Thursday markets
Cattle futures closed lower due to technical pressure and traders were waiting for cash trade to develop.
Live cattle futures were lower, with the December contract down $1.40 to $186.97 and the February contract down $2 to $186.32.
Cash trade started to develop, with 8,296 head sold. Live steers sold for $189-190, and dressed steers sold between $295-297.
On the formula side, 38,600 head averaging 917 lbs. sold for an average of $303.08.
“The live cattle complex is venturing lower as traders are growing impatient while waiting for the cash cattle market to trade,” ShayLe Stewart, DTN livestock analyst, wrote in the midday comments. “Bids are currently being offered all throughout the countryside, with the Southern plains being offered $190 and dressed bids being offered in Nebraska at $297—but still no cattle have traded as feedlots want more money. As I mentioned earlier this week, I don’t foresee feedlot managers letting cattle trade cheaper this week when they’re current enough with their showlists to simply roll them over if they don’t see the market prices in which they desire. Feedlot managers know that they hold the lion’s share of the market’s leverage and if they’re to advance the market, now is the time to do so.”
Today’s slaughter is estimated to be 118,000 head, bringing the weekly total to a projected 485,000 head.
Actual slaughter for the week ending Nov. 23 was 635,308 head. The average steer dressed weight was 952 lbs., 8 lbs. below the prior week.
Boxed beef prices were lower on 112 loads, with the Choice cutout down 49 cents to $307.84 and the Select cutout down 60 cents to $277.10.
Feeder cattle
Feeder cattle futures closed again lower, with the January contract down $2.02 to $254.92 and the March contract down $2.10 to $253.60. The CME Feeder Cattle Index was up 4 cents to $259.86.
“Yes, the feeder cattle complex has been leading the cattle market’s surge as of late, but at this point in time, the feeder cattle complex seems to have grown weary of trading any higher and needs more market reassurance before they can successfully pressure resistance levels again,” Stewart wrote.
Corn futures were higher, with the December contract up 4 cents to $4.26 and the March contract up 5 cents to $4.35.
Kansas: Winter Livestock in Dodge City sold 5,233 head on Wednesday. Compared to the last auction two weeks ago, feeder steers over 850 lbs. sold steady to $5 higher, and under 600 lbs. sold $20 higher. Heifers over 800 lbs. sold steady to $5 higher. There were instances of reputation calves under 600 lbs. trading $40-50 higher. Benchmark steers averaging 715 lbs. sold for $259-280.25, averaging $271.37.
Nebraska: Bassett Livestock in Bassett sold 3,450 head on Wednesday. There was not an accurate comparison due to a lack of a recent auction. A group of steers averaging 787 lbs. sold for $289.
New Mexico: Clovis Livestock in Clovis sold 2,254 head on Wednesday. Compared to the last sale two weeks ago, steer calves and yearlings sold $14-19 higher, except for 800-850 lbs. were $19 lower. Heifer calves sold $11-16 higher, except for 450-500 lbs. traded $5 lower. Heifer yearlings were $3-11 higher and 750-800 lbs. were steady. Benchmark steers averaging 768 lbs. sold for $240-253, averaging $247.63.
Oklahoma: OKC West in El Reno sold 10,270 head on Wednesday. Compared to the last auction two weeks ago, feeder steers and heifers traded $4-8 higher. Benchmark steers averaging 769 lbs. sold for $255-270.50, averaging $264.10. — Charles Wallace, WLJ contributing editor
