Reports of a New World screwworm detected in a cow in Mexico shuttered the country’s live cattle exports to the U.S., sending feeder cattle futures higher with the news.
Live cattle futures continued to trade mostly steady through Tuesday, with the December contract up $1.30 to $186.90 and the February contract up 28 cents to $187.70.
Cash trade through Tuesday had yet to develop, with about 1,200 head sold through Tuesday afternoon.
“Still no cash cattle trade has developed, but asking prices are noted in the South at $189 but are still not established in the North,” wrote ShayLe Stewart, DTN livestock analyst, in her Tuesday midday comments.
Cash trade for the week ending Nov. 24 totaled 67,329 head. Live steers averaged $186.46, and dressed steers averaged $291.74.
Slaughter through Tuesday totaled about 246,000 head, compared to 244,000 head a week earlier and 250,556 head a year earlier. Slaughter for the week ending Nov. 25 is estimated at 631,000 head.
Boxed beef prices were several dollars higher ahead of the Thanksgiving holiday, with the Choice cutout up $4.78 to $311.57 and the Select cutout up $2.57 to $275.49.
USDA released its latest Cattle on Feed report on Nov. 22. Cattle and calves on feed on Nov. 1 totaled 12 million head, slightly above last year. Placements and marketings were each 5% higher than a year earlier. Other disappearance totaled 55,000 head, unchanged from 2023.
Feeder cattle
On Nov. 22, the Animal and Plant Health Inspection Service was notified of a positive detection of the New World screwworm in Mexico, leading the agency to restrict imports until more information is known.
“This obviously sparked higher feeder cattle prices as the U.S. is already short on feeder cattle supplies with its historically low beef cow herd,” Stewart said.
Feeder cattle futures were several dollars higher at the beginning of the week, with the January contract gaining $4.65 to close at $258.10 and the March contract up $4.37 to $256.47.
The CME Feeder Cattle Index gained $1.44 to close at $255.71.
Corn futures were slightly lower, down 6 cents to $4.20 on the December contract and down 8 cents to $4.28 on the March contract.
Missouri: Joplin Regional Stockyards in Carthage sold 12,000 head on Monday. Compared to a week earlier, feeder steers sold steady to $15 higher and feeder heifers sold $5-20 higher. Benchmark steers averaging 772 lbs. sold from $263.50-273.50, averaging $265.15.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 7,000 head on Monday. Compared to a week earlier, feeder steers and heifers sold $4-10 higher with instances of up to $15 higher. Steer and heifer calves sold $10-15 higher with instances of up to $20 higher. Benchmark steers averaging 780 lbs. sold from $244-259, averaging $254.28.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 1,788 head on Monday. Compared to the previous sale, steer and heifer calves sold with higher undertones and yearling feeder steers also sold with higher undertones. Benchmark steers averaging 782 lbs. sold from $246-267, averaging $256.82. — Anna Miller, WLJ managing editor
(Editor’s note: This report was compiled with information released as of Tuesday, Nov. 26 due to an earlier WLJ press schedule for the Thanksgiving holiday.)
