Cattle Current Daily—Nov. 23, 2021

Cattle Current Daily—Nov. 23, 2021

Negotiated cash fed cattle trade ranged from mostly inactive on very light demand to a standstill through Monday afternoon, according to the Agricultural Marketing Service.

Live prices last week were $1 higher in the Southern Plains at $133/cwt., $1-$2 higher in Nebraska at $133-$134, steady to $2 higher in the western Corn Belt at $132-$134 and steady to $3 higher in Colorado at $132-$135. Dressed trade was $3 higher at $210.

Cattle futures gained some traction Monday with support from last week’s stronger cash prices and the neutral Cattle on Feed report.

Feeder Cattle futures closed an average of 62¢ higher, except for unchanged in the back contract, amid light trade.

Live Cattle futures closed an average of 68¢ higher, from 32¢ higher at the back to $1.27 higher toward the front. 

Choice boxed beef cutout value was 84¢ higher Monday afternoon at $279.25/cwt. Select was 10¢ lower at $263.73/cwt.

Corn futures closed mostly 4¢ to 7¢ higher, riding wheat’s coattails.

Soybean futures closed 7¢ to 11¢ higher through the front six contracts, and then mostly 4¢ to 5¢ higher.

******************************

Major U.S. financial indices closed mixed Monday as bond yield rates and the Dollar index increased.  

The Dow Jones Industrial Average closed 17 points higher. The S&P 500 closed 15 points lower. The NASDAQ was down 202 points.

******************************

“Market-ready supplies of fed cattle have tightened and packers are actively chasing cattle for the first time in many months,” says Derrell Peel, Extension livestock marketing specialist at Oklahoma State University, in his weekly market comments. He notes the upper end of last week’s negotiated cash fed cattle price range was $9-$10 higher than the last week of October.

At the same time, Peel explains Oklahoma auction prices for feeder steers (800-850 lbs., Medium and Large #1) increased nearly 6% since September and are about 21% higher than when the year began.

“This increase in feeder prices reflects generally tighter feeder cattle supplies and fed market optimism as reflected in Live Cattle futures prices in 2022,” Peel explains. “This is despite sharply higher feedlot cost of gain — up 33% from January to September in Kansas feedlot surveys.”

Stocker steer and calf prices are up sharply from early October lows. Oklahoma auction prices for Medium and Large #1 steers weighing 450-500 lbs. rose 13% over the last seen weeks and are nearly 8% more than the beginning of the year, according to Peel.

“In general, cattle prices are higher now compared to last year and are expected to continue improving in 2022. Live Cattle and Feeder Cattle futures have priced in considerable optimism for 2022,” Peel says. “However, plenty of challenges remain for cattle producers with continued drought, higher input prices, supply chain disruptions and considerable short-term macroeconomic uncertainty. It will still be a bumpy ride, but producers can focus more on managing costs with cattle prices generally moving higher.”

2021-11-22T21:05:00-06:00

This Is A Custom Widget

This Sliding Bar can be switched on or off in theme options, and can take any widget you throw at it or even fill it with your custom HTML Code. Its perfect for grabbing the attention of your viewers. Choose between 1, 2, 3 or 4 columns, set the background color, widget divider color, activate transparency, a top border or fully disable it on desktop and mobile.

This Is A Custom Widget

This Sliding Bar can be switched on or off in theme options, and can take any widget you throw at it or even fill it with your custom HTML Code. Its perfect for grabbing the attention of your viewers. Choose between 1, 2, 3 or 4 columns, set the background color, widget divider color, activate transparency, a top border or fully disable it on desktop and mobile.

This Is A Custom Widget

This Sliding Bar can be switched on or off in theme options, and can take any widget you throw at it or even fill it with your custom HTML Code. Its perfect for grabbing the attention of your viewers. Choose between 1, 2, 3 or 4 columns, set the background color, widget divider color, activate transparency, a top border or fully disable it on desktop and mobile.

This Is A Custom Widget

This Sliding Bar can be switched on or off in theme options, and can take any widget you throw at it or even fill it with your custom HTML Code. Its perfect for grabbing the attention of your viewers. Choose between 1, 2, 3 or 4 columns, set the background color, widget divider color, activate transparency, a top border or fully disable it on desktop and mobile.