Thursday markets
Live and feeder cattle futures pulled back today as traders wait and see how cash markets move.
Live cattle futures closed the day lower, with the December contract down $1.02 to $130.62 and the February contract down 80 cents to $135.85.
Cash trade was mostly inactive on light demand in all major feeding regions with 3,777 head selling between $127-128. Dressed steers sold for $202. On the formula side, 31,400 head averaging 895 lbs. sold for $205.20.
“Feedlots look at the strength that’s helping pull boxed beef prices higher, they see how aggressive processing speeds have been this week and they know that packers are short bought—all of which indicates they should be able to move the market higher again this week,” ShayLe Stewart, DTN livestock analyst, wrote in the midday comments. “Packers are trying to resist paying more money because as the market gets closer to breaking the resistance at $130 in the cash market, not only does the market stand to regain leverage, but feedlots will realize they can indeed demand more.”
Boxed beef prices were higher on 147 loads, with the Choice cutout up $1.73 to $290.22 and the Select cutout up 50 cents to $268.22.
Slaughter for the day is projected to be 122,000 head, the same as last week.
The actual slaughter for the week ending Oct. 23 was 661,974 head. Steer carcass weights were 918 lbs., down 4 lbs. from the previous week. The National Weekly Fed Cattle Comprehensive report showed quality grading was up 0.6 percent to 79.8 percent, and dressed weights were up 1.3 lbs. to 887 lbs.
Beef net sales for the week of Oct. 22-28 were 16,700 metric tons (mt), down 13 percent from the previous week but up 15 percent from the prior four-week average. Beef exports were 16,800 mt, unchanged from the previous week but up 3 percent from the prior four-week average. The destinations were primarily South Korea (4,600 mt), Japan (4,500 mt), China (3,100 mt), Taiwan (1,100 mt) and Mexico (1,100 mt).
Feeder cattle
Feeder cattle futures followed live cattle futures, closing lower. The November contract was down $1.15 to $158.02, and the January contract was down $1.05 to $158.17. The CME Feeder Cattle Index was higher by 16 cents to $155.81.
Corn contracts closed lower, with both the December and March contracts down 4 cents a bushel to $5.59 and $5.67, respectively.
Kansas: Winter Livestock in Dodge City sold 2,575 head on Wednesday. Compared to the last auction, feeder steers 600-900 lbs. sold $4-5 lower, with instances of $7-8 lower. Steer calves 400-600 lbs. sold $4-5 higher. Feeder heifers 600-900 lbs. sold steady to $2 higher. Heifers 400-600 lbs. sold unevenly steady. Benchmark steers averaging 764 lbs. sold between $149-152.50, averaging $151.54.
New Mexico: Clovis Livestock in Clovis sold 2,981 head on Wednesday. Compared to the previous auction, steer calves under 600 lbs. were steady to $3 lower. Feeder steers over 600 lbs. had instances of $5 higher, though quality was more attractive. Heifer calves under 600 lbs. sold unevenly steady, with a few 450-500 lb. calves selling $2 higher. There was no accurate comparison on feeders or calves over 600 lbs. A group of steers averaging 776 lbs. sold for $131.25.
Oklahoma: OKC West in El Reno sold 5,823 head on Wednesday. Compared to the last auction, feeder steers traded mostly $2-5 lower from last week’s sharply higher market. Feeder heifers were steady. Benchmark steers averaging 781 lbs. sold between $154.50-162.50, averaging $157.97.
South Dakota:Hub City Livestock in Aberdeen sold 5,675 head on Wednesday. Compared to the previous auction, yearling steers 900-950 lbs. sold mostly steady, while other weight classes of yearlings and yearling heifers were not well compared. Benchmark steers averaging 758 lbs. sold between $150-159, averaging $156.08. —Charles Wallace,WLJ editor
