live cattle trading higher on a stronger export report and feeder cattle lower as corn rallied.
Live cattle were slightly higher, with the December contract up 27 cents to $135.27 and the February contract up 47 cents to $137.05.
Cash trade was light today, with 5,850 head selling between $136-138, averaging $137.59. Dressed steers sold between $218-220 and averaged $218.95. Negotiated cash trading has been limited on light demand in all major feeding regions—not enough purchases in any region for a market trend. On the formula side, 31,500 head averaging 896 lbs. sold for $227.55.
“The cash cattle market hasn’t seen any renewed interest and it’s likely this week’s trade could be light as feedlots want more money and packers aren’t willing to pay higher prices,” ShayLe Stewart, DTN livestock analyst, wrote in the midday comments. “Thankfully feedlots sit in a positive position in regards to their showlists and don’t need to sell cattle as their inventory is manageable.”
Slaughter for today is projected to be 122,000 head, the same as last week. Wednesday’s slaughter was revised downward to 113,000 head due to weather conditions.
The actual slaughter for the week ending Dec. 4 was 682,269 head. Steer dressed weight was 928 lbs., up 2 lbs. from last week.
“USDA reported actual slaughter and carcass data today and steer carcass weights pushed to a new high for 2021 at 928 pounds for the week ended December 4,” said Cassie Fish, market analyst for The Beef. “That takes weights to an all-time high for any time in history for early December, exceeding last year by 7 pounds. No wonder beef production in 2021 will be a record!”
USDA’s Economic Research Service released the December Livestock, Dairy and Poultry Outlook report, raising beef production for 2021 to 27.895 billion lbs. on higher fed cattle slaughter and heavier carcass weights. October’s beef imports totaled 293 million lbs., up 17 percent from a year ago. The 2021 annual forecast for beef imports was raised 55 million lbs. from last month to 3.315 billion lbs. The 2022 beef import forecast was increased to 3.265 billion lbs. Beef exports in October were up 281 million lbs., 9 percent above last year. The annual forecasts for 2021 and 2022 beef exports were unchanged from last month at 3.455 and 3.270 billion lbs., respectively.
Fish noted the smaller slaughter yesterday due to weather conditions pushed boxed beef prices higher. The Choice cutout was up $2.71 to $262.97, and the Select cutout was higher 69 cents to $248.14 on 140 loads.
USDA’s weekly export report for the period of Dec. 3-9 showed beef net sales of 17,100 metric tons (mt), up noticeably from the previous week but down 3 percent from the prior four-week average. Net sales of 5,700 mt for 2022 were primarily for China (1,500 mt), South Korea (1,400 mt), Japan (1,000 mt) and Mexico (900 mt). Exports were 18,500 mt, up 11 percent from the previous week and 6 percent from the prior four-week average. The destinations were primarily South Korea (5,200 mt), Japan (4,400 mt), China (3,000 mt), Canada (1,700 mt) and Taiwan (1,600 mt).
Feeder cattle
Feeder cattle were unable to rally, possibly due to higher corn futures. The January contract was down 85 cents to $162.57, and the March contract was down 15 cents to $164.32. Deferred contracts in May through September 2022 were slightly higher. The CME Feeder Cattle Index was down 69 cents to $161.08.
Corn closed higher, with the March and May contracts up 5 cents a bushel to $5.91 and $5.92, respectively.
Kansas: Winter Livestock in Dodge City sold 4,145 head on Wednesday. Compared to the last auction, yearling and feeder steers and heifers 500-900 lbs. sold steady to $1 higher. Steer and heifer calves 300-500 lbs. sold steady, with a premium paid on weaned calves. Benchmark steers averaging 727 lbs. sold between $156-165.50 and averaged $164.30.
New Mexico: Clovis Livestock in Clovis sold 2,379 head on Wednesday. The previous auction did not have a comparison due to the reporter’s absence. A group of steers averaging 780 lbs. sold between $148-150, averaging $148.33.
Oklahoma: OKC West in El Reno sold 12,614 head on Wednesday. Compared to the last auction, feeder steers traded mostly steady, and feeder heifers sold $8-10 lower after last week’s higher market. Steer and heifer calves under 450 lbs. traded with instances up to as much as $20 lower, 450-600 lbs. sold $1-2 higher and the remainder of the calves were steady. Benchmark steers averaging 726 lbs. sold between $155-169.50 and averaged $164.16.
South Dakota: Hub City Livestock in Aberdeen sold 5,671 head on Wednesday. Compared to the previous auction, the best test on yearling steers 850-900 lbs. sold mostly steady, with other weight classes of yearling steers and heifers not well compared. Steer calves 500-600 lbs. were $3-6 lower, and 601-700 lbs. sold mostly steady. Heifer calves 500-600 lbs. sold $2-5 higher, while 601-650 lbs. were mostly steady. Benchmark steers averaging 777 lbs. sold between $155.50-171, averaging $161.57.
Wyoming: Torrington Livestock in Torrington sold 5,020 head on Wednesday. Compared to the last auction, steer calves traded unevenly steady with a few instances of $2 lower. Heifer calves under 450 lbs. traded mostly steady. Heifer calves over 450 lbs. traded $1-4 lower, except for a few lots of 550 lb. heifers trading $2 higher. Benchmark steers averaging 711 lbs. sold between $154-163 and averaged $160.59. — Charles Wallace, WLJ editor
