Tuesday markets
Livestock futures closed the day mixed as the market kept an eye out on the fundamental side of the market’s support or resistance.
Live cattle futures were down slightly, with the December contract down 5 cents to $131.72 and the February contract down 22 cents to $136.10.
Cash trade was light, with 1,117 head selling between $130-132, averaging $131.01. Dressed steers sold for $207. Negotiated cash trading has been mostly inactive on very light demand in the Southern Plains, Nebraska and the western Corn Belt: not enough trades in any region for a market trend. On the formula side, 21,000 head averaging 862 lbs. sold for $213.14.
“To start the week, there has been some very light cash trade at steady money, as expected on the heels of last week’s big, negotiated volume,” Cassie Fish, market analyst for The Beef, wrote. “Cash prices this week will be steady to higher as the expected 660K to 665K head weekly slaughter this week and tighter overall market-ready fed cattle supply support active cash trade and packer competition.”
The special Fed Cattle Exchange Auction on Tuesday listed a total of 2,261 head, of which 607 sold (186 heifers, 421 steers) with a weighted average sales price of $132.50 for heifers and $132.05 for steers. None were scratched from the auction, and 1,654 head were listed as unsold, as they did not meet the reserve prices, ranging from $132-133. Opening prices ranged from $130-131, and high bids ranged from $131-132.50. The state-by-state breakdown was: Texas had 1,840 total head listed, with 186 head sold at $132.50, and 1,654 head went unsold; Kansas had 421 total head, with all 421 head sold at $132-132.25.
The national weekly direct beef type price distribution for the week of Nov. 8 to Nov. 15 was the following on a live basis:
• Negotiated purchases: $131.51.
• Formula net purchases: $130.41.
• Forward contract net purchases: $130.37.
• Negotiated grid net purchases: $128.89.
On a dressed basis:
• Negotiated purchases: $206.79.
• Formula net purchases: $206.92.
• Forward contract net purchases: $203.43.
• Negotiated grid net purchases: $202.71.
Slaughter for the day is projected to be 122,000 head, the same as last week.
“Slaughter this week is expected to be one of the largest of this year. The slaughter volume this past week was 655,000—5,000 more than the previous week and 2,000 less than the prior year,” the Cattle Report wrote. “The cash market has broken out of the trading range that has characterized much of this year. Beef demand is healthy and plant processing volumes remain the wildcard with some transportation bottlenecks remaining a challenge for delivery of meats.”
Boxed beef prices were lower on 162 loads, with the Choice cutout down $1.07 to $282.13 and the Select cutout down 69 cents to $266.59.
Feeder cattle
Feeder cattle closed the day mixed, with the November contract down 27 cents to $155.65 and the January contract up 80 cents to $159.27. The CME Feeder Cattle Index was up 37 cents to $155.43.
“There’s been plenty of buying seen lately on calves as buyers have more options with them. But with how volatile the corn market has been, buyers have been skeptical about plunging into the feeder cattle market as most of them have to go straight onto feed,” ShayLe Stewart, DTN livestock analyst, wrote in the midday comments.
Corn closed the day lower, with the December contract down 5 cents to $5.71 and the March contract down 6 cents to $5.77 a bushel.
Nebraska: Tri-State Livestock in McCook sold 1,280 head on Monday. Compared to the previous auction, steers were $4-8 higher. There were not enough heifers to show for comparison. Demand was good. A group of steers averaging 660 lbs. sold between $150.50-155, averaging $153.80.
New Mexico: Roswell Livestock in Roswell sold 2,276 head on Monday. Compared to the last auction, steer and heifer calves under 600 lbs. were unevenly steady, steer calves over 600 lbs. sold $3 lower and feeders were steady. Heifer calves over 600 lbs. and feeders were steady to $1 higher. A group of steers averaging 775 lbs. sold between $129-135 and averaged $134.47.
South Dakota: Sioux Falls Regional Livestock in Worthing sold 3,504 head on Monday. Compared to the previous auction, feeder steers 550 lbs. and under were $3-5 lower, 550-600 lbs. sold $4-5 higher, 700-900 lbs. were steady to $3 higher and over 1,000 lbs. sold $3-4 higher. Feeder heifers 450-650 lbs. were steady to $3 higher, 650-700 lbs. sold $7-8 lower and 750-950 lbs. were steady to $2 higher. Benchmark steers averaging 772 lbs. sold between $157.75-162, averaging $159.49. — Charles Wallace, WLJ editor
