Tuesday markets
Livestock contracts were slightly lower as the market was looking for some direction following yesterday’s losses. The Commitment of Traders report as of Oct. 12 showed funds increased their net long live cattle position and decreased their net short feeder cattle position.
Live cattle futures closed the day lower, with the October contract down 45 cents to $125 and the December contract down 40 cents to $130.02.
Cash trade was light, with 3,908 head selling between $123-125, averaging $123.77. Dressed steers sold for $196. Negotiated cash trading has been mostly inactive on light demand in the Texas Panhandle and Nebraska. In the western Corn Belt, negotiated cash trading has been limited on light demand. On the formula side, 16,000 head averaging 857 lbs. sold for $203.03.
The national weekly direct beef type price distribution for the week of Oct. 11 to Oct. 18 was the following on a live basis:
• Negotiated purchases: $123.84.
• Formula net purchases: $125.98.
• Forward contract net purchases: $128.45.
• Negotiated grid net purchases: $127.16.
On a dressed basis:
• Negotiated purchases: $195.64.
• Formula net purchases: $200.39.
• Forward contract net purchases: $197.86.
• Negotiated grid net purchases: $199.37.
Slaughter for the day is projected to be 121,000 head, 1,000 below last week.
“The slaughter volume this past week fell from 657,000 head to 646,000 head,” The Cattle Report wrote. “Friday was a light day, with a couple of plants dark for cooler cleaning. The daily and weekly slaughter volumes will be the most closely watched data in the beef trade. Holiday demand will be increasing in the coming weeks, and the ability of the beef plants to respond will be key to satisfying the robust demand for beef.”
Boxed beef prices were moderately higher on 147 loads, with the Choice cutout up 79 cents to $280.88 and the Select cutout up $1.72 to $261.53.
USDA’s Economic Research Service released the Livestock, Dairy and Poultry Outlook for October, which fractionally raised forecasted commercial beef production for 2021 from last month to 27.832 billion lbs. on robust cow slaughter and heavier carcass weights. Fed and feeder steer prices were lowered in the fourth quarter of 2021 by $4 to $127 per cwt. August’s beef imports totaled 332 million lbs., down 5.4 percent from a year ago. August’s beef exports set a new high of 325 million lbs., up 21 percent from the previous year.
Feeder cattle
Feeder cattle were slightly lower, with the October contract down 65 cents to $155.10 and the November contract lower 50 cents to $158.85. The CME Feeder Cattle Index was higher 75 cents to $154.10.
Corn gave up some of the gains earlier in the day. The December contract was down 2 cents to $5.30, and the March contract was down a cent to $5.39 a bushel.
Iowa: Russell Livestock in Russell sold 2,802 head on Monday. Compared to the previous auction, steers over 750 lbs. sold mostly $6 higher to as much as $1 higher. Heifers under 650 lbs. were $6 higher, while the heavier heifers were sharply higher with limited comparable numbers. Benchmark steers averaging 728 lbs. sold between $157.50-169, averaging $163.39.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 4,890 head on Monday. Compared to the previous auction two weeks ago, feeder steers and heifers sold unevenly steady. A much higher undertone was evident on the heavier weights of both steers and heifers. Benchmark steers averaging 775 lbs. sold between $153.25-166.75, averaging $161.58.
Nebraska: Tri-State Livestock in McCook sold 1,465 head on Monday. Compared to last week, steers and heifers were steady to $6 lower on moderate to good demand. A group of steers averaging 615 lbs. sold for $174.50.
Crop progress
The rain slowed harvest progress somewhat, with USDA’s National Agricultural Statistics Service reporting 52 percent of corn in the bin—11 percent above the five-year average. Texas reported the most corn harvested at 90 percent, followed by Kansas at 75 percent. Iowa and Nebraska are above 40 percent finished and well above the five-year average. Soybean harvest progressed 11 percentage points last week to reach 60 percent complete as of Sunday, Oct. 17. Sorghum (milo) harvested was 5 percent, 9 percentage points ahead of average.
Although there was some improvement this week, Montana, Washington, Wyoming, California and Oregon continue to remain at the top of the list of the driest states, with subsoil and topsoil moisture generally above 80 percent short to very short. Pasture and range conditions will be published on Thursday with the Drought Monitor. — Charles Wallace, WLJ editor
