Cattle Current Weekly Highlights—Week ending Nov. 1, 2019

Cattle Current Weekly Highlights—Week ending Nov. 1, 2019

Stronger futures prices helped push cash calf and feeder cattle prices mainly steady to higher.

Yearling steers and heifers sold steady to $3 higher, while calves traded steady to $2 higher, according to the Agricultural Marketing Service (AMS).

“Long-time weaned calves with full rounds of preconditioning vaccinations sold on good demand, creating wide price spreads compared to calves with partial vaccinations,” according to AMS analysts. Between unseasonably cold temperatures and wintry weather in various parts of the country, they note that auction receipts were lighter than normal for the fall run.

Feeder Cattle futures closed an average of $4.22 higher week to week on Friday. The CME Feeder Cattle Index was $1.25 higher week to week on Thursday at $145.98, the highest since April.

“Cattle ready to go on feed have been rejuvenated by stronger live cattle futures, which have spurred feeder cattle futures,” explains Andrew P. Griffith, agricultural economist at the University of Tennessee, in his weekly market comments. “The November feeder cattle contract price has increased more than $8/cwt. since the first day of October, which has resulted in a very similar increase in load-lot cattle being marketed through Tennessee auctions.”

Fed Cattle Prices Gain

Negotiated cash fed cattle trade remained undeveloped in the North through Friday afternoon, based on USDA reports. Although there were too few transactions to trend, a few live sales in the western Corn Belt were at $112-$114/cwt. and a few dressed sales in Nebraska were at $180. Compared to the previous week, that was $2-$4 higher on a live basis and $5 higher in the beef.

Live Cattle futures closed an average of $2.66 higher week to week on Friday.

Griffith points out the December Live Cattle contract is $19 higher than its low Sept. 9.

“Futures prices have live cattle moving higher before the end of the year, with further gains heading into late winter and early spring,” Griffith explains. “The market is beginning to take off, but it is difficult to determine what all is driving this uptick. With little information to support surging prices, now is the time to take advantage of hedging opportunities, especially with the strong premium in futures compared to cash.”

Wholesale beef values continue to sell higher year over year. Choice boxed beef cutout value was $7.76 higher week to week on Friday at $233.20/cwt. Select was $7.67 higher at $207.51.

Choice boxed beef cutout value was $233.20/cwt. Friday, the highest since August—about a week after the Tyson fire. That was $14.65 more (+6.7%) than a year earlier. At $207.52 on Friday, Select was $3.27 more (+1.6%) more. The Choice-Select spread was 79.6% higher (+$11.39) at $25.69.

Friday to Friday Change*

Weekly Auction Receipts

Receipts

# head

Nov. 1

Auction 

(change)

Direct 

(change)

Video/Net 

(change)

Total 

(change)

 

274,600

(-15,600)

49,000

(+15,300)

2,000

(-30,700)

325,600

(-31,000)

 

CME Feeder Index

CME Feeder Index* Oct. 31 Change
  $145.98 +  $1.25

*Thursday-to Thursday for CME Feeder Index

 

Cash Stocker and Feeder

North Central

Steers-Cash Nov. 1 Change
600-700 lbs. $151.85 + $1.81
700-800 lbs. $150.09 + $2.11
800-900 lbs. $150.07 + $3.28

 

South Central

Steers-Cash Nov. 1 Change
500-600 lbs. $149.41 + $1.29
600-700 lbs. $147.23 + $3.00
700-800 lbs. $144.46 –  $0.34

 

Southeast

Steers-Cash Nov. 1 Change
400-500 lbs. $138.95 –  $0.63
500-600 lbs. $132.32 –  $1.35
600-700 lbs. $129.38 + $0.40

(AMS National Weekly Feeder & Stocker Cattle Summary)

 

Wholesale Beef Value

Boxed Beef  (p.m.) Nov. 1 ($/cwt) Change
Choice $233.20 + $7.76
Select $207.51 + $7.67
Ch-Se Spread $25.69 + $0.09

 

Futures

Feeder Cattle  Nov. 1 Change
Nov $149.125 + $3.750
Jan ’20 $146.000 + $4.400
Mar $145.125 + $4.375
Apr $146.400 + $4.150
May $147.175 + $3.675
Aug $151.700 + $4.175
Sep $151.950 + $5.050
Oct $148.600 n/a

 

Live Cattle   Nov. 1 Change
Dec $119.525 +$3.450
Feb ’20 $124.225 +$3.150
Apr $125.450 +$2.850
Jun $117.750 +$2.875
Aug $115.300 +$2.525
Oct $116.275 +$2.250
Dec $118.725 +$2.200
Feb ’21 $120.075 +$2.000
Apr $120.275 n/a

 

Corn futures Nov. 1 Change
Dec $3.892 +$0.026
Mar ’20 $3.984 +$0.010
May $4.044 +$0.004
Jul $4.100 +$0.004
Sep $4.024 – $0.010
Dec $4.056 – $0.020

 

Oil CME-WTI Nov. 1 Change
Dec $56.20 –  $0.46
Jan ’20 $56.27 –  $0.44
Feb $56.15 –  $0.44
Mar $55.86 –  $0.46
Apr $55.54 –  $0.41
May $55.20 –  $0.35

 

Equities

Equity Indexes Nov. 1 Change
Dow Industrial Average  27346.36 + 389.30
NASDAQ   8386.40 + 143.28
S&P 500    3066.91 +   44.36
Dollar (DXY)        97.12 –      0.71
2019-11-03T11:11:48-06:00

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