Monday markets
Cattle markets were sharply higher today, continuing their upward trend from last week.
“News that a COVID-19 vaccine that has proven to be 90 percent effective sent equities sharply higher as hopes of the economy returning to normal in 2021 soared. Anticipation of dining out fully returning in 2021 is the best kind of news for anyone in the beef industry,” remarked Cassie Fish, market analyst, in The Beef.
Cash trade was at a standstill in all feeding regions, with only 106 head sold. Last week, live cattle traded at $107 in the Southern Plains and Nebraska, and dressed purchases traded at $167 in Nebraska. A total of 27,700 head were sold today on formula, averaging 888 lbs. and $168.55.
“Following last week’s stout cash cattle trade, showlists are lighter in all regions and feedlots are expected to price cattle higher again,” reported DTN Livestock Analyst ShayLe Stewart in her midday livestock comments.
Last week, cash cattle sales totaled 124,710 head, with 91,045 committed for delivery in the next two weeks, and the remaining 33,665 head for delivery in the following 15 to 30 days.
Live cattle futures contracts jumped from last Friday: The December contract was up $3.18 to $111.83 and the February contract was up $2.93 to $115.08.
Last week, 647,000 head were slaughtered—9,000 head more than the week prior, but 10,000 head below last year. Monday’s slaughter is estimated at 117,000 head, a couple thousand head below last week, but several thousand head above last year.
Boxed beef prices were several dollars higher on 122 loads, with the Choice cutout up $3.07 to $217.39 and the Select cutout up $3.88 to $202.37.
Feeder cattle
Feeder cattle futures were sharply higher, with the November contract up $3.93 to $141.62 and the January contract up $4.80 to $140.73. The December corn contract was up slightly, but only by less than a penny to $4.07. The latest CME Feeder Cattle Index was released Nov. 6 and was down $1.28 to $136.63.
“With the expanded limits allowing the market to scale higher in a faster manner, the market is pushing for all that it can take as traders are willing and ready to invest in the market.” Stewart remarked. “The hardship endured earlier this year pinched producers’ profitability immensely, but there’s a lot of upside potential for the feeder cattle market and live cattle market heading forward.”
Joplin Regional Stockyards in Carthage, MO, sold 5,500 head today. Compared to last week, steer calves and yearling steers sold steady to $5 higher; and sharply higher on 400-weight steer calves, but there were few comparisons to last week. Heifer calves and yearling heifers sold steady. Demand was moderate to good and supply moderate. Benchmark steers averaging 774 lbs. sold between $136-144.50, and averaged $141.74.
Oklahoma National Stockyards in Oklahoma City, OK, sold 11,500 head. Compared to last week’s light test: Feeder steers sold $4-7 higher, and feeder heifers were not well tested in early rounds. Steer calves opened $4-8 higher. Heifer calves opened mostly firm. Demand was very good for calves. Steers averaging 677 lbs. sold between $138-145, and averaged $143.02. — Anna Miller, WLJ editor
