Date: December 8th, 2020
Livestock futures started the week triple digits lower. Live cattle traders somewhat disappointed in last week’s results as steady to higher cash feedlot trade developed early but faded to lower trade by the end of week. The pullback in beef prices not helping support higher prices for cattle either. Beef prices rallied $35 in November though with very small improvements in cash feedlot trade.
Joplin Regional Stockyards Feeder Cattle – Carthage, MO
Livestock Weighted Average Report for 12/7/2020
Total Receipts: 10,277 Last Week: 9,399 Last Year: 11,973
Compared to last Monday’s sale, steers under 700 lbs steady, except bawling calves over 500 lbs 2.00 to 3.00 lower, steers over 700 lbs 2.00 to 4.00 lower, heifers 1.00 to 3.00 lower, except under 400 lbs steady. Demand moderate to good, supply heavy. Demand best for calves to graze this winter and next summer.
Oklahoma National Stockyards Feeder Cattle – Oklahoma City, OK
Livestock Weighted Average Report for 12/7/2020
Total Receipts: 18,000 Last Week: 10,159 Last Year: 14,809
Compared to last week: Feeder steers and heifers closing mostly steady to 2.00 lower. Steer calves steady to 4.00 higher. Heifer calves mostly steady. Demand moderate to good. Today’s sale includes about 3,000 head for the Oklahoma Angus influenced Special. These cattle are all at least 60 days weaned and have been documented herd health with at least 2 rounds of vaccinations.
Tulsa Livestock Auction – Tulsa, OK
Livestock Weighted Average Report for 12/7/2020
Total Receipts: 4,692 Last Week: Last Year:
Compared to last week: Steers 6.00-8.00 higher. Heifers 5.00-7.00 higher. Demand good. Quality plain thru attractive. A reminder: December 14th will be our last sale for 2020. Our next sale will be Jan 4, 2021. Slaughter cows 1.00-3.00 higher. Slaughter bulls 4.00 higher.
Cattle slaughter from Monday estimated at 117,000 head, up 2,000 from last week but down 5,000 from last year. Hog slaughter from Monday estimated at 491,000 head, up 11,000 compared to last week and up 3,000 compared to a year ago.
Boxed beef cutout values sharply lower on Monday with 161 loads sold.
Choice Cutout__230.80 -4.22
Select Cutout__209.48 -8.03
CME Feeder Cattle Index__138.28 -.90
CME Lean Hog Index__65.77 -.49
Pork Carcass Cutout__77.90 -.27
IA-S.MN Wtd Avg Carcass Base__56.60 +1.55
National Wtd Avg Carcass Base__55.37 +.06
December live cattle holding a lower trend since mid-August with support tested at $108 and resistance around $110, convergence of all the major moving averages. January feeders holding a higher trend since mid-October but still unable to test above the $145 area since August with support around $135. December lean hogs still choppy with support around $64 and resistance at $68.
Grains were mixed to start this week. All started under heavy pressure as South American forecasts were improved and showing ample chances for moisture this week. Grains flipped into the green midday as those forecasts weakened and as China again showing interest in U.S. Ag products.
Export inspections for the week ending December 3rd were in line or exceeding expectations. Soybeans inspections continue to lead the way with 84.4 MBU this past week bringing YTD to 1.081 BBU which is already 49% of the current USDA export estimate for the year. Wheat inspections were also above the weekly average needed at 19.5 MBU. Corn inspections remain under the average needed with 28.9 MBU inspected for export. China came in first for both soybeans and corn and third highest for wheat destination.
Overnight, grain markets in the red again with corn finishing the overnight 1 to 2 lower, soybeans 5 to 9 lower and wheat 1 to 4 lower. Outside markets are weaker as well with equities and energies both lower this morning.
No daily sales announcement so far this week but it is believed that South Korea has purchased a couple cargoes of U.S. Corn.
U.S. weather continues to be fairly mild this week. The 6-10 day outlook showing normal to above normal temps for the entire country with above normal moisture in the PNW, across the Northern Border States and for the eastern third and below normal moisture for the Southwest and Southern Plains.
March corn hit a new contract high last week at $4.39 ½ with resistance from the continuous weekly chart next at $4.50 and support at $4.13 ½ then $4.08 ¾. January soybeans contract high was hit November 23rd right at the $12 mark, with nearby support at $11.38. March KC wheat breaking support this past week with support next at $5.28. March Chicago wheat trending lower since mid-October with support next around $5.50. January Soybean Meal with a contract high at $401.30 on November 25th yet trending lower since and support around $370.