Cash Cattle Lower Again; COF Higher
Cash cattle prices continued a steep November decline with trading $2 to $3 per cwt. lower for the week ending Nov. 18. Cash trades are $7 to $8 lower since the beginning of the month.
The North saw moderate trade volumes at $178 live, $2 to $3 lower, and $282 per cwt. dressed, which is $5 lower. The South traded at $178 per cwt., also $2 lower.
Feeder cattle sold $2 to $7 per cwt. lower and calves sold $3 to $7 per cwt. lower.
Cattle and feeder futures rebounded moderately Friday from Thursday’s big losses. December live cattle climbed $1.00 to $175.75, which represented a $1.575 weekly advance. January feeder futures also rallied $1.00 to $228.50 at Friday’s close, marking a weekly rise of $2.075.
Estimated weekly cattle slaughter was 636,000 head, down 36,000 head from the same week a year ago. The year-to-date total was estimated at 28.646 million head, down 4.7% from last year.
Wholesale beef prices closed the week mixed. Choice boxed beef traded at $293.87 per cwt. on Friday, down $6.59 for the week. Select closed Friday at $270.70 per cwt., $3.28 per cwt. higher for the week.
Cattle on Feed
USDA’s monthly Cattle on Feed (COF) report issued Friday found the number of cattle on feed in U.S. feedlots with 1,000 head capacity or more at 11.931 million head, 1.7% higher than the same month a year ago. That marked the second straight month of year-over-year increases in the feedlot inventory following a full year of declines.
October placements were 2.164 million head, 3.8% higher than last year. Marketings were 1.758 million head, 97.4% compared to the same month last year.
Placements increased from year-ago in all weight categories except heavyweights (1,000-plus lbs.), which were equal to last year and only accounted for 3.7% of the total number of cattle moved into feedlots last month. Placements increased 2.8% for lightweights (under 600 lbs.), 2.2% for 6-weights, 4.5% for 7-weights, 5.1% for 8-weights and 7.9% for 9-weights. Placements increased 30,000 head in Kansas and 25,000 head each in Nebraska and Colorado, while Texas was unchanged and “other states” declined 1,000 head from year-ago levels.
The report data was virtually inline with expectations, which should have little impact on prices Monday. A greater focus will be on the cash cattle market as traders watch to see if prices stabilize following recent weakness.
