Thursday markets
It was quiet for the cattle complex as futures closed mostly sideways. The news of note was that boxed beef prices were $3-6 lower.
Live cattle futures were higher, with the December contract up 42 cents to $185.82 and the February contract up 70 cents to $187.42.
“It is supportive from a technical sense to see the spot December live cattle contract trading above the market’s 40-day moving average, as this possibly means that Tuesday’s bottom will serve as a short-term support plane for the complex,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments.
Cash trade was light, with 2,079 head sold. Live steers sold for $186-188, and dressed steers for $294.
On the formula side, 38,800 head averaging 939 lbs. sold for an average of $303.68.
“Things are just as quiet in the country as the negotiated fed cattle trade has yet to occur even though it’s Thursday at noon,” Cassie Fish, market analyst, wrote for The Beef. “Packers own a lot of cattle thanks to four consecutive weeks of sizeable buys. And given that and the sloppy cutout, packers are not eager to worsen margins by paying steady, let alone higher for this week’s fed cattle buy.”
Today’s slaughter is estimated to be 125,000 head, 4,000 head above a week earlier.
Actual slaughter for the week ending Oct. 26 was 625,186 head. The average steer dressed weight was 957 lbs., down 3 lbs. from the prior week.
Boxed beef prices were substantially lower on 179 loads, with the Choice cutout down $6.13 to $309.46 and the Select cutout down $3.48 to $279.72.
Feeder cattle
Feeder cattle futures were mixed, with the November contract down 5 cents to $247.65 and the January contract up 30 cents to $244.32. The CME Feeder Cattle Index was down 80 cents down to $249.92.
“It is worth noting that the spot January contract is continuing to hold its position above the market’s 100-day moving average, which is significant from a technical sense,” Stewart wrote.
Corn futures were slightly higher, with the December and March contracts up a penny to $4.27 and $4.40, respectively.
Kansas: Winter Livestock in Dodge City sold 1,051 head on Wednesday. Compared to the last auction, feeder steers under 600 lbs. sold $10 higher, while steers over 900 lbs. were steady to $3 higher. Heifers under 700 lbs. sold $5 higher and there were not enough sales of heifers over 700 lbs. for an accurate comparison. Benchmark steers averaging 724 lbs. sold for $246-260, averaging $253.93.
Nebraska: Huss Livestock in Kearney sold 1,453 head on Wednesday. Compared to the last auction, steer calves 400-600 lbs. sold steady to $5 higher and steer calves 600-750 lbs. sold steady to $8 higher. Heifer calves 400-600 lbs. sold steady and heifer calves over 600 lbs. sold steady to $5 lower. A group of unweaned steers averaging 773 lbs. sold for $248.
New Mexico: Clovis Livestock in Clovis sold 1,395 head on Wednesday. Compared to the last auction, steer calves sold steady to $10 higher and steer yearlings were steady to $9 higher. Heifer calves sold $2-10 higher, with the exception of 400-450 lbs. were $4 lower. Feeder heifers sold $2 lower. Benchmark steers averaging 790 lbs. sold for $214-220.50, averaging $220.17.
South Dakota: Hub City Livestock in Aberdeen sold 4,208 head on Wednesday. Compared to the last auction, steer calves 500-649 lbs. sold $2-4 lower, yearling steers 900-999 lbs. were steady to $3 higher. Heifer calves 450-499 lbs. and 550-599 lbs. sold unevenly steady, yearling heifers were not well compared. Benchmark steers averaging 713 lbs. sold for $270-277.25, averaging $275.93. — Charles Wallace, WLJ contributing editor
