The markets were up last week, fueled by excitement over China and general seasonal gains. But there were indications Thursday that the trend might be shifting, at least in the short term.
“Overbought markets always find a reason to correct and today it was talk that big feeder runs in October 2019 will translate to a larger-than-expected placement number,” noted Cassie Fish of the Beef Report on Thursday afternoon.
This was clearest in the near-term feeder futures. Despite seeing slight week-to-week gains—Thursday settled at $144.20 (+10 cents) for October and $144.33 (+8 cents) for November—the futures saw triple-digit losses on Thursday. The impact was not as great on the near-term live cattle futures, which closed up week to week, seeing $2-3 gains with Thursday’s settlements at $112.40 for October and $114.38 for December.
“Cash cattle interest still remains sluggish Thursday with asking prices firming as the week continues,” noted DTN’s Rick Kment.
Relevant negotiated cash cattle volume did develop by Thursday, with prices at $111 live and $175 dressed on almost 10,000 head. This was up about $1 live and $3 dressed compared to the prior week’s averages. Beef prices were up too at $218.11 (+$2.45) Choice and $192.60 (+$3.92) Select.
Cash feeder trade was improved last week. Most of the surveyed feeder cattle auctions saw price and volume increases, and prices on most medium and large #1 steers weighing 700-800 lbs. had surged up into the upper-$140s and $150s.
Colorado: The La Junta Livestock Commission sold more cattle for mostly higher money last week. Steer calves under 500 lbs. were up $3-5 with instances of $8 higher on 3-weights. Midweight steers were steady to up $2. Light heifer calves were unevenly steady, but with instances of up $5 on 3-weights. Midweight heifers were steady to $5 lower. Yearlings over 700 lbs. were lightly traded but called mostly steady. Two lots of benchmark steers sold; the three-head lot of yearlings averaged $140, while the 16-head lot of unweaned calves averaged $137.07.
Iowa: Compared to the sale two weeks before, the Russell Livestock auction sold almost double the number of feeder cattle for steady to $4 higher prices on yearling steers. No other trends were noted on classes of feeders, though it was noted that short-weaned calves saw a discount. Two large lots of #1, 7-weight yearling steers sold between $143.50-157.25.
Kansas: The Winter Livestock auction of Dodge City saw mostly steady sales volumes at steady to higher prices. The best test was on yearling steers from 750-900 lbs. at steady to $2 higher. A higher undertone was noted on calves with the best demand being for long-weaned calves on a vaccination program. Several large lots of benchmark yearling steers sold, ranging from $147.75-155.85.
Missouri: The sales numbers almost doubled last week at the Joplin Regional Stockyards. Prices on feeder calves and yearlings of both sexes were steady to up $2. Demand was called moderate for calves and good for yearlings. One small lot of #1, 7-weight bawling calves brought an average of $140.36, while a pair of large lots of yearlings ranged from $140-155.
Montana: The number of feeder cattle that sold last week at the Miles City Livestock Commission was just slightly higher than the prior sale. Despite this, there were few comparable sales on feeders. The best test was on light 5-weight steers that were mostly $5 higher. All other classes were said to have had higher undertones. No #1, 7-weight lots were reported sold, but the unweaned 6-weight calves ranged from $142-153 and the yearling 8-weights ranged from $13950-143.50.
Nebraska: There were no comparisons at the Valentine Livestock Auction last week because the auction has not held a sale for a while. There were 5,640 head of feeders sold and demand was called good. Two large lots of benchmark yearling steers sold between $153-165.
New Mexico: The volume at the Clovis Livestock Auction was slightly down, but most prices were up. Steers were up $1-5, with preference for light steers. The exception was unweaned calves, which saw a $3 discount. Heifers were up $3-7 for those under 500 lbs., and up $2-3 on heavier heifers. Again, unweaned calves saw $2 discounts. Prices on benchmark steers were all over the map, influenced by both age/status and size of the lot. The 28-head lot of yearlings averaged $134.97, the 76-head lot of unweaned calves averaged $127.02, and the pair of unweaned calves averaged $112.
Oklahoma: The OKC West-El Reno sale sold over 10,200 head of feeders last week, up from the week before. Prices were up $2-4 on feeders with the exception of 9-weight steers, which were steady. Demand was called good. Several large lots of #1, 7-weight steers sold between $137-146 for fleshy yearlings, and $147-155.25 for standard yearlings.
South Dakota: The number of feeders sold at the Philip Livestock Auction jumped by almost 2,000 head last week. Prices similarly jumped up too. Light steers (under 500 lbs.) were up $8-15, while heifer steers were up $2-6 with prices favoring lighter animals in both classes. Heifers followed a similar pattern, with lights bringing $6-8 higher, and others bringing $2-6 higher. The sale was noted to have very good demand. One 45-head lot of #1, 710-lb. bawling steer calves averaged $151.04.
Washington: The Toppenish Cattle Auction’s special feeder sale saw light feeder steers sell $1-5 higher, and heavier steers selling $1-5 lower. Heifers were unevenly steady to down $3 with preference for heavier heifers. One 26-head lot of #1, 748-lb. yearling steers averaged $149.
Wyoming: The sales volume almost doubled last week at the Winter Livestock Auction of Riverton. This made for few comparable sales, though the best comparisons came on calves, which were said to be up $3-7 with instances of up $10-12. A 10-head lot of benchmark yearling steers averaged $149.50. — Kerry Halladay, WLJ editor
