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**
|
Receipts Dec. 22 |
Auction (head) (Change) |
Direct (head) (Change) |
Video/net (head) (Change) |
Total (head) (Change) |
|
133,600 (-110,200) |
22,200 (+1,200) |
1,200 (-15,700) |
157,000 (-127,100) |
CME Feeder Index
| CME Feeder Index | Dec. 28 | Change |
| $146.51 | -3.41 |
*Thursday-to Thursday for CME Feeder Index
Cash Stocker and Feeder
**Last Available**
North Central
| Steers-Cash | Dec. 22 | Change |
| 600-700 lbs. | $167.26 | + $0.26 |
| 700-800 lbs. | $162.31 | + $1.70 |
| 800-900 lbs. | $154.08 | – $1.39 |
South Central
| Steers-Cash | Dec. 22 | Change |
| 500-600 lbs. | $163.93 | – $1.42 |
| 600-700 lbs. | $153.58 | – $1.42 |
| 700-800 lbs. | $149.05 | – $0.06 |
Southeast
| Steers-Cash | Dec. 22 | Change |
| 400-500 lbs. | $160.69 | + $0.59 |
| 500-600 lbs. | $151.41 | – $0.94 |
| 600-700 lbs. | $141.62 | – $3.66 |
(AMS National Weekly Feeder & Stocker Cattle Summary)
Wholesale Beef Value
| Boxed Beef (p.m.) | Dec. 29 ($/cwt) | Change |
| Choice | $202.90 | + $3.32 |
| Select | $192.98 | + $5.10 |
| Ch-Se Spread | $9.92 | – $1.76 |
Futures
| Feeder Cattle | Dec. 29 | Change |
| Jan ’18 | $146.000 | + $4.450 |
| Mar | $142.675 | + $4.125 |
| Apr | $143.075 | + $3.625 |
| May | $142.675 | + $3.325 |
| Aug | $146.625 | + $3.925 |
| Sep | $146.600 | + $3.925 |
| Oct | $146.350 | + $4.475 |
| Nov | $144.050 | + $2.500 |
| Live Cattle | Dec. 29 | Change |
| Dec | $123.000 | + $3.175 |
| Feb ’18 | $121.550 | + $2.975 |
| Apr | $122.425 | + $3.150 |
| Jun | $113.650 | + $2.500 |
| Aug | $110.500 | + $2.350 |
| Oct | $111.525 | + $2.450 |
| Dec | $113.875 | + $2.925 |
| Feb ’19 | $114.875 | + $2.650 |
| Apr | $114.775 | + $2.175 |
| Corn futures | Dec. 29 | Change |
| Mar ’18 | $3.506 | – $0.014 |
| May | $3.590 | – $0.014 |
| Jul | $3.672 | – $0.014 |
| Sep | $3.746 | – $0.014 |
| Dec | $3.840 | – $0.004 |
| Mar ’19 | $3.932 | – $0.008 |
| Oil CME-WTI | Dec. 29 | Change |
| Feb | $60.42 | + $1.95 |
| Mar | $60.44 | + $1.90 |
| Apr | $60.40 | + $1.86 |
| May | $60.27 | + $1.79 |
| Jun | $60.06 | + $1.72 |
| Jul | $59.76 | + $1.64 |
Equities
| Equity Indexes | Dec. 29 | Change |
| Dow Industrial Average | 24719.22 | – 34.84 |
| NASDAQ | 6903.39 | – 56.57 |
| S&P 500 | 2673.61 | – 9.73 |
| Dollar (DXY) | 92.29 | – 1.03 |