It was a mixed market last week in the final week before the Christmas and New Year holidays upend the usual market schedules. Cash cattle trade was slow but expected to be good and near-term futures seemed unconcerned about their overbought status.
Negotiated cash fed cattle trade was sluggish again last week. By the afternoon report on Thursday, only 5,616 head had been confirmed sold for the week, too low to set reliable price trends. Dressed prices had been mostly $187, the upper end of the prior week’s range. Analysts were expecting a steady trade with the prior week’s $114-119 live and $183-187 dressed prices.
“It looks like another late-Friday trade, with most offers at $122 and $190+,” observed Andrew Gottschalk of Hedgers Edge on Thursday morning. “The cash call remains steady for this week, with lower prices likely next week. Prices should overall continue to trend higher into the New Year.”
The cutouts wound up trading down over the course of the week, even though Monday saw the recent seasonal high for Choice of $215.42. By the close of trade Thursday, prices had fallen to $212.47 for Choice and $200 for Select.
Despite being called overbought by analysts and market watchers, near-term futures, both live and feeder, were on an upward tear last week. Over the course of the week, the December and February live cattle contracts gained just over $1.50 each to settle Thursday at $119.45 and $122.85 respectively.
Feeder cattle futures saw $3-4 gains through the week with the January contract settling at $147.98 and the March contract settling at $145.93.
Cassie Fish of the Beef Report noted on Thursday afternoon that the week’s futures rally was slowing due to technical indicators—being overbought catching up with the market.
“A minor correction between now and the upcoming holidays does not seem out of the question and would not take away from the overall positive look of the futures market.”
The surveyed feeder auctions were mixed last week, with many seeing reduced volumes and higher prices, and some seeing increased volumes with lower prices. Medium and large #1 steers weighing between 700-800 lbs. were mostly averaging in the $140s.
California: The Cattlemen’s Livestock Market sold more cattle last week than recently reported sales. Feeder cattle were called steady, though the price range on #1, 7-weight steers was $130-151, higher than the last report.
Colorado: The Winter Livestock auction in La Junta sold about 1,000 head fewer cattle last week compared to the week before, but prices were much higher. Light steer calves were steady to up $8 with preference for 4- and 5-weights. Heavier steer calves went for $3-5 higher. Light heifer calves were up $1-4, while those over 600 lbs. were steady to up $5 with preference for lighter heifer calves. Yearling steers were up $3-5 with instances of up $8 while there were too few yearling heifers for a trend. Benchmark steers ranged from $138-150.
Kansas: The sales volume was down last week at the Winter Livestock Auction. Prices were mixed, however, with yearling steers steady to $3 higher, and yearling heifers down $1-5. The dynamic was reversed on calves, where steers were down $4-6, and heifers were steady to $5. Discounts were reported on short-weaned or unvaccinated calves. No. 1, 7-weight yearling steers sold between $135-151.10.
Missouri: The Joplin Regional Stockyards sold about half as many cattle last week as it did the week before. Prices were steady to $5 higher on steer calves under 500 lbs., steady on 5- and 6-weight steers and all heifers under 700 lbs., and heavier classes of feeders were called weak to $3 down. A small lot of #1, 7-weight calves set the base of the range for benchmark steers at $130. A large lot of heavy yearlings set the top at $144.
Montana: The Miles City Livestock Commission sold almost triple the number of cattle last week as it did the week before. That made trends hard to come by. The best comparisons came on mid-weight steers, which sold up $5-10, and 5-weight heifers, which were steady to down $2. The benchmark steer offering was light with only calves and fleshy yearlings on offer. Prices ranged from $131-146.
Nebraska: The Huss Platte Valley Auction almost tripled its sale volume as well last week. Steers were up $3-6, and heifers were up $2-4. Long-weaned calves saw the best advance. Fleshy yearlings and calves set the base of the price range for #1, 7-weight steers at $144. Standard yearlings brought the top to $161.
New Mexico: The number of feeder cattle sold at the Clovis Livestock Auction was down about 1,000 head last week with only 2,806 head sold. Prices were mixed. Steer calves under 500 lbs. were steady to up $3, 5-weights were down $4, and others were steady to up $1. Heifer calves were down $2-3. There was no comment on yearling feeder prices. Prices on #1, 7-weight yearling steers ranged from $130-142, while a dozen 764-lb. calves averaged $117.35.
Oklahoma: the OKC West-El Reno sale sold less than half the number of cattle last week as compared to the week before. Steers were up $5-6 with instances of up $8 on heavy steers and were up $3-4 on heifers. Large volumes of standard #1, 7-weight yearling steers sold between $140-150.50. Small lots of benchmark calves and fleshy yearlings ranged from $130-133.
South Dakota: The volumes were down and the prices were steady on comparable cattle at the Hub City Livestock Auction. For once, it was a calf lot that set the high of the benchmark steer price range at $157. A small lot of heavy yearlings sold at $145.50.
Wyoming: The Torrington Livestock Commission sold more cattle last week with steady to lower prices, though there were few price trends available. Steer calves were called steady to down $2 and heifer calves were just steady. Benchmark yearling steers sold from $149.50-155.50. — Kerry Halladay, WLJ editor
