Weekly Market Highlights

Markets were by no means a bust last week, considering that cattle and beef prices remain significantly higher compared to a year ago. They were disappointing, though, with cash fed cattle unable to build on momentum created the previous week.

Cash fed cattle prices were mainly $2 lower at $128/cwt. with Cattle futures helping set the stage for early trade. Dressed prices later on were steady to $1 lower at $204-$205.

“After a surprising limit-down drop of the Apr Live Cattle contract (on Wednesday), some true hedgers contacted packers to try and take advantage and put some unexpected extra dollars back in their trading account,” explained analysts with the Agricultural Marketing Service (AMS) on Friday. “With that hurried contact, packers felt they were in the driver’s seat and proceeded to buy fed cattle that were priced to them at $128. This week’s strong gains in the cutout value, coupled with the lower fed cattle trade, will keep packer margins in very good shape.”

Choice boxed beef cutout value was $8.49 higher week to week on Friday at $218.37 per cwt. Select was $7.70 higher at $212.82.

Live Cattle futures closed an average of $1.76 lower week to week on Friday ($1.07 to $2.80 lower).

Calf and Feeder Cattle Prices Uneven

Although demand for calves and feeder cattle continued mostly strong last week, winter weather and ice hampered receipts and demand at some auctions. The mid-week selloff in Cattle futures added uncertainty.

Overall, steers and heifers traded from $2/cwt. lower to $3 higher, according to AMS.

Feeder Cattle closed an average of $3.44 lower week to week on Friday ($2.82 to $4.02 lower).

The Cattle on Feed report issued Friday will likely be viewed as neutral to a little bearish by the trade—more bearish depending on what they already priced into the market. January placements were 4.4% higher year over year, rather than the static number expected. Marketings in January were 6.1% more than the previous year, about in line with expectations. Cattle on feed Feb. 1 were 7.9% more than the previous year, which was at the upper end of most expectations.

Friday to Friday Change*

Weekly Auction Receipts

CME Feeder Index

*Thursday-to Thursday for CME Feeder Index

Cash Stocker and Feeder

North Central

South Central

Southeast

(AMS National Weekly Feeder & Stocker Cattle Summary)

Wholesale Beef Value

Futures

Equities

Steer and heifer calves and feeders sold steady to $5/cwt. higher last week, according to the Agricultural Marketing Service. Analysts there say demand continued strong for cattle suited to summer grazing.

“Demand was quoted as good to very good at most auctions this week as long

strings and high-quality cattle were on consignments sheets,” AMS analysts say.

Along the way, drought continues to push more cattle to market earlier than normal.

Calf and feeder cattle prices were helped along by funds apparently extending their long position on fundamental strength and expectations. Perhaps part of those expectations had to do with the Economic Research Service reducing projected beef production for the year, based on more cattle placed earlier late last year, leaving fewer for this year. The monthly Cattle on Feed report due out this Friday will provide more insight to the placement picture.

Feeder Cattle futures closed an average of $3.71 higher week to week on Friday ($2.85 to $4.65 higher).

Snug front-end supplies and continued demand strength helped push cash fed cattle prices higher in late-week trade. Live prices were $3-$4 higher than the previous week at $129-$130/cwt. Dressed trade was $5 higher at $205.

Live Cattle futures closed an average of $2.60 higher week to week on Friday ($1.55 to $4.02 higher).

Wholesale beef values improved with a sense that the seasonal price rally is close at hand.

Choice boxed beef cutout value was $3.36 higher week to week on Friday at $209.88 per cwt. Select was $2.38 higher at $205.12.

Friday to Friday Change*

Weekly Auction Receipts

CME Feeder Index

*Thursday-to Thursday for CME Feeder Index

Cash Stocker and Feeder

North Central

South Central

Southeast

(AMS National Weekly Feeder & Stocker Cattle Summary)

Wholesale Beef Value

Futures

Equities

Cattle markets were slippery at best last week as volatile swings in equity markets—tied to escalating treasury yields and interest rates—compounded commodity market uncertainty.

