Bearish pressure continued to overwhelm the market last week. Though cash cattle did not reach last month’s low of $101.21, cattle traded $2-4 lower than the week before at $102-106. Dressed purchases traded between $166-166.
“A bearish mindset has taken over the market as traders are leery of supporting the livestock contracts and consequently the markets are scaling lower,” reported DTN Livestock Analyst ShayLe Stewart.
CME cattle futures are in a free fall. Last Monday, CME set the week up with live cattle and feeder contract losses above $3, and the November feeder contract almost at limit down, losing $4.95.
That trend continued throughout Thursday, with the October live cattle contract settling at $103.32 and the December contract at $103.47.
As of Thursday afternoon, 480,000 head had been slaughtered. This was 4,000 head more than the week prior and 8,000 head more than the same time last year. Thursday’s slaughter was predicted at 120,000 head, on trend with last week.
Boxed beef prices were up higher, remaining above usual seasonal averages. On Thursday, the Choice cutout was at $208.86 and the Select cutout was at $191.08. Cassie Fish of The Beef reported, “There will be a seasonal holiday rally for boxed beef prices heading into December, though whether we reach the level saw in August of $231 remains to be seen.
“‘Normally’ the late November/early December high would exceed that high, but 2020 is anything but normal,” she remarked. “Will a boxed beef rally help cash or futures? Given how oversold futures are becoming, it’s likely. But from what price level no one knows.”
Feeder cattle
Stewart reported calves continued to sell at lower prices as supply continues to outweigh demand and rising corn prices cause buyers to step back and keep break-even prices in check. The closing price for December corn Thursday was at $4.16. Just four weeks prior, corn was at $3.65.
Stewart also reported calves without a vaccination program and haven’t been long-weaned sold 8-12 cents lower than the week prior.
Feeder cattle futures were mostly red all week, with the October contract closing at $133.82 and the November contract at $130.42 on Thursday. Monday dropped the October contract $3.50 and the November contract $4.95, and the contracts never recovered. The CME Feeder Cattle Index as of Oct. 22 was down $2.83 to $135.53.
Colorado: Winter Livestock had their Seasonal Feeder Cattle Sale last Monday and sold 7,454 head. Compared with the week prior, calves sold uneven. Steers under 500 lbs. sold $5-8 higher with instances of $10 higher; 500-700 lbs. sold $3-5 lower; over 700 lbs. sold $1-2 lower. Heifer calves under 350 lbs. sold steady; 350-400 lbs. sold $2-4 lower; 400-500 lbs. sold steady to $5 higher advance on 400-450 lbs.; 500-650 lbs. sold $3-5 lower; over 650 lbs. sold mostly steady. Benchmark steers averaging 713 lbs. sold from $129-133.
Kansas: Winter Livestock inDodge City, KS, sold 3,645 head last week. Compared to the week prior, feeder steers 650-1,000 lbs. sold $4-7 lower, with instances of $10 lower. Feeder steers 600-650 lbs. sold $4 higher. Feeder steers 400-650 lbs. sold $3 lower, with instances of $5-8 lower. Feeder heifers 600-950 lbs. sold $2-5 lower, with instances of $8 lower. Feeder heifers 300-600 lbs. sold unevenly steady. Steers averaging 837 lbs. sold between $134-137, at an average of $135.69.
Missouri: Joplin Regional Stockyards in Carthage, MO, sold 4,826 head last Monday. Compared to the week prior, steer and heifer calves sold $7-12 lower and yearlings sold $3-8 lower. Demand was moderate to light and supply moderate. The bulk of the calves were unweaned with a few weaned vaccinated calves in the mix. Benchmark steers weighing 710 lbs. sold at $129.00-133.25, with an average of $131.61.
Nebraska: Sheridan Livestock Auction in Rushville, NE, sold 4,477 head last Wednesday. Compared to the week prior, steers sold steady to $5 lower, except 500-lb. steers sold $10 lower. Heifer calves sold $2-7 lower. Demand was moderate to good. Steers averaging 723 lbs. sold between $138-148, averaging $145.48.
New Mexico: Roswell Livestock Auction in Roswell, NM, sold 1,496 head last Tuesday. Compared to two weeks ago, steer calves and feeders sold $4-7 lower with instances of $11 lower on 500-550 lbs. Heifers sold $7-14 lower except 300-400 lbs. sold 4-5 lower. Slaughter cows sold $2-3 lower and bulls sold $4 lower. A small group of value-added heifers weighing an average of 585 lbs. sold at $112.50.
Oklahoma: Oklahoma National Stockyards sold 5,974 head last week. Compared to the week prior, feeder steers sold $3-8 lower. Feeder heifers sold $1-5 lower. Demand was moderate for feeder cattle with cattle futures closing sharply lower on Monday. Heifer calves sold steady to $3 lower. Steers weighing 704-747 lbs. sold at $129-135.
South Dakota: Philip Livestock Auction in Philip, SD, sold 7,340 head last Tuesday. Compared to two weeks ago, feeder steers 400-600 lbs. sold $2-4 lower; 600-750 lbs. sold $4-6 lower. Feeder heifers 450-500 lbs. sold steady; 500-650 lbs. sold $2-4 lower; 650-850 lbs. sold $3 lower; $850-950 lbs. sold $4-6 lower. Nearly all of the supply was home-raised, fully vaccinated, and carrying light to moderate flesh with favorable weighing conditions. Steers averaging 675 lbs. sold from $138-152.25, with an average price of $148.28.
Wyoming: Winter Livestock Auction in Riverton, WY, sold 4,964 head last week. Compared to the week prior, on a yearling and calf special, feeder calves were under pressure on an uneven market—steers calves under 550 lbs. sold steady with instances of $5-10 lower; 450-550 lbs. sold steady with instances of $2-3 higher. Heifer calves sold steady to $5-7 lower with instances of $8-10 lower. Yearling heifers sold steady to $3-4 lower; over 850 lbs. sold steady with instances of $5 higher. Steers averaging 565 lbs. sold between $138.75-152.60 with an average of $144.64. — Anna Miller, WLJ editor
