Date: October 14th, 2021
A massive commodity selloff yesterday with only soybean oil, canola and cotton futures able to hold gains. Cattle futures mostly triple digits lower with nearby live cattle gaining back some into the close. Light cash feedlot trade Tuesday steady with last week in the WCB at $122 live and for the TX Cash Pool at $124.15. More volume on Wednesday, again steady with a week ago at $124 live in TX and KS, a few up to $124.50. NE trade picked up as well at $124 live, a few up to $125, mostly $2 higher and $196 dressed which is steady with last week. Lean hogs traded a tight range with small losses. The nearby October contract expires today as most deferred contracts continue to close the gap higher move last month.
La Junta Livestock Commision – La Junta, CO
Livestock Weighted Average Report for 10/13/2021
This Week: 3,421 Last Week: 2,171 Last Year:
Compared with last Wednesday: Steer calves uneven, 300 to 400 lbs 5.00 higher, 400 to 500 lbs 2.00 to 4.00 lower, over 500 lbs steady to 2.00 higher. Heifer calves under 600 lbs 2.00 to 3.00 higher, 600 to 700 lbs 3.00 to 5.00 higher. Yearling feeder steers and heifers over 700 lbs too lightly tested last week for a comparison. Slaughter cows 2.00 to 3.00 lower. Slaughter bulls steady to 1.00 lower. Trade and demand moderate to good.
Winter Livestock – Dodge City, KS
Livestock Weighted Average Report for 10/13/2021
This Week: 3,414 Last Week: 2,957 Last Year: 2,411
Compared to last week, feeder steers 700 lb to 975 lb sold unevenly steady. Steer calves 400 lb to 700 lb sold 2.00 to 5.00 higher with most advance on weaned fancy calves. Feeder heifers 800 lb to 950 lb sold 2.00 higher. Heifers 600 lb to 800 lb sold steady to 2.00 lower. Heifers weighing 500 lb to 600 lb sold 2.00 higher. Heifer calves 300 lb to 500 lb sold 2.00 to 3.00 lower. Demand was moderate.
Southern Oklahoma Livestock Auction Feeder Cattle- Ada, OK
Livestock Weighted Average Report for 10/13/2021
This Week: 1,573 Last Week: 2,015 Last Year: 2,082
Compared to last week: Feeder steers unevenly steady. Feeder heifers 1.00 – 3.00 lower. Steer calves unevenly steady. Heifer calves 6.00 – 8.00 lower. Demand moderate to good.
Hub City Livestock Auction – Aberdeen, SD
Livestock Weighted Average Report for 10/13/2021
This Week: 3,743 Last Week: 4,444 Last Year: 6,138
Compared to last week: best test on steers 900 to 1000 lbs and heifers 850 to 900 lbs steady. Calves too lightly tested today for comparison. Good to very good demand for many strings, loads, and packages of yearlings.
Torrington Livestock Feeder Cattle Auction – Torrington, WY
Livestock Weighted Average Report for 10/13/2021
This Week: 2,602 Last Week: 3,879 Last Year: 4,202
Compared to last week; yearling steers traded unevenly steady with the exception of a 750 lb steer trading 5.00 higher. Steer calves traded 2.00 to 4.00 higher on comparable trades to last week. Yearling heifers and heifer calves traded mostly steady to last week.
Bassett Livestock Auction – Bassett, NE
Livestock Weighted Average Report for 10/13/2021
This Week: 4,290 Last Week: 4,155 Last Year: 3,795
A limited number of comparable offerings from last week with 850 to 950 lbs steers traded steady to 4.00 lower and 850 lbs spayed heifers traded 2.00 higher. Demand was good with several buyers and high internet bidding.
Cattle slaughter from Wednesday estimated at 120,000 head, down 1,000 from last week and from last year. Hog slaughter from Wednesday estimated at 478,000 head, matching a week ago but down 13,000 compared to a year ago. Week to date now 2,000 head lower for cattle but 14,000 head higher for hogs compared to last week.
Boxed beef cutout values on Wednesday lower on strong demand with 171 loads sold.
Choice Cutout__280.02 -1.05
Select Cutout__258.70 -2.65
CME Feeder Cattle Index__154.26 +.11
CME Lean Hog Index__89.73 -1.21
Pork Carcass Cutout__104.85 +2.47
National Wtd Avg Carcass Base__68.18 -.93
October live cattle tested resistance just shy of $126 earlier this week, but unable to push through, support at $123. Only a couple weeks left until expiration and cash still right at $124. The highest volume December contract pushed through $130 for a new recent high with resistance at $131 and strong support from $124 to $125. October feeders also rebounding this past week from new 4-month lows to start the month hitting resistance just above $160 and nearby support around $157. October lean hogs expire today. The December contract has trading an $18 range since March with nearby resistance at $82.80 then $85.65 and support around $71.50.
Soybeans led the charge lower into new lows but matched the spike low from last March and reversed higher to finish the day with only mild losses. Wheat rolled lower mid-morning but could not recover at least for KC and Chicago. Corn down another dime but still holding above the $5 barrier. We actually had friendly news prior to the markets opening yesterday morning with soybean sales to China and unknown along with corn sales for unknown destinations.
Overnight, grains stabilized and traded mostly in positive territory. Energies higher and the US$ lower supportive to start the day along with equites pointing higher. Corn finished the overnight 2 to 3 higher, soybeans 6 higher and wheat 4 to 8 higher.
News light overnight. Weekly export sales delayed until tomorrow morning along with an update on domestic soybean crush. The NOPA monthly report, which represents about 95% of all the soybeans processed in the U.S., is expected to show crush down to a 3-month low at 155.07 MBU of soybeans processed in September. August crush was at 158.84 MBU and last September was 161.49 MBU. Another daily sale announced this morning by USDA for 132,000 MT or 4.85 MBU of soybeans sold for unknown destinations.
Scattered rains continue this week in the Southern Plains and another couple inches expected across the Corn Belt but weather opens back up for fall harvest heading into the weekend and next week. The 6-10 day outlook showing normal to above normal temps across the entire country now with below normal precipitation for all expect on the West Coast, Florida and a small pocket in the Southwest. The 6-10 day outlook for South America showing in general below normal precipitation for southern Brazil and Argentina with normal temperatures.
December corn still holding the long term lower trend with nearby support taken out on Tuesday, the next down around the $5 level and resistance at $5.34 then $5.48. November soybeans also holding the lower trend with new 6-month lows again yesterday but hitting support at $11.84, the March lows with resistance around $12.50. December KC wheat holding a higher trend since early July but a lower trend so far this month now testing support around $7.15. December Chicago wheat also a long term higher trend being tested around $7.12 and a short term lower trend this month. December MPLS wheat a new contract high on Tuesday at $9.60 with nearby support at $9.20. December Soybean Meal a new 12-month low yesterday at $309.3 with resistance at $325.
Loewen and Associates, Inc.
Pete Loewen / Matt Hines / Doug Biswell
www.loewenassociates.com matt@loewenassociates.com
866-341-6700