For perspective, compared to two weeks earlier on Friday: The Dow Jones Industrial Average closed about 2000 points lower; the NASDAQ was down 511 points; the S&P 500 was 202 points lower. But they were up and down that much again.

Rather than hinting at some sort of catastrophic collapse in equities, odds favor the recent volatility being part of a long-expected market correction.

Calves and Feeders

When all was said and done, steers and heifers traded from $1 lower to $4/cwt. higher, according to the Agricultural Marketing Service (AMS).

“Even though horrible weather conditions were realized in many places, the demand for quality stock was not diminished one iota,” AMS analysts said.

All the while, expanding drought conditions continued to alter production and marketing decisions.

“Late summer and fall pasture growth was diminished with the lack of rainfall in the major cow-calf states and hay stocks are being consumed steadily as winter rolls on,” AMS analysts say. “Quite a lot of hay from Nebraska is being trucked to out-of-state feedlots and dairies. Some ranchers are loading up on hay, especially alfalfa hay to supplement cows and heifers after calving. Some cattlemen are having to supplement cows on cornstalks as most are under snow and cows are having a hard time rummaging up a enough mega calories to keep them going when the temperatures get in the teens and below.

Feeder Cattle futures closed an average of $3.08 lower week to week on Friday ($1.82 to $4.72 lower in spot Mar).

“The futures market has started to price in a more seasonal price trend the first three quarters of the year, but it currently has a fourth quarter price that is stronger than the seasonal tendency,” explains Andrew P. Griffith, agricultural economist at the University of Tennessee, in his weekly market comments. “Most Feeder Cattle contracts are within $10/cwt. of their contract high which occurred in early November 2017.”

Although there is potential for the market to move higher, Griffith suggests now may be the time to offset price risk for cattle that will be marketed in the second half of the year, especially in the fourth quarter.

Fed Cattle

Negotiated cash fed cattle trade remained stalled through late Friday afternoon, although fundamentals continued to suggest steady money at the worst. The previous week prices were at mostly $126/cwt. on a live basis; steady in the beef at $200.

Griffith notes that Through Thursday April (Live Cattle) was trading at more than a $2.50 discount to February and June was trading with more than an $8 discount to April.

“These steep discounts on the futures market should keep cattle moving through the pens and to packers, which should keep cattle weights manageable,” Griffith says.

After 32¢ lower in spot Feb, Live Cattle futures closed an average of $1.74 lower week to week on Friday (90¢ lower at the back of the board to $2.57 lower in near Apr).

Wholesale Beef Values

Choice boxed beef cutout value was $2.58 lower week to week on Friday at $206.52; Select was 71¢ lower at $202.74.

“Light boxed beef movement has allowed packers to keep wholesale beef prices elevated the first six weeks of the year, but a more seasonal tone came into the Thursday and Friday market,” Griffith explains. “February beef demand is always weak relative to most other months and that weakness is beginning to show up in wholesale beef prices.”

Friday to Friday Change*

Weekly Auction Receipts

CME Feeder Index

*Thursday-to Thursday for CME Feeder Index

Cash Stocker and Feeder

North Central

South Central

Southeast

(AMS National Weekly Feeder & Stocker Cattle Summary)

Wholesale Beef Value

Futures

Equities

Cash prices for calves and feeder cattle continued to follow Cattle futures higher as producers and traders considered the slowing expansion of the beef cowherd (see below) in tandem with expanding drought and early-placed cattle.

Steers and heifers sold steady to $4/cwt. higher, according to the Agricultural Marketing Service (AMS).

“Buyers bid readily from start to finish nationwide for the heavy supply of mostly weaned calves and feeder cattle on offer,” AMS analysts said. “At a few auctions in the Northern Plains, demand was noticeable on top-quality replacement heifers.”

