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 |