Thursday markets
Happy Veterans Day, and thank you to all who served. Markets closed the day mixed.
Live cattle futures closed slightly lower, with the December contract down 12 cents to $131.87 and the February contract lower 42 cents to $136.40.
According to ShayLe Stewart, DTN livestock analyst, live cattle futures are trading above both the 100-day moving average ($131.24) and the 40-day moving average ($129.45).
“Traders are realizing they have all the upward potential they could wish for, but traders are skeptical of getting too bullish as they know the dynamics in the cattle market aren’t for the weak-hearted,” Stewart wrote in the midday comments.
Cash trade was light today, with 5,187 head selling between $131-133, averaging $131.91. Dressed steers sold between $206-207. Negotiated cash trade was at a standstill in the Texas Panhandle and limited on light demand in Nebraska and the western Corn Belt. On the formula side, 17,900 head averaging 894 lbs. sold for $213.72.
Slaughter for the day is projected to be 117,000 head, 5,000 below last week. Due to the federal holiday, actual slaughter numbers will be released tomorrow.
Boxed beef prices were mixed on 133 loads, with the Choice cutout down 38 cents to $285.14 and the Select cutout up 67 cents to $267.29.
USDA’s Economic Research Service released the Meat Price Spreads report, showing retail meat prices continue to climb in October. The Choice prices for October were $7.90 per pound, a record for the third consecutive month in a row and 24.3 percent above last year. According to the CME Daily Livestock Report, lean ground beef, sirloin steak (Choice, boneless) and beef stew (boneless) set record-high prices in October at $6.37, $11.65 and $6.92 per pound, respectively. In October, chuck roast (Choice, boneless) was $7.40 per pound, the second-highest on record behind last month ($7.46). Ground chuck, ground beef (100 percent beef) and all uncooked ground beef were $4.87, $4.72 and $5.24, respectively, in October: the second-highest price only behind records set during the pandemic (June 2020).
Feeder cattle
Feeder cattle closed higher as the corn rally subsided today. The November contract was up 67 cents to $157.32, and the January contract was higher $1.02 to $159.07.
“One of the biggest wild cards for the feeder cattle market moving forward is obviously the price of inputs, but also processing speeds,” Stewart commented. “If packers keep clipping through these fat cattle at a swift pace, then feedlots sit in a fine position to keep the cash market strong, which could, in return, rally feeder cattle prices.”
Corn closed the day mixed, with the December contract up a fraction of a cent at $5.69 and the March contract down a fraction of a cent at $5.78 a bushel.
Kansas: Winter Livestock in Dodge City sold 4,362 head on Wednesday. Compared to the previous auction, feeder steers 400-900 lbs. sold $5-10 higher. Heifers 400-900 lbs. sold $4-8 higher. Benchmark steers averaging 788 lbs. sold between $151-161.35, averaging $160.23.
Nebraska: Bassett Livestock in Bassett sold 6,120 head on Wednesday. Compared to the last auction, steers 550-850 lbs. traded unevenly steady; heifers 550 lbs. and higher sold $2 higher. Benchmark steers averaging 704 lbs. sold between $169.75-170 and averaged $169.87.
New Mexico: Clovis Livestock in Clovis sold 3,614 head on Wednesday. Compared to the last auction, steer calves under 600 lbs. were unevenly steady; feeders over 600 lbs. sold steady to $3 higher. Heifer calves under 600 lbs. were $1 higher; feeders over 600 lbs. sold $1-2 higher. A group of steers averaging 681 lbs. sold between $143-150, averaging $149.49.
Oklahoma: OKC West in El Reno sold 10,869 head on Wednesday. Compared to the previous auction, feeder steers and heifers were steady on moderate demand. Steer and heifer calves were not well tested on the previous auction for a trend, but a much higher undertone was noted. Benchmark steers averaging 768 lbs. sold between $154.75-163, averaging $160.06.
Wyoming: Torrington Livestock in Torrington sold 5,509 head on Wednesday. Compared to the last auction, steer calves traded $3-7 higher. Heifer calves traded $2-6 higher with instances of $8 higher. Benchmark steers averaging 731 lbs. sold between $150-154 and averaged $151.96. — Charles Wallace, WLJ editor