Feeder Cattle futures closed an average $3.95 higher week to week on Friday.

“There has been less volatility in cash markets and a more steady hand as stocker operators and feedlot managers continue to be active participants in the calf and feeder cattle markets,” says Andrew P. Griffith, agricultural economist at the University of Tennessee, in his weekly market comments.

When all was said and done last week, cash fed cattle sales were steady to $1 lower at mostly $126/cwt. on a live basis; steady in the beef at $200.

Live Cattle futures closed an average of $1.84 higher week to week on Friday ($1.00 to $2.42 higher).

Likewise, wholesale beef values continued to edge higher. Choice boxed beef cutout value was $2.27 higher week to week on Friday at $209.10. Select was $1.62 higher at $203.45.

“January and February tend to be poor demand months for beef relative to other months of the year,” Griffith says. “However, packers have been able to push wholesale beef prices higher, even with strong weekly beef production. Beef production the first four weeks of 2018 is 3.4% greater than the same weeks in 2017, while wholesale Choice boxed beef prices have been $6 to $17 higher than year-ago prices…All current information is very supportive of strong beef prices with continued strong exports, strong domestic consumption, and economic factors supporting increased disposable income for consumers.”

Herd Expansion Slowing

The nation’s beef cowherd continued to expand last year at a slowing rate, according to the USDA Cattle report.

There were 31.72 million beef cows to start the year. That’s 509,800 head more (+0.74%) than Jan. 1 of 2017.

There were 6.13 million beef replacement heifers, which was 3.72% less than at the beginning of last year.

The total inventory of all cows and calves Jan. 1 was 93.70 million head, which was 0.74% more than the previous year.

AMS analysts point out total cattle numbers are the largest in nine years.

Based on futures price trends following the report, traders view the report as friendly.

One other insight from the Cattle report.

“With the recent drought conditions in the Southern Plains, cattle have been moving off wheat and winter pastures at a pretty good clip,” AMS analysts say. “The 1.5 million head listed as grazing small-grain pasture is the lowest total since January 2013, when the severe drought in fall of 2012 was realized.”

Friday to Friday Change*

Weekly Auction Receipts

CME Feeder Index

*Thursday-to Thursday for CME Feeder Index

Cash Stocker and Feeder

North Central

South Central

Southeast

(AMS National Weekly Feeder & Stocker Cattle Summary)

Wholesale Beef Value

Futures

Equities

Calves and feeder cattle traded steady to higher with improving weather during the week and stronger futures for most of the week.

Specifically, steer calves sold $5-$10/cwt. higher, according to the Agricultural Marketing Service (AMS). Heifer calves, as well as yearling steers and heifers sold steady to $5 higher.

“The supply of feeders was moderate to heavy, made up of mostly fall calves in the 500-750 lb. range,” AMS analysts say. “Receipts are always generally heavy if weather cooperates this time of year, but dry conditions and lack of water are causing several producers to market cattle a few weeks earlier than they might typically prefer.”

Dwindling wheat pastures in places like Kansas and Oklahoma serve as the most visible affirmation of the fact. Although some of those cattle are moving under the same ownership, AMS analysts say, “Cattle that are coming to the barns are being eagerly absorbed with many orders existing for summer grazing cattle as there is plenty of optimism that rains will come and grass will grow.

Feeder Cattle futures closed an average $2.01 higher week to week on Friday.

Live Cattle futures closed an average of $1.54 higher week to week on Friday (80¢ to $2.75 higher in spot Feb).

That was after a sudden and steep selloff on Thursday, for no apparent reason, before bouncing back on Friday.

The unexpected stutter in futures prices and wonderments about the monthly Cattle on Feed (COF) report to be issued late Friday helped stymie cash fed cattle trade through Friday afternoon.

Logic suggests a neutral to slightly bearish reaction to the COF heading into the new week. Although December placements were higher than expected, they were a far cry from the double-digit increases of recent months.

