Cattle Current Weekly Highlights—Week ending Nov. 27, 2020

Cattle Current Weekly Highlights—Week ending Nov. 27, 2020

Cattle futures bounced back last week, gaining back more than was lost the previous week, helped along by higher outside markets.

That started to show up in cash prices paid at late-week sales, keeping in mind receipts were significantly lower due to the holiday.

Feeder Cattle futures closed an average of $3.80 higher week to week on Friday, from $2.77 higher to $5.22 higher in spot Jan.

“Feeder markets are reflecting a mix of influences including seasonal supplies of calves, wheat pasture forage conditions, higher corn prices and volatility in futures markets,” explained Derrell Peel, Extension livestock marketing specialist at Oklahoma State University, in his weekly market comments. “Feeder markets have been very dynamic and it means that both cow-calf and stocker producers must constantly evaluate changing market conditions.”

For instance, Peel pointed to the currently steeper price rollback on calves lighter than 600 lbs. and the impact on value of gain. He gave the example of cow-calf producers selling calves at weaning, explaining recent prices mean the value of adding 50 lbs. to a 500-lb. steer is about 50¢/lb.

“For producers holding calves after weaning, the low value of gain must be balanced against the value of preconditioning programs and extra weaning time before sale,” Peel said. “The implications of current market conditions depend on the current weight of animals and the amount of additional weight added to animals prior to sale.”

Fed Cattle Prices Gain

Seasonal strength in wholesale beef values helped lift fed cattle prices last week.

Choice boxed beef cutout value was $4.50 higher week to week on Friday at $242.85/cwt. Select was $5.70 higher at $220.68.

The average dressed steer weight for the week ending Nov. 14 was 930 lbs., which was 6 lbs. heavier than the previous week and 18 lbs. heavier than the prior year. That’s according to the most recent Actual Slaughter Under Federal Inspection report from USDA. The average dressed heifer weight of 846 lbs. was the same as a week earlier but 5 lbs. heavier than the same week last year.

Negotiated cash fed cattle prices ended the week generally steady to $1 higher on a live basis and $2 higher in the beef, according to the Agricultural Marketing Service.

Live prices were at $111/cwt. in the Southern Plains, $110-$111 in Nebraska and $109-$110 in the western Corn Belt. Dressed trade was at $174.

Live Cattle futures closed an average of $2.17 higher week to week on Friday, from $1.32 higher toward the back to $2.70 higher.

“This year’s December Live Cattle contract closed at $111.25 on Friday, which was $9.05 lower than last year, while the February contract is $11.37 lower than last year,” explain AMS analysts.

Friday to Friday Change

Weekly Auction Receipts

 

Nov. 27 Auction Direct

Video/net

Total
 

112,300

(-209,600)

35,300

(-10,100)

1,600

(-8,200)

149,200

(-227,900)

 

 

CME Feeder Index

CME Feeder Index* Nov. 25 Change
  $136.90 –  $0.61

*Wednesday-to Wednesday for CME Feeder Index

 

Cash Stocker and Feeder

North Central

Steers-Cash Nov. 27 Change
600-700 lbs. $147.11 +  $0.60
700-800 lbs. $141.16 +  $0.01
800-900 lbs. $142.62 –   $0.09

 

South Central

Steers-Cash Nov. 27 Change
500-600 lbs. $149.50 –  $2.15
600-700 lbs. $141.40 + $0.49
700-800 lbs. $140.23 + $3.29

 

Southeast

Steers-Cash Nov. 27 Change
400-500 lbs. $146.59 –  $5.72
500-600 lbs. $136.73 –  $1.28
600-700 lbs. $129.80 + $1.20

(AMS National Weekly Feeder & Stocker Cattle Summary)

 

Wholesale Beef Value

Boxed Beef  (p.m.) Nov. 27 ($/cwt) Change
Choice $242.85 + $4.50
Select $220.68 + $5.70
Ch-Se Spread $22.17 –  $1.20

 

Futures

Feeder Cattle  Nov. 27 Change
Jan ’21 $139.825 + $5.225
Mar $139.000 + $4.625
Apr $140.325 + $4.150
May $141.225 + $3.775
Aug $146.200 + $2.775
Sep $146.450 + $3.200
Oct ’21 $146.350 + $3.150
Nov $146.600 + $3.475

 

Live Cattle   Nov. 27 Change
Dec $110.625 + $2.525
Feb ’21 $113.250 + $2.600
Apr $116.950 + $2.500
Jun $111.900 + $2.650
Aug $111.350 + $2.700
Oct $114.675 + $2.025
Dec $117.000 + $1.875
Feb ’22 $118.375 + $1.325
Apr $119.150 + $1.350

 

Corn  Nov. 27 Change
Dec $4.254 + $0.022
Mar ’21 $4.336 + $0.054
May $4.366 + $0.060
Jly $4.372 + $0.066
Sep $4.174 + $0.068
Oct $4.144 + $0.062

 

Oil CME-WTI Nov. 27 Change
Dec $45.53 + $3.11
Jan ’21 $45.74 + $3.10
Feb $45.91 + $3.07
Mar $46.01 + $2.99
Apr $46.06 + $2.91
May $46.07 + $2.80

 

Equities

Equity Indexes Nov. 27 Change
Dow Industrial Average  29910.37 +  646.89
NASDAQ  12205.85 +  350.88
S&P 500   3638.35 +     80.81
Dollar (DXY)       91.78 –         0.61
2020-11-29T11:47:18-05:00

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