Cattle futures bounced back Tuesday from recently oversold conditions, with more optimistic outside markets, despite softer cash prices and the shorter harvest schedule through the remainder of the year.
Feeder Cattle futures closed an average of $1.75 higher.
Live Cattle futures closed an average of 99¢ higher (85¢ to $1.17 higher).
Negotiated cash fed cattle trade ranged from limited on light demand to mostly inactive on light demand through Tuesday afternoon, according to the Agricultural Marketing Service. Although there were too few transactions for a trend, some live sales traded at $135/cwt. in the Texas Panhandle and Nebraska.
Last week, live prices were $2-$4 lower in Kansas and Nebraska at $136-$138/cwt. They were $4 lower in the Texas Panhandle at $136 and steady to $2 lower in the western Corn Belt at $138. Dressed prices were $2 lower in Nebraska at $218 and steady to $3 lower in the western Corn Belt at $217-$218.
Choice boxed beef cutout value was 99¢ lower Tuesday afternoon at $261.39/cwt. Select was 75¢ lower at $249.92/cwt.
Corn futures closed 4¢ to 8¢ higher through Jly ‘23, and then mostly 1¢ to 2¢ higher.
Soybean futures closed 10¢ to 19¢ higher through Sep ‘22 and then fractionally lower to 5¢ higher.
Major U.S. financial indices recovered a chunk of last week’s losses Tuesday, buoyed by positive quarterly corporate earnings reports.
The Dow Jones Industrial Average closed 560 points higher. The S&P 500 closed 81 points higher. The NASDAQ was up 360 points.
CME West Texas Intermediate Crude Oil futures closed $2.27 to $2.51 higher in the front six contracts.
Heading into Thursday’s monthly Cattle on Feed report, analysts expect to see the Dec. 1 feedlot inventory a touch less than a year earlier.
“Placements are expected to be up around 4.5% from last year. Other than last year, that would be the smallest November placements since 2016,” says David Anderson, Extension livestock economist at Texas A&M University, in the latest issue of In the Cattle Markets. “Fewer feeder cattle were imported from Mexico during the month while slightly more were imported from Canada. Placements in the expected range would follow the normal pattern of declining sharply from October’s placements.”
On the other end, November feedlot marketings are projected to be about 4.5% more year over year, due in part to one more slaughter day, according to Anderson.
“The combination of marketings and placements leaves the number of cattle on feed slightly below last year,” Anderson says. “On-feed inventories typically increase from November to December and the December inventory is often the highest for the year. December 2021 should be an exception to that with on-feed inventories in February being larger.”