Steers and heifers traded mixed, from $4 lower to $5 higher with lots of steady money, according to the Agricultural Marketing Service (AMS). Through the Plains, north to south, the strongest demand was for steers weighing 800-900 lbs., according to averages in the National Weekly Feeder and Stocker Cattle Summary.
“Demand was good to very good at auctions as there were many more weaned calves with an overwhelming number having a total preconditioning program,” AMS analysts said. “Most calves were sold in moderate flesh, however there were some light-fleshed and some a little heavier at times. The mild weather has allowed calves to easily maintain and gain body condition.”
Except for 65¢ higher in the back contract, Feeder Cattle futures closed an average of $2.30 higher week to week on Friday ($1.87 to $2.77 higher).
Despite languishing wholesale beef values and indications earlier in the week that cash fed cattle prices would be steady to slightly lower, prices surged higher on Friday. Through the afternoon, AMS was reporting live trade $1-$2 higher than the previous week in the Southern Plains and Nebraska at $118-$119/cwt. Late in the day, various sources were reporting live prices as high as $120 and dressed up to $190.
“It is difficult to determine which way live cattle prices are preparing to head,” says Andrew P. Griffith, agricultural economist at the University of Tennessee, in his weekly market comments. “A breakout to the upside or the downside would be a little surprising, so the expectation is that finished cattle will trade sideways during the holiday-shortened weeks. January will provide a little more direction.”
Live Cattle futures closed an average of $1.72 higher week to week on Friday (82¢ to $3.32 higher).
Choice boxed beef cutout value was $3.72 lower week to week on Friday at $201.87; Select was $2.72 lower at $183.25.
Griffith notes wholesale values are slipping into the winter trend earlier than normal.
Even so, packer demand for the week suggests feedlots are current and that packers intend to keep running hard after the holidays.
Friday to Friday Change*
Weekly Auction Receipts
|
Receipts Dec. 15 |
Auction (head) (Change) |
Direct (head) (Change) |
Video/net (head) (Change) |
Total (head) (Change) |
|
243,800 (-90,500) |
23,400 (+5,200) |
16,900 (+15,000) |
284,100 (-70,300) |
CME Feeder Index
| CME Feeder Index | Dec. 14 | Change |
| $154.40 | -0- |
*Thursday-to Thursday for CME Feeder Index
Cash Stocker and Feeder
North Central
| Steers-Cash | Dec. 15 | Change |
| 600-700 lbs. | $167.00 | – $2.94 |
| 700-800 lbs. | $160.61 | – $2.18 |
| 800-900 lbs. | $155.47 | + $2.30 |
South Central
| Steers-Cash | Dec. 15 | Change |
| 500-600 lbs. | $165.35 | – $2.17 |
| 600-700 lbs. | $155.00 | – $3.67 |
| 700-800 lbs. | $149.11 | – $7.08 |
| 800-900 lbs. | $147.11 | + $2.39 |
Southeast
| Steers-Cash | Dec. 15 | Change |
| 400-500 lbs. | $160.10 | + $4.44 |
| 500-600 lbs. | $152.35 | + $0.47 |
| 600-700 lbs. | $145.28 | + $5.08 |
(AMS National Weekly Feeder & Stocker Cattle Summary)
Wholesale Beef Value
| Boxed Beef (p.m.) | Dec. 15 ($/cwt) | Change |
| Choice | $201.87 | – $3.72 |
| Select | $183.25 | – $2.72 |
| Ch-Se Spread | $18.62 | – $1.00 |
Futures
| Feeder Cattle | Dec. 15 | Change |
| Jan ’18 | $147.750 | + $2.525 |
| Mar | $145.550 | + $2.225 |
| Apr | $145.925 | + $2.275 |
| May | $145.650 | + $1.925 |
| Aug | $148.050 | + $2.525 |
| Sep | $147.850 | + $2.775 |
| Oct | $147.050 | + $1.875 |
| Nov | $145.750 | + $0.650 |
| Live Cattle | Dec. 15 | Change |
| Dec | $118.900 | + $3.325 |
| Feb ’18 | $121.025 | + $2.725 |
| Apr | $122.150 | + $1.950 |
| Jun | $114.725 | + $1.625 |
| Aug | $111.400 | + $0.825 |
| Oct | $111.950 | + $1.050 |
| Dec | $113.775 | + $1.250 |
| Feb ’19 | $114.600 | + $1.275 |
| Apr | $114.500 | + $1.450 |
| Corn futures | Dec. 15 | Change |
| Mar ’18 | $3.474 | – $0.052 |
| May | $3.556 | – $0.054 |
| Jul | $3.642 | – $0.050 |
| Sep | $3.712 | – $0.052 |
| Dec | $3.800 | – $0.050 |
| Mar ’19 | $3.896 | – $0.050 |
| Oil CME-WTI | Dec. 15 | Change |
| Jan 18 | $57.30 | – $0.06 |
| Feb | $57.33 | – $0.11 |
| Mar | $57.24 | – $0.22 |
| Apr | $57.12 | – $0.34 |
| May | $56.97 | – $0.42 |
| June | $56.77 | – $0.46 |
Equities
| Equity Indexes | Dec. 15 | Change |
| Dow Industrial Average | 24561.74 | + 322.58 |
| NASDAQ | 6936.58 | + 96.50 |
| S&P 500 | 2675.81 | + 23.31 |
| Dollar (DXY) | 93.93 | + 0.03 |