Calves and feeder cattle sold $2 lower to $2 higher, according to the Agricultural Marketing Service (AMS), amid increased auction volume as the fall run picked up steam.
“Auction receipts were the largest since January,” said AMS analysts. “Several auctions in South Dakota had two sales this week to accommodate producers willing to sell cattle and the state accounted for over 18% of the auction receipts.”
The lack of trucks stalled demand in some areas. As the AMS reporter on hand for Thursday’s sale at Billings Livestock Commission in Montana explained, “Transportation continues to be an issue as trucks are tight with many contract calves moving in the country. Buyers are reluctant to purchase calves they do not have immediate transportation for as heath concerns snowball the longer calves are under stress.”
As for demand, Derrell Peel, Extension livestock marketing specialist at Oklahoma State University pointed out in his early-week market comments, “Stocker budgets for winter grazing still look quite favorable, unless grazing delays stretch out too long and cut days available for winter grazing down excessively.”
Not counting expiring October or newly minted away October, Feeder Cattle futures closed an average of 88¢ higher week to week on Friday.
Fed Cattle Mostly $3-$4 Higher
Negotiated cash fed cattle prices finally busted from the steady trench of recent weeks, gaining $3-$4 on a live basis in most regions at $114-$115/cwt—$2-$3 higher in the western Corn Belt at $112-$113. Dressed sales were $6 higher at $180.
Week to week on Friday, Live Cattle futures closed an average of $1.49 higher.
“Cattle slaughter continues along at a pretty good clip that packers have found to be advantageous to their bottom line,” according to AMS analysts. “Packer margins have been on the positive side for many months now, and they have done an excellent job of managing their inventory since Labor Day. Steer dressed weights for the week ending Oct. 13 were 899 lbs., 4 lbs. below the previous week. Muddy pen conditions and lower temperatures nationwide the first week in October were contributing factors in the drop in weights.”
Fed cattle prices gained support from the seasonal boost to wholesale beef values.
Week to week, Choice boxed beef cutout value was $5.54 higher Friday afternoon at $213.47/cwt. Select was $4.59 higher at $198.83.
In his weekly market comments, Andrew P. Griffith, agricultural economist at the University of Tennessee explains middle meats are driving the increase in wholesale beef values.
“Middle meat purchases in October are generally due to entities preparing for the holiday season and trying to purchase inventory before rib and loin prices reach their apex,” Griffith says. “Thus, restaurants and retailers are trying to avoid being short bought and forced in to high-priced spot market purchases. At the same time, this purchasing habit generally leads to increases of beef in cold storage which generally peaks in the fourth quarter.”
Friday to Friday Change*
Weekly Auction Receipts
|
Receipts Oct. 26 |
Auction (head) (Change) |
Direct (head) (Change) |
Video/net (head) (Change) |
Total (head) (Change) |
|
357,700 (+87,400) |
57,600 (+32,200) |
16,500 (-11,200) |
431,800 (+108,400) |
CME Feeder Index
| CME Feeder Index | Oct. 25 | Change |
| $154.01 | – $1.35 |
*Thursday-to Thursday for CME Feeder Index
Cash Stocker and Feeder
North Central
| Steers-Cash | Oct. 26 | Change |
| 600-700 lbs. | $162.33 | + $2.54 |
| 700-800 lbs. | $158.34 | – $1.45 |
| 800-900 lbs. | $156.14 | – $0.59 |
South Central
| Steers-Cash | Oct. 26 | Change |
| 500-600 lbs. | $161.16 | + $0.91 |
| 600-700 lbs. | $155.40 | + $0.03 |
| 700-800 lbs. | $154.87 | + $0.11 |
Southeast
| Steers-Cash | Oct. 26 | Change |
| 400-500 lbs. | $155.05 | – $1.83 |
| 500-600 lbs. | $147.30 | – $0.24 |
| 600-700 lbs. | $140.29 | + $0.97 |
(AMS National Weekly Feeder & Stocker Cattle Summary)
Wholesale Beef Value
| Boxed Beef (p.m.) | Oct. 26 ($/cwt) | Change |
| Choice | $213.47 | + $5.54 |
| Select | $198.83 | + $4.59 |
| Ch-Se Spread | $14.64 | + $0.95 |
Futures
| Feeder Cattle | Oct. 26 | Change |
| Nov | $154.800 | + $0.700 |
| Jan ’19 | $149.700 | + $0.950 |
| Mar | $147.825 | + $0.775 |
| Apr | $149.325 | + $1.050 |
| May | $150.000 | + $1.225 |
| Aug | $152.925 | + $0.875 |
| Sep | $152.425 | + $0.625 |
| Oct | $151.925 | n/a |
| Live Cattle | Oct. 26 | Change |
| Oct | $113.875 | + $1.625 |
| Dec | $118.400 | + $1.625 |
| Feb ’19 | $123.450 | + $2.300 |
| Apr | $124.175 | + $2.000 |
| Jun | $116.050 | + $1.525 |
| Aug | $113.625 | + $1.200 |
| Oct | $114.725 | + $1.025 |
| Dec | $116.150 | + $1.050 |
| Feb ’20 | $117.500 | + $1.100 |
| Corn futures | Oct. 26 | Change |
| Dec | $3.676 | + $0.006 |
| Mar ’19 | $3.800 | + $0.006 |
| May | $3.880 | + $0.010 |
| Jul | $3.936 | + $0.010 |
| Sep | $3.960 | + $0.016 |
| Dec | $4.024 | + $0.024 |
| Oil CME-WTI | Oct. 26 | Change |
| Nov | $67.59 | – $1.69 |
| Dec | $67.75 | – $1.60 |
| Jan ’19 | $67.84 | – $1.55 |
| Feb | $67.93 | – $1.50 |
| Mar | $68.01 | – $1.45 |
| Apr | $68.05 | – $1.41 |
Equities
| Equity Indexes | Oct. 26 | Change |
| Dow Industrial Average | 24688.31 | – 756.03 |
| NASDAQ | 7167.21 | – 281.82 |
| S&P 500 | 2658.69 | – 109.09 |
| Dollar (DXY) | 96.41 | + 0.74 |