Trade was light and sluggish last week ahead of the Thanksgiving holiday, but cattle futures stayed green all week.
Cash cattle trade was slow to develop, with live purchases trading mostly between $108-111 and averaging $110.68. Dressed purchases moved from $171-176, mostly at $173. The Fed Cattle Exchange sold a little over half of their offered cattle during their weekly online sale. Of 930 head offered, 543 head sold for $110.25.
The December live cattle contract was up a little over $3 from the Friday prior to settle at $111.26, and the February contract was up three-and-a-half dollars to $114.18.
The monthly Cattle on Feed report showed cattle and calves on feed in October 1 percent above 2019. Placements during the month were 11 percent down from last year. Marketings of fed cattle were slightly down from 2019 and other disappearance was 7 percent above last year. The lower number of placements helped recover futures from the prior week’s drop.
Wholesale beef prices were at the second highest in history for the week. The Choice and Select cutouts were each up over $7 to $245.06 and $220.90, respectively.
Processors rushed to get their kill numbers in during the short week and slaughter was at 360,000 head as of Wednesday afternoon.
Feeder cattle
Lower corn prices ($4.20, several cents lower from the week prior) led to higher support from traders.
Futures were higher all week. The January contract was over $5 higher to $140.28 and the March contract was nearly $5 higher to $139.28. News of promising COVID-19 vaccines has helped boost the economy, and give traders more confidence in buying.
The CME Feeder Cattle Index made some slight gains throughout the week, closing at $137.30—55 cents higher than Nov. 20’s close.
“It’s a touch-and-go week for feeder cattle sales as some barns cancelled their sales for the holiday, some barns are seeing phenomenal demand still, and some are noticing fewer buyers as many take the later part of the week off to spend time with family,” remarked ShayLe Stewart, DTN livestock analyst, in her Wednesday midday comments.
Colorado: Winter Livestock in La Junta sold 950 head last Tuesday. Compared with the week prior, steer and heifer calves and feeders sold mostly steady in a light test. Slaughter cows sold mostly steady and slaughter bulls sold $1-2 higher. Benchmark steers averaging 712 lbs. sold between $132-133, and averaged $132.68.
Iowa: Russell Livestock in Russell sold 3,782 head last week. Compared to the week prior, steers under 600 lbs. ended $1-5 lower, while the 600-850-lb. steers were mostly $1-8 higher. Heifers under 650 lbs. were steady to $7 higher. Heifers over 650 lbs. ended mixed. Benchmark steers averaging 785 lbs. sold between $136.50-145, and averaged $143.38.
Missouri: Joplin Regional Stockyards in Carthage sold 10,000 head last Monday. Compared to the week prior, steer calves and yearling steers under 750 lbs. sold steady; steers over 750 lbs. sold steady to $5 higher; heifer calves sold steady to $2 higher; and yearling heifers sold steady. Benchmark steers averaging 775 lbs. sold between $135-149 and averaged $144.80.
Nebraska: Tri-State Livestock Auction in McCook sold 1,485 head last week. Compared to the week prior, steers were $1-7 higher, and heifers were $4-7 lower. Demand was moderate to good. Benchmark steers averaging 780 lbs. sold for $140.
New Mexico: Roswell Livestock Auction in Roswell sold 2,535 head last week. Compared to the week prior: Steer calves under 600 lbs. sold $1-5 higher; over 600 lbs. sold steady on comparable quotes with not enough yearlings to establish a trend. Heifer calves under 600 lbs. sold steady to $1 higher, and over 600 lbs. sold steady. Value-added steers averaging 628 lbs. sold between $131-138.75, averaging $138.01.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 9,500 head last week. Compared to the week prior, feeder steers and heifers sold $2-4 higher on a light test. Steer and heifer calves traded $2-5 higher. Benchmark steers averaging 775 lbs. sold between $137-143.50 and averaged $140.46.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 1,615 head last week. Compared to the week prior there was a light offering of steer and heifer calves, many small packages, and too few comparable sales to make a definitive comparison. There were also too few comparable sales of yearling feeder steers and heifers to allow a full comparison, but higher undertones were evident. Benchmark steers averaging 773 lbs. sold between $142.50-143, averaging $142.73. — Anna Miller, WLJ editor