Wholesale beef values held their ground.

“Beef demand has been very supportive of the markets as shown by the Cold

Storage report released last week,” AMS analysts say. “Even with a larger herd nationwide, the industry is doing a great job keeping product moving.”

Choice boxed beef cutout value was $1.97 higher week to week on Friday at $206.83; Select was $1.67 higher at $201.83.

“Though beef movement has been slowed by weather, boxed beef prices reversed direction this week and moved to the upside,” noted Andrew P. Griffith, agricultural economist at the University of Tennessee, in his weekly market comments. “How long price increases can be sustained during a time period that generally experiences seasonal declines in demand is not known. Price support in January and February is generally led by end meats before succumbing to strength of middle meats in the spring and summer months. The price strength being witnessed this January may just be another sign of strong beef demand, which has been persistent since 2015. It is likely the market will experience another downturn before making a run in the spring.”

Friday to Friday Change*

Weekly Auction Receipts

CME Feeder Index

*Thursday-to Thursday for CME Feeder Index

Cash Stocker and Feeder

North Central

South Central

Southeast

(AMS National Weekly Feeder & Stocker Cattle Summary)

Wholesale Beef Value

Futures

Equities

Calf and feeder cattle prices started the week softer with continued pressure from Cattle futures and extreme winter weather. When futures rebounded, cash prices followed suit.

Feeder steers and heifers sold steady to $8/cwt. lower early in the week and then $2-$8 higher after the mid-week bounce in futures prices, according to the Agricultural Marketing Service (AMS).

Likewise, steer and heifer calves sold steady to $6 lower early in the week and then steady to $8 higher.

“In the North Plains, heavier-fleshed backgrounded cattle are plentiful, however grass cattle and high-quality replacement heifers are in high demand currently with not enough to go around for the buyers,” AMS analysts say.

Feeder Cattle futures closed an average $2.80 higher week to week on Friday.

“At this time, there is no reason to expect an increase or decrease in calf and feeder cattle prices,” says Andrew P. Griffith, agricultural economist at the University of Tennessee, in his weekly market comments. “One piece of information to keep an eye on is the Drought Monitor. Nearly 61% of the country is experiencing abnormal dryness to extreme drought, which is 18 percentage points higher than the end of November.”

Griffith explains drought areas include the Great Plains and much of the Southeast, with the driest areas in the panhandles of Texas and Oklahoma.

“These drought conditions will continue to weigh on wheat grazing country, which is not supportive of calf prices. However, the poor grazing conditions in this area have been persistent through much of the late fall and early winter months and are largely priced into today’s market,” Griffith says. “The market may have to make it through the first quarter of 2018 before significant price improvement occurs. However, producers should not be expecting a repeat of 2017 where prices strengthened from January through June and then held steady for much of the second half of the year. The market continues to slowly seek the historical seasonal price trend and decision makers should consider this.”

Fed Cattle Prices Looked Higher

“Anecdotes of Northern Plains feedyards shipping cattle to the Southern Plains to complete kills for the week were abuzz around the industry with feedyards willing to wait and see if prices got better later in the week,” say AMS analysts.

There were too few cash fed cattle trades to trend through Friday afternoon. According to the AMS Cattle Dashboard, 1,036 head were reported on Friday with steers selling for $121.31/cwt. on a live basis and at $193 in the beef.

Similarly, the Texas Cattle Feeders Association reported its members trading steers about $2 higher than the previous week at $122.04 and heifers about $3 higher at $123.

The previous week, live trade was at $120/cwt. in all major cattle feeding regions. Dressed trade was at $192 in Nebraska and the western Corn Belt.

Live Cattle futures closed an average of $2.65 higher week to week on Friday ($1.60 higher to $4.52 in spot Feb).

“Given the futures close for the week, cattle feeders hold a little leverage over packers in the short term…Cattle feeders’ leverage should last as long as the futures price holds,” Griffith says.

