(Editor’s note: This report contains market comparisons to the prior issue’s Tuesday press date, not the standard Thursday to Thursday comparison.)
Coming back from a short week, the market failed to find much support higher.
Live cattle futures were several dollars lower. The December contract lost a little over $4 to close at $170.87, and the February contract lost $4.25 to close at $171.82.
“This market volatility has led to additional market shifts and growing uncertainty about the ability to sustain recent gains,” DTN wrote on Thursday. “Also uncertain is just how much additional support can be expected through the end of the year.”
Cash trade through Thursday totaled about 51,000 head. Live steers sold from $171-175, and dressed steers sold from $273-275.
“Although these prices are steady with midweek trade, current trade is $4 per cwt lower than last week’s weighted average in the north, and generally $2 per cwt lower in the South,” DTN said. “It is expected some trade will need to develop in the coming days, but the tone of the market may have been set already.”
Cash trade for the week ending Nov. 26 totaled 51,288 head. Live steers averaged $176.70, and dressed steers averaged $278.95.
The national weekly direct beef type price distribution for the week of Nov. 20-27 was the following on a live basis:
• Negotiated purchases: $176.83.
• Formula net purchases: $182.58.
• Forward contract net purchases: $174.09.
• Negotiated grid net purchases: $185.40.
On a dressed basis:
• Negotiated purchases: $279.05.
• Formula net purchases: $289.81.
• Forward contract net purchases: $276.71.
• Negotiated grid net purchases: $293.98.
Slaughter through Thursday is estimated at 494,000 head. Total slaughter for a week earlier (the holiday-shortened week) is projected at 538,000 head. Actual slaughter for the week ending Nov. 18 was 639,367 head. The average steer dressed weight was 936 lbs., 1 lb. below the prior week.
Boxed beef prices were mixed. The Choice cutout gained a little over $3 to close at $299.02, and the Select lost over $4 to close at $264.75.
“Boxed beef prices recovered this morning, Choice up $0.92 on a strong rib and Select jumping $3.20 though the spread is still a wide $30.66. Tis the season,” wrote Cassie Fish, market analyst, in The Beef on Thursday. “The packer is edging back into black ink this week. Still looking for a better harvest this week—635k or higher.”
Feeder cattle
Feeder cattle futures saw significant losses, with the January contract down over $11 to $219.95 and the March contract down $8.65 to $222.57.
“Although prices have moved firmly above multi-month lows in the past two trading sessions, the fact is prices are still nearly $50 per cwt below September and seasonal highs,” DTN said.
The CME Feeder Cattle Index was down about $2 to close at $224.77.
Corn futures traded lower, with the December contract down 9 cents to $4.61 and the March contract down 4 cents to $4.85.
Iowa: Russell Livestock in Russell sold 2,308 head on Monday. There was a special cattle sale that sold several load lots and many recently weaned calves. Compared to a week earlier, steers under 650 lbs. sold steady to $3 lower, while steers over 650 lbs. sold mostly higher. Heifers under 500 lbs. sold lower, while heifers over 500 lbs. sold mostly higher. Benchmark steers averaging 771 lbs. sold between $229-240, averaging $234.20.
Kansas: Winter Livestock in Dodge City sold 925 head on Wednesday. Compared to the last sale held two weeks prior, all classes sold on a light test. An overall higher undertone was noted, except for feeder heifers, which sold with a lower undertone. Benchmark steers averaging 802 lbs. sold from $213-235.50, averaging $233.34.
Missouri: Joplin Regional Stockyards in Carthage sold 8,000 head on Monday. Compared to a week earlier, feeder steers and heifers sold $6-10 lower. Benchmark steers averaging 789 lbs. sold between $218.50-234.50, averaging $225.75.
Nebraska: Tri-State Livestock in McCook sold 726 head on Monday. There were not enough sales for an accurate comparison. A group of steers averaging 663 lbs. sold between $241-246 and averaged $244.55.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 5,500 head on Monday. Compared to a week earlier, feeder steers under 750 lbs. sold steady to $3 higher, and a few steers over 750 lbs. and feeder heifers sold $3-6 lower. Benchmark steers averaging 793 lbs. sold between $215-227, averaging $221.96.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 2,486 head on Monday. Compared to the last auction, light steer calves, 600-700 lbs. sold $9-10 higher. Yearling steers 900 lbs. traded $4 lower. Yearling heifers 950 lbs. sold steady to $1 higher. Benchmark steers averaging 724 lbs. sold between $225-253, averaging $232.18. — Anna Miller, WLJ managing editor
