Thursday markets
The cattle complex closed mixed on an active day of higher negotiated cash trade.
Live cattle closed higher, with the December contract up 92 cents to $133.15 and the February contract up 85 cents to $137.25.
“The excitement that’s roaring throughout the countryside as feedlots successfully move the market higher again this week has sparked the interest of traders and led the live cattle contracts to rally as well,” ShayLe Stewart, DTN livestock analyst, wrote in the midday comments.
After a week of light trading, cash trade picked up today, with 57,608 head selling between $130-134, averaging $133.14. Dressed steers sold between $208-211, averaging $209.91. Compared to last week, live trade in the Southern Plains traded $1 higher at $133. In Nebraska, live trade was $133-134, $1-2 higher, and in the western Corn Belt, live trade was $1-3 higher at $133. On the formula side, 29,000 head averaging 894 lbs. sold for $214.38.
The Special Fed Cattle Exchange Auction held Thursday listed a total of 1,697 head, all of which were from Texas. Of these, 749 (606 heifers, 143 steers) sold at $133-133.50, 474 were scratched from the auction and 474 were unsold, as they did not meet the reserve prices.
Slaughter for the day is projected to be 122,000 head, 5,000 above last week. The actual slaughter for the week ending Nov. 6 was 652,051 head. Steer carcass weights were 919 lbs.
Boxed beef prices were lower on 193 loads, with the Choice cutout down $2.31 to $276.16 and the Select cutout lower 90 cents to $263.16.
USDA’s Weekly Export report for the week of Nov. 5-11 showed net sales of 25,500 metric tons (mt), up 23 percent from the previous week and up 58 percent from the prior four-week average. Exports were 18,200 mt, up 8 percent from the previous week and the prior four-week average. The destinations were primarily to South Korea (5,400 mt), Japan (4,100 mt), China (3,200 mt), Mexico (1,500 mt) and Taiwan (1,100 mt).
Feeder cattle
Feeder cattle closed mixed, with the November contract down 15 cents to $155.92 and the January contract up $2.45 to $161.37. The CME Feeder Cattle Index was down 2 cents to $155.46.
“With the cash cattle market heating up and corn prices bowing lower, the feeder cattle market seems eager to take full advantage of Thursday’s trade and shake higher,” Stewart wrote. “Thankfully, the markets not only found support technically, but fundamentally, the market sits in a healthy position for supporting higher prices as buyers, though cautious of the corn market’s rally, are buying calves vigorously and are still willing to pick up the right type of feeder cattle.”
Corn contracts were lower, with both the December and March contracts down 2 cents a bushel to $5.73 and $5.79, respectively.
Kansas: Winter Livestock in Dodge City sold 2,961 head on Wednesday. Compared to the last auction, feeder steers 600-900 lbs. sold $3-5 lower. Steers 600-650 lbs. were steady. Steer calves 400-600 lbs. sold $5-6 lower. Feeder heifers 400-900 lbs. sold steady to $4 lower. Benchmark steers averaging 787 lbs. sold for $168.50.
Nebraska: Bassett Livestock in Bassett sold 1,935 head on Wednesday. Compared to the last auction, there were a limited number of comparable offerings from last week. Steers 450-650 lbs. traded $2-11 lower, and 500 lb. heifers traded $4 lower. Benchmark steers averaging 725 lbs. sold for $168.
New Mexico: Clovis Livestock in Clovis sold 2,800 head on Wednesday. Compared to the previous auction, steer calves sold $2-4 lower. Feeders over 600 lbs. were steady to $1 lower. Heifer calves were uneven to mostly $1 lower. A few 450-550 lbs. sold $4 higher, and feeders over 600 lbs. were $3-4 higher. A group of steers averaging 723 lbs. sold between $135-142, averaging $139.83.
Oklahoma: OKC West in El Reno sold 7,922 head on Wednesday. Compared to the last auction, feeder steers traded $2-4 higher. Feeder heifers sold $3-6 higher. Benchmark steers averaging 784 lbs. sold between $157-164, averaging $162.05.
South Dakota: Hub City Livestock in Aberdeen sold 6,992 head on Wednesday. Compared to the previous auction, steer calves 450-500 lbs. sold $2-3 higher; 501-550 and 601-650 lbs. were $2-4 lower; and 551-600 lbs. were mostly steady. Heifer calves 450-500 lbs. sold $5-9 higher, while 501-650 lbs. were mostly steady. Yearlings are not well compared for an accurate trend. Benchmark steers averaging 760 lbs. sold between $152.25-162, averaging $156.47. — Charles Wallace, WLJ editor