Choice boxed beef cutout value was $3.37 lower week to week on Friday at $204.86; Select was $1.48 lower at $200.16.

According to AMS, dressed steer slaughter weights were reported at 900 lbs. for the week ending Jan. 6, which is 5 lbs. below last year and 10 lbs. below the previous 5-year average.

A wildcard heading into this week will be the absence of data provided by the Agricultural Marketing Service, if the government shutdown continues.

Friday to Friday Change*

Weekly Auction Receipts

CME Feeder Index

*Thursday-to Thursday for CME Feeder Index

Cash Stocker and Feeder

North Central

South Central

Southeast

(AMS National Weekly Feeder & Stocker Cattle Summary)

Wholesale Beef Value

Futures

Equities

Follow through pressure on Cattle futures for most of the week and heavy auction volume helped pressure cash calf and feeder cattle prices last week. Nationwide, feeder steers and heifers sold mostly $5-$10/cwt. lower, according to the Agricultural Marketing Service (AMS). There were instances of $15 lower. The exception was steady to $5 lower for steer and heifer calves weighing less than 550 lbs.

“Livestock markets are getting back to normal schedules after the holidays,” noted AMS analysts. “Auction receipts of 372,300 were the largest auction volume reported since 2010.”

Except for $2.27 lower in spot Jan and 5¢ lower in Aug, Feeder Cattle futures closed an average 54¢ higher week to week on Friday (22¢ to $1.02 higher).

Cash fed cattle prices trended lower with some cattle feeders taking advantage of the basis and looking to trade cattle early in the week before expected winter storms. AMS analysts added, “Some feedlots had limited interest in procuring large numbers of cattle with another round of bone-chilling temps headed their way.”

Cash fed cattle prices were mostly $1 lower, but as much as $3 lower at mainly $120/cwt. Dressed trade was mostly $1-$3 lower at $192.

“Packers did try to make up some ground after the holidays and harvested 611,000 cattle this week; 2,000 more than the same week a year ago,” say AMS analysts.

Live Cattle futures closed an average of 82¢ lower (30¢ to $1.87 lower in spot Feb).

“The expectation for beef production to remain strong the next several months will continue to put pressure on finished cattle prices,” says Andrew P. Griffith, agricultural economist at the University of Tennessee, in his weekly market comments. “Some of this pressure may be relieved once spring arrives, but it is difficult to tell how the winter will impact finished weights and how many cattle will be available to go on feed in the near term.”

Although wholesale beef prices were little changed week to week, they appear to be past a seasonal peak.

Choice boxed beef cutout value was $1.28 lower week to week on Friday at $208.23; Select was 68¢ lower at $201.64.

“The ability to hold prices steady should be considered a win, given beef production totals and weather events negatively impacting much of the East Coast and the Northeast regions of the United States,” Griffith says. “Anytime big population centers are slowed by winter weather, pressure is put on the beef industry. When a weather event hits simultaneously with strong beef production, further downward pressure is asserted. There will continue to be struggles in January and February to push beef prices higher as much of the focus will be on end meats. This focus will result in the Choice Select spread continuing to narrow.”

Friday to Friday Change*

Weekly Auction Receipts

CME Feeder Index

*Thursday-to Thursday for CME Feeder Index

Cash Stocker and Feeder

North Central

South Central

Southeast

(AMS National Weekly Feeder & Stocker Cattle Summary)

Wholesale Beef Value

Futures

Equities

Calves and feeder cattle traded mostly higher at auction amid holiday-shortened receipts and severe winter weather. Nationwide, the trend for steers and heifers was $2-$8/cwt. higher, according to the Agricultural marketing Service (AMS).

“There were still several auctions nationwide that didn’t have sales due to the holiday or the bone-chilling Polar Vortex that encapsulated much of the country,” AMS analysts explained. “Reports were that farmer-feeders in the Northern Plains were content to mostly stay on the sidelines as they concentrated on keeping feedyard equipment running instead of receiving and processing cattle in the subzero temperatures.”

