The markets were mostly down the week after Thanksgiving. While this is standard given the seasonality of the market, it was still a disappointment.
“The theme of the last few weeks has been the same. Futures sideways, cash higher and the cutout lower,” summarized Cassie Fish of the Beef Report.
The one bright spot last week was the negotiated cash fed cattle trade. By close of trade Thursday, over 16,700 head had been confirmed sold for the week with prices of $119 live and $187-189 (average $187.59) dressed.
Friday prices might have ended higher than this as well, given packer demand for cattle.
“Cash will still end up trading higher as packers compete to fill needs,” predicted Fish on Thursday. “The big news this week is fundamentally bullish. This week’s F.I. slaughter may exceed 670k head (last year was big at 669k). For the first week in December, there are only two years with kills larger than 670k since 2000- 2010 673k, 2001 675k. In 1996, 23 years ago, this week’s kill was 697k.”
“Time is ticking, packers are biddin’, and the race is on,” DTN’s ShayLe Stewart said Thursday afternoon about cash.
“Given that lots of cattle still need to trade to keep packers fully loaded and able to meet demand, the ball is in feeders’ court so long as the board doesn’t completely trade lower; if it does, steady prices with last week is still safe to bet.”
Cutouts lost about $7 in Choice with $225.60 and about $2 in Select with $208.12 over the course of last week.
Near-term futures contracts were also down last week, with net triple-digit losses across the board. In live cattle, near-terms contracts lost about $1.50 with December settling Thursday at $119.93 and February settling at $124.60. The feeder cattle board say similar net losses over the week with January settling at $140.55 (-$1.73) and March settling at $141.15 (-$1.88).
Cash feeder cattle trade was mixed coming back after the Thanksgiving holiday week. Averages on medium and large #1 steers weighing 700-800 lbs. were still in the mid-$140s, but more discounting was observed in the surveyed auctions.
Colorado: The Winter Livestock Auction of La Junta sold six times more feeder cattle last week than the week before. Despite the massive disparity in volume, there were some market trends with steer calves steady to up $3, heifer calves down $3-5, yearling steers up $2-4, and heifers mixed down $2 to up $3. Several lots of benchmark steers sold between $145-153 with one lot of unweaned calves averaging $133.83.
Kansas: The Winter Livestock auction of Pratt sold 4,000 head of feeders last week, more than double the prior week. Feeders sold $3-5 higher in both sexes, but calves were too lightly traded for a trend. Three lots of #1, 7-weight steers sold between $144-160.25.
Missouri: The sale volume at the Joplin Regional Stockyards was halved last week compared to the prior week. Despite that, calves were called $3-7 higher and yearlings were steady to $3 lower. Demand was called moderate to good. Benchmark yearling steers ranged from $139-148.50 while one small lot of bawling calves averaged $130.
Nebraska: Slightly more than 4,000 head of feeders sold last week at the Huss Livestock Market. There were no comparisons given too few comparable sales. Demand was called good. Several lots of benchmark steers sold between $140-159.75 inclusive of unweaned calves.
Oklahoma: Over 9,550 head of feeders sold last week at the OKC West-El Reno sale. Compared to two weeks prior, yearling steers, most long-weaned steer calves, and guaranteed open heifers sold steady. Other calves saw more variety with $2-6 increases and instances of $10-12 higher on long-weaned, thin-fleshed light calves. Most of the offering skewed light with 7-weights topping the #1 offering and bringing $134.50-148.50, inclusive of unweaned calves.
South Dakota: Last week, the Hub City Livestock Auction sold half of what it had the week before Thanksgiving. Steer calves were uneven, trading down $4 to up $2 with preference for heavier calves. Heifer calves were steady to up $2 with preference for 5-weights. The yearling offering was light but had steady undertones. Two large lots of #1, 7-weight yearlings averaged tightly in the mid-$140s.
Wyoming: The Torrington Livestock auction sold 4,633 head of feeders last week compared to the 303 head sold the week of Thanksgiving. Best comparisons were on calves with steers selling steady to up $3, while heifers were steady to down $2. One lot of benchmark yearling steers sold, averaging $149.51. — Kerry Halladay,WLJ editor
