Date: November 3rd, 2021
Yes it was Tuesday yesterday and by now we all know what that means, Turnaround Tuesday! Feeders with the biggest swings as triple digit lower and into new recent lows for all deferred contracts on Monday followed up but triple digit moves higher on Tuesday. Another way to look at feeders, Tuesday’s highs were over $6 higher from Monday’s lows. Live cattle also reversing higher yesterday and lean hogs reversing lower. Cash fed cattle trade starting this week on very light volume Monday in the WCB at $200 dressed, steady with a week ago. The pace picked up on Tuesday at $128 live in TX and KS and $130 live in NE, all $2 higher than a week ago.
Oklahoma National Stockyards Feeder Cattle – Oklahoma City, OK
Livestock Weighted Average Report for 11/1/2021
This Week: 8,003 Last Week: 7,966 Last Year: 2,661
Compared to last week: Feeder steers and heifers unevenly steady. Steer calves 2.00 – 4.00 lower. Heifer calves 3.00 – 5.00 higher. Demand moderate to good. Quality average to attractive.
Tulsa Livestock Auction – Tulsa, OK
Livestock Weighted Average Report for 11/1/2021
This Week: 4,036 Last Week: 4,137 Last Year: 2,115
Compared to last week: Steer calves sold 3.00-6.00 lower. Heifer calves steady to 3.00 lower. Demand moderate.
Joplin Regional Stockyards Feeder Cattle – Carthage, MO
Livestock Weighted Average Report for 11/1/2021
This Week: 6,563 Last Week: 4,196 Last Year: 2,910
Compared to last week feeder steers traded steady to 2.00 higher. A draft of 152 steers weighing 908 lbs. traded at $156.50. Feeder heifers traded steady to 3.00 higher. Supply moderate to heavy with good demand.
Ozarks Regional Stockyards Feeder Cattle – West Plains, MO
Livestock Weighted Average Report for 11/2/2021
This Week: 2,568 Last Week: 2,282 Last Year: 2,049
Compared to last week, steer and heifer calves traded unevenly steady from 4.00 lower to 4.00 higher. Demand was moderate on a moderate supply.
Miles City Livestock Commission Auction – Miles City, MT
Livestock Weighted Average Report for 11/2/2021
This Week: 4,725 Last Week: 5,177 Last Year: 5,490
Compared to last week: Yearling steers were too lightly tested to develop an market trend. Yearling heifers were very lightly tested, higher undertones were noticed. Demand for yearlings was moderate to good. Steer calves under 450 lbs sold mostly 5.00-10.00 lower, steers over 450 lbs sold mostly 4.00-8.00 higher. Heifer calves under 500 lbs sold 2.00-4.00 lower, heifers over 500 lbs sold 3.00-6.00 higher. Quality this week was average to attractive. Demand for calves was mostly moderate this week.
Philip Livestock Auction – Philip, SD
Livestock Weighted Average Report for 11/2/2021
This Week: 7,432 Last Week: Last Year:
Compared to last week: Feeder Steers 400 to 500 Steady to 4.00 higher, 500 to 600 6.00 to 8.00 higher, 600 to 650 2.00 to 4.00 lower, 650 to 700 2.00 higher, 700 to 750 2.00 lower, Feeder Heifers under 400 3.00 higher, 400 to 450 8.00 to 10.00 higher, 450 to 500 2.00 to 4.00 higher, 500 to 650 2.00 to 4.00 lower.
Cattle slaughter from Tuesday estimated at 122,000 head matching both last week and last year.
Hog slaughter from Tuesday estimated at 479,000 head, down 1,000 compared to week ago and down 12,000 compared to a year ago.
Boxed beef cutout values on Tuesday steady to higher on moderate to good demand with 114 loads sold.
Choice Cutout__287.38 -.20
Select Cutout__266.13 +1.74
CME Feeder Cattle Index__156.26 -.30
CME Lean Hog Index__79.04 -.12
Pork Carcass Cutout__94.21 +1.77
National Wtd Avg Carcass Base__60.98 -.05
December live cattle still holding a higher trend over this past month with support at $128 and resistance at $132. November feeders did not make a new recent low on Monday with support at $152 and resistance up around $162. The January contract did make a new low though breaking through the $153 support with the contract low the next at $148 and resistance at $158 then $159.50 with last month’s high up at $163.12. December lean hogs very choppy and trading roughly an $18 range since March with support from $71.80, last week’s low, to $71.27, the September low, and nearby resistance at $79.50.
Wheat and corn finished lower yesterday but both had inside trading days while soybeans, feeling left out in the cold on Monday, reversed higher to try and catch up on Tuesday. Fresh new contract highs again overnight for all three wheat varieties but a steady to lower finish for the day yesterday. Recent rains in Western Argentina couldn’t have come at a better time as recent hot and dry conditions were beginning to take a toll. The southern hemisphere weather has now taken the lead as the markets will keep an eye on both Argentina and Australia wheat conditions and South American corn and soy planting. Extended forecasts for both Argentina and Brazil have turned from below normal moisture to at least normal over the next couple weeks. Corn and soybeans traded places yesterday after corn made new recent highs to finish lower and soybeans still bumping their head on nearby resistance and very reluctant to try and push through over the past couple weeks.
Grains were fairly quiet overnight and steady to lower. Crude under pressure this morning, down over $2, as API data reporting the sixth consecutive week of inventory increases for both crude oil and distillate stocks. Corn and soybeans finished the overnight 1 to 2 lower while wheat was 4 to 7 lower.
Dry and warming temps for the rest of this week across most of the country. The 6-10 day outlook still showing normal to above normal temps for all except in the PNW with above normal moisture now across the majority of the U.S., below normal only in the Southwest and Northeast.
December corn breaking the long term lower trend and into a new recent high yesterday at $5.86 with the next upside price target at $5.94 ¼, the spike high back in August, support around $5.40. January soybeans still holding the long term lower trend with support at $12.40 then $12.25, last month’s new recent low at $11.95 ¾ and resistance holding around $12.60. December KC wheat hit a new contract high yesterday at $8.14 ½ with support around $7.60. December Chicago wheat a new contract high yesterday at $8.07 and support at $7.50. December MPLS wheat another new contract high as well yesterday at $10.86 ½ and support at $10.10. The next upside target is $11.20, the spot high from June 2011. December Soybean Meal breaking nearby resistance yesterday with the next up around $345 and support at $323.
Loewen and Associates, Inc.
Pete Loewen / Matt Hines / Doug Biswell
www.loewenassociates.com matt@loewenassociates.com
866-341-6700