Cattle futures held their own, too, until a hard fall on Friday.

Except for 62¢ higher in spot Jan and 15¢ lower at the back of the board, Feeder Cattle futures closed an average 85¢ lower week to week on Friday (42¢ to $1.30 lower).

Most indications until Friday pointed to higher cash fed cattle prices for the week; at least no worse than steady. Prices ended up softer, though, as Cattle futures wavered with the lack of cash directions, then fell with liquidation Friday morning. That helped prompt some cattle feeders to go ahead and trip the trigger.

Cash fed cattle prices were mostly steady to $1-$2 lower on a live basis Friday at $121-$123/cwt. Dressed trade was steady to $1 lower at $193-$195.

Live Cattle futures closed an average of $1.57 lower through the front four contracts week to week on Friday ($1.10 to $2.20 lower); an average of 66¢ lower across the rest of the board, except for 25¢ higher in away Jun.

“Packers have been aggressive coming back after the holidays to post a slaughter of 541,000 for this shortened week of the New Year, right in line with last year’s numbers,” AMS analysts say.

Resurgent wholesale beef values are offering packers added incentive to keep the chains moving.

Choice boxed beef cutout value was $6.61 higher week to week on Friday at $209.51; Select was $9.34 higher at $202.32.

“The Choice composite cutout price has increased more than $10 over the two-week period while the Select cutout price has increased nearly $15,” says Andrew P. Griffith, agricultural economist at the University of Tennessee, in his weekly market comments. “The change in relative prices is to be expected as consumers move from middle meats to end meats and as slow cooking takes center stage in many households. Another factor to be aware of is the snow storm surging up the eastern coast of the United States. The storm could slow beef movement in the region and put a damper on beef prices.”

Friday to Friday Change*

Weekly Auction Receipts

Compared to two week earlier

CME Feeder Index

*Thursday-to Thursday for CME Feeder Index

Cash Stocker and Feeder

Compared to two weeks earlier

North Central

South Central

Southeast

(AMS National Weekly Feeder & Stocker Cattle Summary)

Wholesale Beef Value

Futures

Equities

Prices were narrowly mixed at the few calf and feeder cattle auctions taking place last week. There was no national price trend for cash calves and feeders since most auctions were closed for the holiday.

Overall, market fundamentals remain firm, with feedlot marketing apparently remaining current, wholesale beef values finding some traction and markets shrugging off the bearish monthly Cattle on Feed report from the previous Friday. Issued during trading hours, the report helped pressure Cattle futures lower on the day. Futures bounced higher on Tuesday, though.

Apparently, bearishness was tempered by advantages to the significant increase in lightweight placements, which are the product of continued aggressive feedlot marketing, as well as dry conditions in the Southern Plains upending plans for wheat pasture. Overall, November placements were 13.9% more than the previous year and about 9% more than pre-report estimates.

Derrell Peel, Extension livestock marketing specialist at Oklahoma State University, pointed out in his weekly market comments that 20.3% more cattle went on feed in November weighing less than 700 lbs., compared to the previous year.

“These lightweight placements will be marketed later and are not bunched up with earlier placements,” Peel explained. He added, “Recent large placements mean that feedlots are pulling cattle forward by placing feeders at a faster rate than the growth in feeder supply.”

Cattle futures also received an early-week jolt from the severe cold and winter weather making its way across much of the U.S., which will impair feedlot performance.

Feeder Cattle futures closed an average of $3.79 higher week to week on Friday ($2.50 to $4.45 higher).

Live Cattle futures closed an average of $2.71 higher week to week on Friday ($2.17 to $3.17 higher). And that was with cash fed cattle trade stymied through late Friday afternoon.

