’Twas the week before Christmas, and all save the boards, cattle trade numbers saw seasonal highs scored.
“The negotiated cash cattle trade has occurred today and cattle are still trading,” summarized Cassie Fish of the Beef Report on Thursday afternoon. By the close of trade, the negotiated cash fed cattle markets had cast their lot with prices of $119-121 (avg. $120.25) live and $190-192 ($191.93) dressed and almost 48,900 head had been confirmed sold for the week.
“It started in the south, where cattle feeders sold $1 higher than last week, the highest since May and higher than a year ago. Earlier in the week, predictions of a steady at best cash trade were widespread but fed cattle supplies have tightened, supporting higher prices despite expectations.”
On the other hand, beef cutouts kept with expectations of seasonal decline. Last week saw the Choice cutout shed over $7 with a Thursday close of $208.99. The Select cutout closed at $200.99, a loss of $3.25 over the course of the week.
“The Choice price is down roughly $30 since early November with the higher slaughter pace and that remains a bearish concern for future cattle prices,” commented DTN’s Todd Hultman Thursday morning.
“For the same reason, it doesn’t seem likely February cattle are ready to break above resistance at $130.”
Indeed, they didn’t, settling Thursday at $125.63, down a net $1.92 for the week. The December live contract closed at $122.13, a net loss of 25 cents over the week. The near-term feeder futures contracts were also down last week. The January contract settled Thursday at $144.73, a net loss of 95 cents compared to the prior Friday, and the March contract lost $1.42 to close at $144.83.
While the futures might have seen losses, the feeder cattle auctions saw gains much like the cash fed cattle markets. Medium and large #1 steers weighing 700-800 lbs. sold readily in the $140s and into the $150s.
Colorado: The Winter Livestock auction of La Junta sold less than half of the number of feeder cattle last week as it did the week before. Steers under 700 lbs. and heifers under 600 lbs. were $3-5 up, while heavier steers were up $2-4 and heavier heifers were up $2-3. Two lots of #1, 7-weight yearling steers sold between $138.50-148.
Iowa: Almost 2,000 head of feeder cattle sold last week at the Russell Livestock auction, almost double what sold the week before. Where comparable, 5- to 7-weight steers and heifers under 600 lbs. were up $4-8. Heavier heifers were up $3.50-10 higher. Trade was called active on good demand. Two lots of benchmark yearling steers sold, with the light (704 lbs.) lot averaging $137.46 and the heavy lot (753 lbs.) averaging $149.85.
Kansas: The Winter Livestock auction of Pratt sold 2,750 head of feeder cattle, less than half of the number that sold the week before. Steers over 750 lbs. were up $3-5. Feeder heifers were mostly down $2-4 on limited comparable weights. There were too few calves for a comparable trend. Two lots of #1, 7-weight yearling steers sold between $142-155.
Missouri: There was a massive decline in cattle sales at the Joplin Regional Stockyards last week with 3,055 head compared to the prior sale’s almost 12,000 head. Steers were called steady, except for 5-weights, which were $3-5 higher. Heifers were steady to $2 higher. Benchmark yearling steers ranged from $140-147.50.
Montana: The Miles City Livestock Commission sold 2,893 head of feeder cattle last week, fairly steady with the prior week’s numbers. Yearlings were too lightly tested for a market trend. Steer calves were mostly steady to $5 higher, with the exception of 5-weight calves, which were mixed up and down $3. Heifer calves sold mostly steady to up $6, with the exception of 5-weights, which were up $4-7. Quality was called average to attractive. There were a lot more unweaned calves on offer last week, which made comparisons more difficult. Two lots of benchmark steers sold, one of unweaned calves and the other of yearlings. Prices were narrow despite this at $142.50-144.
Nebraska: The offering was pretty steady at the Huss Livestock Market last week, but prices were steady to $5 higher on weaned steer calves and up $3-6 on weaned heifer calves. Several lots of benchmark yearling steers sold, ranging from $139 for a lot of fleshy steers, to $159 for a lot of 719-lb. yearlings.
New Mexico: The Clovis Livestock Auction sold almost 2,000 head of feeders last week. Prices were up significantly with steers under 650 lbs. bringing $5-10 more with instances of $13-15 more on 4-weight calves. Heifers under 650 lbs. were up $4-6 while heavier heifers were up $1-4. Trade was called very active. Three lots of #1, 7-weight steers sold, with the two lots of unweaned calves selling between $123.50-127.50 and the lot of yearlings averaging $132.81.
Oklahoma: The National Stockyards sold over 5,000 head fewer feeder cattle last week than it did the week before. Where comparable, 6-weight steers were down $1-2 and heavier steers were down $1-4. Heifers were generally steady to up $2. Steer calves were steady to down $2, while heifer calves were up $2-7. Demand was called good. Prices on benchmark steers ranged from $140 for eight head of “full” yearlings to $154 for a very large lot of lightweight yearlings.
South Dakota: The Sioux Falls Regional Cattle auction sold slightly fewer cattle last week with 5,134 head compared to the prior week. Feeders under 600 lbs. were $5-8 higher while heavier feeders were steady to $4 higher. Demand was called good for this offering of mostly weaned calves and long strings of yearlings. Several lots of #1, 7-weight yearling steers sold, ranging from $138-156.
Wyoming: The Torrington Livestock Feeder Cattle Auction sold half the number of feeders last week compared to the week before. Calves were called up $2-4 on excellent demand, especially on weaned calves. Several lots of yearling steers sold between $139-150.50. — Kerry Halladay, WLJ editor
