Ahead of the holiday, markets traded higher. Futures made several-dollar gains, and instances of $137 bids were found on the cash cattle market.
Through Tuesday, live cattle futures closed several dollars higher. The December contract gained $2.25 to close at $135.40, and the February contract gained $2.17 to close at $139.42.
Cash trade through Tuesday afternoon totaled around 12,000 head, with live cattle selling between $135-137. Dressed steers sold from $212-215.
“Demand is solid and packers need to maintain brisk slaughter schedules. Packers did not throw out any bids yet this week, and probably will not either,” wrote Robin Schmahl, DTN contributing analyst, in his Tuesday afternoon livestock comments. “The holiday-shortened week may have them stepping up to match the offers in order to accomplish business.”
Cash trade from Nov. 15-19 totaled 116,750 head, nearly reaching the 180,000 head of a week earlier, which has been the high of 2021.
The national weekly direct beef type price distribution for the week of Nov. 15 to Nov. 22 was the following on a live basis:
• Negotiated purchases: $133.24.
• Formula net purchases: $133.40.
• Forward contract net purchases: $130.69.
• Negotiated grid net purchases: $132.28.
On a dressed basis:
• Negotiated purchases: $209.63.
• Formula net purchases: $211.13.
• Forward contract net purchases: $201.59.
• Negotiated grid net purchases: $206.50.
Slaughter through Tuesday afternoon totaled 122,000 head, bringing the week’s total to 244,000 head, just a thousand head higher than a week earlier. Slaughter through Nov. 18 is projected to reach 677,000 head. Total slaughter for the second week of November was not released due to the Thanksgiving holiday.
Boxed beef prices were mixed Tuesday afternoon, with the Choice cutout up $2.48 to $278.64 and the Select cutout down 49 cents to $262.67. The Choice/Select spread widened several dollars to $15.97.
The latest Cattle on Feed report was released Nov. 19. Cattle and calves on feed were slightly down from last year. Placements were 2 percent higher, and marketings were 5 percent lower. Other disappearances totaled 59,000 head, 6 percent below 2020.
Feeder cattle
Feeder cattle futures found their momentum, even amid increasing corn prices, and gained several dollars over the week. The January contract closed Tuesday at $164.37, $3 higher, and the March contract closed at $165.67, $2.12 higher. The CME Feeder Cattle Index gained almost $2 over the week to close at $157.43.
Corn futures saw some moderate gains over the week. The December contract increased 7 cents to $5.80, and the March contract gained 9 cents to close at $5.88.
“One may feel skeptical about the rally that’s igniting the feeder cattle complex, as some may worry it’s just a holiday fluke and the market really isn’t that robust,” ShayLe Stewart, DTN livestock analyst, wrote in her Tuesday midday comments.
“Technically speaking, the market has all the upward potential it could ever dream of as resistance is far out and traders seem interested. And, fundamentally, with the mass liquidation that’s happened throughout the western U.S., feedlots and packers both know supplies of calves are going to be harder to come by in the years ahead.”
Missouri: Joplin Regional Stockyards in Carthage sold 12,000 head Monday. Compared to the sale a week earlier, feeder steers and heifers traded $2-5 higher. Benchmark steers averaging 776 lbs. sold between $156.25-171 and averaged $161.86.
Nebraska: Tri-State Livestock in McCook sold 1,175 head on Monday. Compared to the previous auction, there was not enough trade for comparisons. However, the demand was good. Benchmark steers averaging 796 lbs. sold for $169.25.
New Mexico: Roswell Livestock in Roswell sold 1,725 head on Monday. Compared to the last auction, steer and heifer calves under 600 lbs. sold $2-6 higher, though quality was more attractive. Feeder steers over 600 lbs. sold $3 higher. Feeder heifers over 600 lbs. were steady to $2 higher. A group of steers averaging 719 lbs. sold between $136.50-140, averaging $137.88.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 10,000 head on Monday. Compared to a week earlier, feeder steers sold steady to $2 higher, and feeder heifers sold steady to $4 higher. Demand was moderate to good for feeder cattle. Steer calves sold $2-6 higher, and heifer calves sold $4-10 higher. Demand was very good for calves. Benchmark steers averaging 757 lbs. sold for $166.50.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 2,204 head on Monday. Compared to the previous sale, feeder steers 400-450 lbs. sold $34-35 higher; 450-500 lbs. sold $23-25 higher; 550-600 lbs. sold $17-18 higher; 600-650 lbs. sold steady to $3 lower; 650-700 lbs. sold $10-12 higher; 700-750 lbs. sold $1-3 higher; and 950 lbs. and higher sold $3-6 higher. Feeder heifers 400-450 lbs. sold $24 higher; 450-500 lbs. sold $5-8 higher; 500-550 lbs. sold $3-5 higher; 550-600 lbs. sold $3-4 lower; 600-700 lbs. sold $5-8 lower; and 750-800 lbs. sold steady to $4 lower. Benchmark steers averaging 726 lbs. sold between $158.50-164.50, averaging $163.19. — Anna Miller, WLJ managing editor
(Editor’s note: Due to the Thanksgiving holiday, WLJ went to press Wednesday morning. This report only includes information released as of Tuesday afternoon.)