Though too few to trend, through Saturday morning, AMS reported 1,266 head of fed cattle trading hands. Steers brought $120.27 on a live basis and $193.17 in the beef. Dressed heifer sales were at $196.

The previous week, negotiated cash fed cattle prices were mainly steady on a live basis at $120/cwt. Dressed prices were steady to $2 higher at $190-$191.

Wholesale beef value reversed directions, too.

Choice boxed beef cutout value was $3.34 higher week to week on Friday at $202.90; Select was $5.10 higher at $192.98.

Friday to Friday Change*

Weekly Auction Receipts

**Last Available**

CME Feeder Index

*Thursday-to Thursday for CME Feeder Index

Cash Stocker and Feeder

**Last Available**

North Central

South Central

Southeast

(AMS National Weekly Feeder & Stocker Cattle Summary)

Wholesale Beef Value

Futures

Equities

Steer and heifer calves and yearlings sold $2/cwt. on each side of steady last week, according to the Agricultural Marketing Service (AMS).

“There was a great deal of optimism in the cattle complex as the week started. With the holidays upon us, the week represented the last marketing opportunity in 2017,” said AMS analysts. “Very few auctions will hold sales next week as buyers, feedyards, and auction market personnel take a break after the last few weeks of hard-running at auctions.”

Feeder Cattle futures closed an average of $5.73 lower week to week on Friday ($4.20 to $7.00 lower).

Andrew P. Griffith, agricultural economist at the University of Tennessee provided further perspective in his weekly market comments relative to the divergence between cash prices and Feeder Cattle futures heading into Friday’s report.

“Since Jan. 1 of 2012, the basis between the CME Feeder Cattle Index and the nearby feeder cattle futures contract (Index – Futures = Basis) has ranged from nearly a negative $14 to a positive $15, with the average basis being a positive $0.69,” Griffith says. “The basis between the Feeder Cattle Index and January feeder cattle futures has averaged a little over a positive $7.50 the past couple of weeks. The market has seen a similar positive basis being sustained in the late November and December time periods of 2014 and 2015. However, the following action differed by the year. Following strong basis values at the end of 2014, basis values continued to be strong into January 2015. Alternatively, following strong basis in late 2015, the basis turned severely negative and then moved more towards the average basis in early 2016. The key, though, is that futures prices moved higher in each case. Thus, the expectation moving into January is for the basis on feeder cattle to soften but the softening is expected to come from firming feeder cattle futures and steady cash prices in the country. What this means is that sellers should be cautious using the futures market to hedge marketings in the next month. Alternatively, buyers might benefit from gains in the futures while the cash price sits steady.”

Negotiated cash fed cattle prices were mainly steady on a live basis last week at $120/cwt. Dressed prices were steady to $2 higher at $190-$191.

Except for 92¢ higher in spot Dec, Live Cattle futures closed an average of $2.76 lower week to week on Friday ($1.90 to $3.57 lower).

Choice boxed beef cutout value was $2.31 lower week to week on Friday at $199.56; Select was $4.62 higher at $187.88.

Although cash prices remained resilient across the cattle complex last week, futures fluctuated with increasing uncertainty, then turned bearish with Friday’s Cattle on Feed report.

There were 13.9% more cattle placed on feed than a year earlier (2.1 million head), which was about 9% more than expectations.

Plus, AMS analysts say, “With less wheat pasture available to graze this year, many cattle have made their way or are going to make their way to feedyards in pretty short order.”

Marketings were 1.84 million head (+3.2%). Total cattle on feed Dec. 1 for feedlots with 1,000 head or more capacity ( 11.52 million head) was 8.1% more than a year earlier.

Friday to Friday Change*

Weekly Auction Receipts

CME Feeder Index

*Thursday-to Thursday for CME Feeder Index

Cash Stocker and Feeder

North Central

South Central

Southeast

(AMS National Weekly Feeder & Stocker Cattle Summary)

Wholesale Beef Value

Futures

Equities