The markets were up overall last week following bullish Cold Storage data and non-bearish expectations for the Friday Cattle on Feed report.
“The fundamental pattern dominate in 2019 continues; cutout values trading above a year ago, record packer profit margins, slaughter levels above a year ago, carcass weights below a year ago,” summarized Cassie Fish of the Beef Report last week.
The Choice cutout was notably up week over week, with the Thursday close at $225.62 (up $7.58 compared to the Friday, Oct. 18 close). Select closed at $199.09, up $6.05.
Negotiated cash fed cattle prices were also up last week. Almost 40,000 head of negotiated cash fed cattle had been confirmed sold for the week by Thursday afternoon, with most of that volume selling on Thursday. Prices were $108-111 (average $109.95) live and $174.75 ($174.67) dressed. These prices were up $0.50-1 up from the averages set the week before.
The near-term cattle futures were mostly on the rise last week as well. The October live contract was down a net 5 cents with $110.43, but that was a minor loss and the other near-term contracts were up week to week. The December live contract gained a net $1.10 with a Thursday settle of $114.73. Gains got into the triple digits for near-term feeder futures, with the October contract gaining a net $1.73 with $145.23, and the November contract gaining a net $1.33 with $144.18.
Fish attributed a lot of the futures actions to bad news being in the rear-view mirror.
“Last week’s late week slaughter disruption and weaker cash trade in the south have disappeared from view and the deliveries that sank Oct [live cattle] have evaporated, retenders with $2 accrued demanded by a long,” she observed.
“The news gets better from here, with Finney County reopening by year’s end, along with the seasonal [demand trends]. Not to mention the red-hot wholesale beef market and record packer margins.”
Performance in the cash feeder cattle markets was also pretty good. Demand was generally up with a lot of sales selling more feeders for steady to higher money. Averages for medium and large #1 steers weighing 700-800 lbs. were more steadily in the mid- to upper-$140s in the surveyed sales.
California: At the Cattlemen’s Livestock Market of Galt, feeder cattle were called steady to higher, with preference going to heavier feeders. Benchmark feeder steers sold between $130-151.
Colorado: The Winter Livestock auction held its special seasonal feeder cattle sale last week. Over 5,100 head of feeders sold last week, compared to 2,300 head the week before. Where comparable, light steer calves were up $5-8, while heavier steers were called mostly steady. Heifers under 550 lbs. were up $2-4 with instances of up $8 on especially light calves. Heavier heifers were steady to down $3. Demand was called good for steers. Number 1, 7-weight steers sold for $132-141 for bawling calves, and averaged $146.48 on the 99-head lot of yearlings.
Kansas: The Winter Livestock auction of Dodge City sold a few hundred head more feeders last week than the week before. Six-weight steers were up $1-2 on a limited test, and 8-weights sold down $3-4. There were too few comparable sales on heifers for a market trend. Weaned steer calves were down $2-4 and a lower undertone was noted on unweaned calves. Two lots of benchmark yearling steers sold between $143-152.75
Missouri: Sales offerings were slightly smaller last week at the Joplin Regional Stockyards at 5,659 head. Calves were called $3-7 lower and yearling feeders were steady, with yearlings seeing the strongest demand. Demand was called light for unweaned calves and moderate to good on long-weaned calves. Prices on #1, 7-weight yearling steers ranged from $141-155.
Montana: Sales volume at the Miles City Livestock Commission was more than doubled last week with 3,739 head of feeders on offer. Steer calves were down $4-6 while yearling steers were too lightly tested for a market trend. Light heifer calves were mostly $5-8 higher, and heifers over 500 lbs. were steady to down $3. One 76-head lot of #1 yearling steers averaging 721 lbs. averaged $150.75.
Nebraska: The Huss Livestock Market sold 3,058 head of feeder cattle last week, up from the week before. Steers saw a donut effect where light were down $2, midweights were up $2-7, and heavyweights were down $3-5. Light heifers were steady to down $4 and anything over 500 lbs. sold steady to up $3. Unweaned #1, 7-weight steer calves sold $134.50-142.60, while yearlings sold between $148-149.50.
New Mexico: The Clovis Livestock Auction sold over 3,000 head of feeders last week. Light steers sold mostly $5-7 higher, with steers over 600 lbs. selling steady to $3 higher. Heifers were up $1-3. Unweaned #1, 7-weight steers sold between $124-129.50, while the 56-head lot of benchmark yearling steers averaged $135.
Oklahoma: Almost 10,000 head of feeder cattle sold last week at the National Stockyards. Steers were called steady to $2 higher and heifers were unevenly steady. Steer calves were down $1-3 and heifer calves were steady to down $2. Benchmark yearling steers sold between $144.50-158.25, while a 68-head lot of bawling calves averaged $141.02.
South Dakota: Receipts were down a bit at the Philip Livestock Auction last week and prices were mixed. Light steer calves were called steady to up $4 while midweights were steady to $2 lower. Heifers were steady. Only one lot of #1, 7-weight steers sold, averaging $143.75.
Wyoming: The Winter Livestock auction of Riverton sold almost 1,000 more feeders last week than the week before. Light steers sold $3-10 higher, while those over 450 lbs. were called steady. Heifers were steady with instances of $6-10 lower on especially light calves. Two lots of #1, 7-weight yearling steers sold, but their price ranges were far removed. The 30-head lot averaging 709 lbs. averaged $135.31 while the 18-head lot averaging 789 lbs. averaged $144. — Kerry Halladay, WLJ editor
