The holiday-shortened week didn’t have much going on in cash cattle trade last week, but the early Cattle on Feed report kicked the futures markets into high gear.
By the afternoon report on Wednesday, Nov. 21, over 18,500 head of negotiated cash fed cattle had been confirmed sold. Prices ranged from $112-114 (average $113.23) live and $180 dressed. This was a strong steady with the prior week’s sale.
Just like the cash fed cattle trade, the feeder sales were unsurprisingly light last week. Few sale barns held auctions. Those that did saw sharp divides in calf vs. yearling prices. Medium and large #1 steer calves weighing between 700-800 lbs. generally averaged in the lower $130s while yearlings averaged in the upper $140s.
Colorado: The Winter Livestock auction of La Junta last week sold almost a tenth of what it did the week before. Despite that massive disparity, calves were called steady to up $3 on comparative sales. Yearlings were too lightly tested. One lot of #1, 724-lb. steer calves averaged $139.53.
Missouri: The sale volume doubled last week at the Joplin Regional Stockyards. Light calves were called steady to firm, while those over 500 lbs. were steady to down $3. Too few comparable yearling sales for a trend. Several lots of benchmark steers sold with yearlings averaging between $149-150, and calves ranging from $131-145.
Montana: The volumes were down, but the prices were mostly up, at the Miles City Livestock Commission. Sharply higher undertones were noted on calves under 500 lbs., while those over were mixed; 5-weights were up $2-4 while heavier calves were down $4-6. Yearlings had few comparable sales. Only two head of benchmark steers sold; they were 733-lb. calves and brought $144.
New Mexico: Calves weren’t doing well at the Roswell Livestock Auction. Steer calves were steady to $2 lower, except for $6 discounts on 3-weights, and heifer calves were down $2-6. No comparison on yearling feeders. A half load of #1, 7-weight, value-added calves averaged $135.25.
Oklahoma: With almost 8,000 head sold last week, the Oklahoma National Stockyards were the busiest of the surveyed auctions. Steers were called mostly $1-4 higher with heifers up $3 on limited comparable sales. Calves were up $1-7. Several large lots of benchmark steers sold, but there was a clear divide in prices between yearlings and calves. Calves ranged from $132-137 while yearlings ranged from $140-150.
South Dakota: At the Philip Livestock Auction, prices broke down along weight lines. Steers under 600 lbs. were steady to up $7, while those over were steady to down $3. In heifers, the same weight break existed with lights fetching $4 premiums and heavies seeing $3 discounts. One lot of #1, 726-lb. steer calves averaged $143.32.
Wyoming: The Riverton Livestock Auction last week sold half of what it had the week before. There were no comparisons on yearling feeders, but feeder calves were down $2-5 with instances of down $9-12 in both sexes. Two small lots of benchmark steer calves ranged narrowly from $134.75-136.50.
Near-term futures lit up on the latter half of Wednesday with triple-digit gains for weekly net gains at about $1 for live cattle and $2 for feeder cattle. The unexpected positive results of the early Cattle on Feed report were credited with causing the gains.
By close of trade on Wednesday, the near-term settlements were as follows: December live, $116.40; February live, $120.75; January feeders, $148.63; and March feeders, $145.18.
Cattle on Feed
The November Cattle on Feed report came out Nov. 21 just before Thanksgiving. In all areas, the reality of the report was fundamentally better than average pre-report expectations. The Nov. 1 on-feed population was up 3 percent (compared to the pre-report prediction of +4.3 percent); placements into feedlots during October was down 6 percent (vs. -1.2 percent); and marketings out of feedlots during October were up 5 percent (vs. +4.2 percent).
The cutouts gained a few cents over the course of the short week at $213.69 (+78 cents) Choice and $198.26 (+69 cents) Select on Wednesday. — Kerry Halladay, WLJ editor
