Thursday markets
Cattle futures closed mostly higher, with feeders as the leaders, closing up over $3.
“Since last Friday, January feeder cattle futures have rallied an astonishing $21,” wrote Cassie Fish, market analyst, in The Beef. “Futures are back above the 10-day moving average and last week’s washout is quickly fading in memory.”
Live cattle futures closed mixed, with the December contract down 7 cents to $218.90 and the February contract up 25 cents to $222.95.
Cash trade has yet to develop, with 787 head sold. Live steers sold for $210, and dressed steers sold for $335. On the formula side, 18,400 head averaging 948 lbs. Sold for an average of $348.07.
“Most of today’s focus is on the slow-to-develop negotiated fed cattle trade,” Stewart wrote. “ The beef packers’ bids have been clustered close to the lows made late last week, and most are passing. The North bids are $210/cwt and $330/cwt dressed, and the South $215/cwt. Packer cattle inventory at the beginning of the week was good, but inventory still must be replenished, especially given this week’s slaughter is estimated at 540k to 550k head, up from last week’s 534k.
Today’s slaughter is estimated to be 110,000 head, the same as last week.”
Actual slaughter for the week ending Oct. 31 was 546,558 head. The average steer dressed weight was 995 lbs., up 4 lbs. from the prior week.
Boxed beef prices were mixed on 160 loads, with the Choice cutout down $2.67 to $357.59 and the Select cutout up $1.24 to $348.71.
Feeder cattle
Feeder cattle futures closed triple digits higher, with the November contract up $3.05 to $335.67 and the January contract $3.87 higher to $331.67.
The CME Feeder Cattle Index was up 19 cents to $330.61.
Corn futures closed lower, with the December and March contracts down 5 cents to $4.42 and $4.54, respectively.
Colorado: La Junta Livestock in La Junta sold 2,247 head on Wednesday. Compared to the previous auction, feeder steers under 450 lbs. sold sharply lower, and 450-700 lbs. sold mostly $4-7 higher, with some instances of sharply higher prices. Steers over 700 lbs. sold sharply lower on a light test. Feeder heifers under 600 lbs. sold sharply higher and over 600 lbs. sold $4-6 lower, with instances of sharply lower prices. A group of benchmark steers averaging 725 lbs. sold for $332.
Kansas: Winter Livestock in Dodge City sold 3,239 head on Wednesday. Compared to the previous auction, steers 750 lbs. and over sold steady to $5 lower. Heifers over 700 lbs. sold $8 lower. Benchmark steers averaging 743 lbs. sold for $343-352, averaging $347.70.
Nebraska: Bassett Livestock in Bassett sold 5,790 head on Wednesday. Compared to the previous auction, steers 450-550 lbs. traded $14-20 higher, with no comparable heifer offerings. A high demand for black and black-and-white-face replacement-quality heifers should be noted. Benchmark steers averaging 721 lbs. sold for $379-395.75, averaging $389.12.
Oklahoma: OKC West in El Reno sold 4,834 head on Wednesday. Compared to the last auction, feeder steers over 800 lbs. sold for $10-15 higher, and under 800 lbs. traded $5-10 higher. Feeder heifers sold unevenly steady in a light test. Benchmark steers averaging 725 lbs. sold for $335-347.50, averaging $340.93. — Charles Wallace, WLJ contributing editor
