Cattle markets continued to surprise plenty of folks with strength in both cash and futures.
Steers and heifers sold $2-$6/cwt. higher with instances of $9 higher, according to the Agricultural Marketing Service (AMS).
“Cattle feeders are anxious to refill pens after selling cattle at $125/cwt., $14 higher than just two short weeks ago,” said AMS analysts. “Old timers will recall fed cattle moving by leaps and bounds back in the fall of 2003 and they all remember that what goes up usually comes down.”
Of course, the fall of 2003 was a completely different situation, when Canada was locked out of the international beef marketplace due to BSE and before the U.S. followed suit in December. This time around, it appears that pure demand economics are behind the surge in prices and volume of trade.
“For the past three weeks, auction receipts averaged 316,000 head compared to 289,000 for the previous three-year average,” AMS analysts say.
Feeder Cattle futures closed an average of $5.05 higher week to week on Friday ($3.62 to $5.57 higher).
Cash fed cattle sales for the week were a staggering $4-$9 higher on a live basis at mostly $125/cwt. ($120-$122 in the western Corn Belt. Dressed trade was $7-$12 higher at mostly $192.
Live Cattle futures closed an average of $4.29 higher week to week on Friday ($2.77 to $6.47 higher).
Choice boxed beef cutout value was $5.44 higher week to week on Friday at $208.74/cwt. Select was 60¢ higher at $193.08.
“Boxed beef prices continue to rise going into fall and analysts are suggesting that out-front meat sales are at higher prices,” AMS analysts say.
Domestic and international beef demand continues to underpin markets.
“The supply of red meat will continue to grow, so in order to benefit our industry we are going to need to export more product, and we fully expect to be able to do that,” said Pat Binger, head of international sales for Cargill Protein Group. He is the new secretary-treasurer for the U.S. Meat Export Federation (USMEF) and made the remarks at the organization’s strategic planning conference last week.
Friday to Friday Change*
Weekly Auction Receipts
|
Receipts Nov. 3 |
Auction (head) (Change) |
Direct (head) (Change) |
Video/net (head) (Change) |
Total (head) (Change) |
|
331,900 (+22,100) |
51,200 (+13,300) |
18,200 (+8,300) |
401,300 (+43,700) |
CME Feeder Index
| CME Feeder Index | Nov. 2 | Change |
| $159.23 | + $4.11 |
*Thursday-to Thursday for CME Feeder Index
Cash Stocker and Feeder
North Central
| Steers-Cash | Nov. 3 | Change |
| 600-700 lbs. | $159.29 | – $8.45 |
| 700-800 lbs. | $165.32 | + $2.59 |
| 800-900 lbs. | $163.93 | + $4.76 |
South Central
| Steers-Cash | Nov. 3 | Change |
| 500-600 lbs. | $166.80 | + $4.64 |
| 600-700 lbs. | $161.03 | + $4.81 |
| 700-800 lbs. | $159.59 | + $3.48 |
| 800-900 lbs. | $157.65 | + $3.37 |
Southeast
| Steers-Cash | Nov. 3 | Change |
| 400-500 lbs. | $158.64 | + $2.31 |
| 500-600 lbs. | $149.64 | + $1.45 |
| 600-700 lbs. | $142.31 | + $1.15 |
(AMS National Weekly Feeder & Stocker Cattle Summary)
Wholesale Beef Value
| Boxed Beef (p.m.) | Nov. 3 ($/cwt) | Change |
| Choice | $208.74 | + $5.44 |
| Select | $193.08 | + $0.60 |
| Ch-Se Spread | $15.66 | + $4.84 |
Futures
| Feeder Cattle | Nov. 3 | Change |
| Nov | $160.875 | + $4.400 |
| Jan ’18 | $161.525 | + $5.575 |
| Mar | $158.350 | + $5.350 |
| Apr | $158.225 | + $5.325 |
| May | $157.300 | + $5.400 |
| Aug | $158.800 | + $5.550 |
| Sep | $157.275 | + $5.150 |
| Oct | $155.100 | + $3.625 |
| Live Cattle | Nov. 3 | Change |
| Dec | $127.300 | + $6.475 |
| Feb ’18 | $131.750 | + $6.000 |
| Apr | $129.800 | + $4.775 |
| Jun | $121.175 | + $4.100 |
| Aug | $117.400 | + $3.250 |
| Oct | $117.175 | + $2.775 |
| Dec | $118.375 | + $3.200 |
| Feb ’19 | $118.725 | + $3.775 |
| Apr | $117.075 | n/a |
| Corn futures | Nov. 3 | Change |
| Dec | $3.482 | – $0.004 |
| Mar ’18 | $3.620 | – $0.004 |
| May | $3.706 | – $0.006 |
| Jul | $3.782 | – $0.004 |
| Sep | $3.844 | – $0.010 |
| Dec | $3.934 | – $0.010 |
| Oil CME-WTI | Nov. 3 | Change |
| Dec | $55.64 | + $1.74 |
| Jan 18 | $55.86 | + $1.77 |
| Feb | $55.98 | + $1.80 |
| Mar | $56.02 | + $1.81 |
| Apr | $55.96 | + $1.76 |
| May | $55.81 | + $1.68 |
Equities
| Equity Indexes | Nov. 3 | Change |
| Dow Industrial Average | 23539.19 | + 105.00 |
| NASDAQ | 6764.44 | + 63.18 |
| S&P 500 | 2587.84 | + 6.77 |
| Dollar (DXY) | 94.91 | + 0.11 |