Thursday markets
The cattle complex closed mixed on a disappointing export report, the World Agricultural Supply and Demand Estimates (WASDE) report not building momentum and lower cash trade.
Live cattle futures closed lower, with the December contract down 82 cents to $136.72 and the February contract down 87 cents to $137.80.
Cash trade was active but slightly lower, with 31,800 head selling between $137-141, averaging $139.24. Dressed steers sold between $218-221 and averaged $219.66. On the formula side, 32,800 head averaging 909 lbs. sold for $229.84.
“With fairly active negotiated fed cattle trading this morning in the South at $140, last week’s $141-142 trades are the top for 2021 for now, unless a last week of the year push occurs,” Cassie Fish, market analyst for The Beef, wrote. “It’s still a good ticket, the second-highest cash cattle price for December in history behind 2014, as leverage has finally swung back to the cattle feeder for the first time since 2019.”
The special Thursday Fed Cattle Exchange Auction sold 278 of the 1,708 head listed. Opening prices ranged from $130-139. High bids ranged from $130.25-140.25. One pen went for $140, and another sold at $140.25. The other listings were unsold, between $141-142 asks and $139.75 bids.
Slaughter for today is projected to be 122,000, down a thousand from last week. The actual slaughter for the week ending Nov. 27 was 567,528 head. Steer dressed weight was 926 lbs., up 4 lbs. from last week.
Boxed beef prices were mixed on 204 loads, with the Choice cutout up 44 cents to $264.55 and the Select cutout down $1.41 to $251.68.
“Boxed beef values are falling hard, the Choice back down to the summer low yesterday afternoon,” Fish wrote. “Wholesale prices won’t bottom until just after the Christmas holiday and a drop to $250 on the Choice is not out of the question.”
USDA released the WASDE report forecasting beef production slightly higher from November at 27.96 billion lbs. The beef imports forecast was raised 55 million lbs. from last month on increased demand for beef.
This corresponds with data from the USDA Economic Research Service (ERS), which released the October carcass weight equivalent trade data yesterday, showing imports rose 17 percent in October to 293.1 million lbs. October beef exports fell 2.5 percent from last month but were 8.9 percent above last year to 281.5 million lbs.
USDA’s weekly export report for the period of Nov. 26 to Dec. 2 showed beef net sales were 4,200 metric tons (mt), down 80 percent from the previous week and 81 percent from the prior four-week average—a marketing-year low. Net sales for 2022 were 10,400 mt, primarily for South Korea (8,200 mt), Taiwan (500 mt), Mexico (400 mt), Japan (300 mt) and China (300 mt). Exports were 16,700 mt, up 1 percent from the previous week, but down 5 percent from the prior four-week average. The destinations were primarily South Korea (4,400 mt), Japan (4,000 mt), China (3,300 mt), Taiwan (1,600 mt) and Mexico (1,200 mt).
Feeder cattle
Feeder cattle closed mixed, with the January contract up 67 cents to $164.07 and the March contract down 80 cents to $165.07. The CME Feeder Cattle Index was up 20 cents to $161.16.
“With essentially no support from the live cattle market, the feeder cattle futures are left to scale lower,” ShayLe Stewart, DTN livestock analyst, wrote in the midday comments. “Thankfully, demand throughout the countryside hasn’t weakened; but the futures aren’t responding to the positive fundamental support which could be because the corn market is mixed.”
Corn contracts closed higher, with the December contract up 3 cents to $5.88 and the March contract up 4 cents to $5.91 a bushel.
Kansas: Winter Livestock in Dodge City sold 5,128 head on Wednesday. Compared to the last auction, yearling steers 600-975 lbs. sold steady to $4 higher. Steer calves 400-600 lbs. sold $4-7 higher. Heifers 400-900 lbs. sold $4-10 higher. Benchmark steers averaging 727 lbs. sold between $161.75-166.50, averaging $164.13.
Nebraska: Bassett Livestock in Bassett sold 3,735 head on Wednesday. Compared to the previous auction, steers 500-650 lbs. sold steady to $6 higher, and there were a limited number of comparable offerings for heifers, with 500 lb. offerings trading $10 higher. Benchmark steers averaging 740 lbs. sold between $170.25-181, averaging $177.31.
Oklahoma: OKC West in El Reno sold 13,769 head on Wednesday. Compared to the last auction, feeder steers under 800 lbs. sold steady to weak, and over 800 lbs. sold $2-4 higher. Feeder heifers traded $3-6 higher. Benchmark steers averaging 764 lbs. sold between $161.50-171.75 and averaged $167.28.
South Dakota: Hub City Livestock in Aberdeen sold 4,245 head on Wednesday. Compared to the previous auction, steer calves 500-550 lbs. sold $3-4 higher, and 551-700 lbs. were mostly steady. Heifer calves 500-600 lbs. sold mostly steady, while 601-650 lbs. traded $3-4 higher. Benchmark steers averaging 720 lbs. sold between $169-172.50 and averaged $170.40. — Charles Wallace, WLJ editor
