“Light, slow, and narrow” was how Cassie Fish of the Beef Report described the markets last week.
“There may be a couple of more weeks before the holiday, but this week feels as if it has already arrived,” she said Thursday.
Things were relatively slow to develop last week in the negotiated cash fed cattle trade. By Thursday afternoon, only 21,000 head had been confirmed sold for the week at $117-119 (avg. $118.76) live and $188-189 ($188.12) dressed. This was up only slightly from the prior week’s averages.
The near-term futures were sideways last week, with ups and downs throughout the week resulting in minor net gains in the live contracts. By the Thursday settlement, the December live contract stood at $120.43 (+23 cents compared to Friday, Dec. 6) and the February contract stood at $125.10 (+12 cents). The feeder cattle contracts made slightly larger net gains of around $1 with Thursday settlements of $142.55 for January and $143.45 for March.
“The lack of support in the complex continues to spark some underlying weakness in the market, but traders remain confident of holding current trading ranges through the holiday season,” commented DTN’s Rick Kment, adding that the focus in coming weeks will be on beef values.
Last week the cutouts were the most mobile part of the markets, losing a net $8.91 for Choice ($215.65) and $4.74 for Select ($202.56).
The cash feeder cattle sales were generally higher last week, if not always in price, then at least mostly in offering volume. Most of the surveyed auctions sold many times more cattle last week than in the prior week. Prices for medium and large #1 steers weighing 700-800 lbs. were still dependably in the $130s-150s.
Colorado: The Winter Livestock Auction of La Junta sold over 5,300 head of feeders last week, up from 3,850 head the week before. Steer calves under 650 lbs. were up $3-5 with the exception of 4-weights, which were steady. Heavier steer calves were down $2-3, and yearling steers were down $5-8. Heifer calves were up $3-5 except for 6-weights, which were steady to up $2. Yearling heifers were down $3-5. Benchmark steers were all over the board, with prices in the low $130s for unweaned calves or full or fleshy yearlings, while standard yearlings averaged $143.13.
Missouri: Almost 12,000 head of feeder cattle sold last week from the Joplin Regional Stockyards. All feeders were called steady, regardless of age or sex. The auction noted a high percentage of weaned calves and yearling loads. Prices on #1, 7-weight steers ranged from $137-152 with fleshy yearlings or unweaned calves trending in the bottom of the range and standard yearlings at the higher end.
Montana: The Miles City Livestock Commission sold more than double the volume of feeder cattle last week compared to the week before. This meant there were too few comparable sales for a test. Despite this, “firm undertones” were noticed. Two small lots of benchmark steers sold, one of yearlings and one of unweaned calves. Interestingly, the unweaned calves averaged $142.14 while the yearlings averaged $138.
Nebraska: The Huss Livestock Market sold 4,328 head of feeder cattle last week, roughly steady with the prior week. Prices were mixed, however, with steers selling steady to down $3, except for 5-weight weaned calves, which were up $10. Heifers were mostly down $1-7, except for 6-weights selling $1-4 higher. Three lots of #1, 7-weight steers sold; the two large lots of yearlings ranged from $142.50-156, while the 24-head lot of bawling calves averaged $139.02.
Oklahoma: The Oklahoma National Stockyards sold almost double the number of feeder cattle last week at 14,809 head as it did the week before. Despite the large difference in sales volume, steers of all ages were called steady to $3 higher while heifers of all ages were called steady to down $4. Prices on benchmark yearling steers ranged from $137 for some “full” steers to 153.50 for some lightweights.
South Dakota: The Sioux Falls Regional Cattle Auction sold over three times the number of cattle last week as it did the week before at 5,405. Where comparable, feeder steers were steady to down $2, except for 7-weights, which were $5-10 lower. Heifers were steady to up $4, except for 5-weights, which were up $5-8. Prices ranged from $136-152.50 on #1, 7-weight yearling steers.
Wyoming: The sales volume was fairly steady at the Torrington Livestock feeder cattle auction, but prices were mixed. Steer calves sold mostly $5-8 higher except for 6-weights, down $3-4. Heifer calves were called $2-4 lower. Prices on benchmark steers ranged from $141-149.50. — Kerry Halladay, WLJ editor
