Friday markets
Feeder cattle futures saw significant gains despite live cattle futures closing sideways and weaker cash sales.
Live cattle closed mostly sideways, with the December contract unchanged at $182.95 and the February contract up 15 cents to $185.25.
Cash trade was moderate, with 5,563 head sold. Live steers sold for $184-186, and dressed steers sold for $290.
On the formula side, 28,800 head averaging 895 lbs. sold for an average of $297.48.
“Seller confidence eroded as packer patience won out the day,” the Cattle Report wrote. “In the North, live prices declined to $184-185 and live sellers in the South accepted the $185 bids. Dressed sales continued at $290. Volumes improved but were still short of what packers needed. Live prices were $2-3 lower and dressed prices $4-6 lower.”
Today’s slaughter is estimated to be 120,000 head, 4,000 head above a week earlier. Saturday’s slaughter is projected to be 3,000 head, bringing the estimated weekly total to 606,000 head.
Boxed beef prices were lower on 115 loads, with the Choice cutout down 46 cents to $303.34 and the Select cutout down 52 cents to $276.14.
“The value of the dollar has been rising in relation to other world currencies,” the Cattle Report said. “It is currently trading close to $1.06 after trading as low as $1.02 pre-election. The value of the dollar has a direct bearing on the cost of our beef to foreign buyers, and the recent jump has increased the cost of our exported beef and, at the same time, made imported beef cheaper. Beef exports this year remain slightly below last year but have been strong relative to the high price. Beef imports have risen 20% as the value of our ground beef remains the bulwark of beef sales.”
The Export Sales report for the week ending Nov. 7 shows net sales of 14,200 metric tons (mt) for 2024, up 78% from the previous week and 8% from the prior four-week average. Exports were 15,800 mt, up 10% from the previous week and 3% from the prior four-week average. The destinations were primarily to South Korea (4,600 mt), Japan (3,600 mt), China (2,300 mt), Mexico (1,400 mt) and Taiwan (1,200 mt).
Feeder cattle
Feeder cattle futures saw significant gains, with the November contract up $3.47 to $251.10 and the January contract up $4.02 to $247.22. The CME Feeder Cattle Index was up $1.27 to $252.31.
Corn futures were higher after a mostly lower week. The December contract was up 5 cents to $4.24, and the March contract was up 4 cents to $4.35.
Kansas: Winter Livestock in Pratt sold 3,166 head on Thursday. Compared to the last auction, there was no recent comparison on feeder steers and heifers 700-975 lbs., but a higher trend was noted. Steer and heifer calves 400-700 lbs. sold steady to $10 higher, with instances of up to $20 higher on fancy weaned calves. Benchmark steers averaging 768 lbs. sold for $241-250, averaging $244.98.
Montana: Billings Livestock in Billings sold 3,505 head on Thursday. Compared to the last auction, feeder steer calves sold $5-10 higher. Heifer calves under 500 lbs. sold generally steady, and over 500 lbs sold mostly $3-5 higher. Yearling steers and heifers were too lightly tested to develop any market trend. Benchmark steers averaging 731 lbs. sold for $257-262.50, averaging $260.70.
Oklahoma: Apache Livestock in Apache sold 2,366 head on Thursday. Compared to the last auction, feeder steers and feeder heifers were tested too lightly, but a higher undertone was noted. Steer and heifer calves $8-16 higher, with instances of $20 plus higher. Benchmark steers averaging 759 lbs. sold for $245-246.50, averaging $246.04.
Texas: Cattlemen’s Livestock in Dalhart sold 1,679 head on Thursday. Compared to the last auction, steer and heifer calves showed an uptick of $10-18. There were few comparable sales on steer and heifer feeders, but a higher undertone was noted. Benchmark steers averaging 717 lbs. sold for $228-248, averaging $232.64. — Charles Wallace, WLJ contributing editor
