Date: November 24th, 2021
Cattle futures continued to rally yesterday as both live cattle and feeders hit new recent highs. So far this week, light cash trade at $136 in the South which is $3 higher than last week and helping fuel the futures rally. Liquidation continues with some of the highest weekly cow and heifer slaughter numbers compared to past 10 years over past few weeks.
Oklahoma National Stockyards Feeder Cattle – Oklahoma City, OK
Livestock Weighted Average Report for 11/22/2021
This Week: 9,605 Last Week: 13,380 Last Year: 10,094
Compared to last week: Feeder steers and heifers 2.00 – 4.00 higher, with instances to 10.00 higher. Steer and heifer calves 6.00 – 10.00 higher. Demand moderate to good. Demand very good for calves. Quality average to attractive.
Tulsa Livestock Auction – Tulsa, OK
Livestock Weighted Average Report for 11/22/2021
This Week: 3,329 Last Week: 4,917 Last Year: 2,832
Compared to last week: Steers 5.00-7.00 higher. Heifers 6.00-9.00 higher. Value added steers 4.00-6.00 higher. Value added Heifers 10.00- 12.00 higher. Demand good. Quality plain thru attractive. Slaughter cows 2.00-3.00 higher. Slaughter bulls mostly steady to 1.00 higher.
Joplin Regional Stockyards Feeder Cattle – Carthage, MO
Livestock Weighted Average Report for 11/22/2021
This Week: 12,811 Last Week: 7,643 Last Year: 10,922
Compared to last week feeder steers traded 3.00-7.00 higher. Feeder heifers traded 3.00-5.00 higher. The offering consisted of several thousand high quality cattle.
Ozarks Regional Stockyards Feeder Cattle – West Plains, MO
Livestock Weighted Average Report for 11/23/2021
This Week: 1,485 Last Week: 3,460 Last Year: 2,245
Compared to last week, steer and heifer calves traded 2.00-4.00 higher with spots 8.00 higher with most weights not well tested. Demand was good on a light supply which was affected by the upcoming holiday.
Miles City Livestock Commission Auction – Miles City, MT
Livestock Weighted Average Report for 11/23/2021
This Week: 1,558 Last Week: 3,217 Last Year: 2,542
Compared to last week: Steer calves all sold 5.00-10.00 higher in a narrow comparison. Heifers under 550 lbs sold mostly 5.00 higher, heifers over 550 lbs sold steady to 5.00 higher in a narrow comparison. Quality this week was average to attractive.
Cattle slaughter from Tuesday estimated at 122,000 head, matching last week and up 1,000 from last year. Hog slaughter from Tuesday estimated at 480,000 head, down 4,000 compared to a week ago and down 16,000 compared to a year ago.
Boxed beef cutout values on Tuesday lower on very strong demand with 193 loads sold.
Choice Cutout__278.64 -.61
Select Cutout__262.67 -1.06
CME Feeder Cattle Index__157.43 +1.14
CME Lean Hog Index__73.15 +.27
Pork Carcass Cutout__84.92 -1.33
National Wtd Avg Carcass Base__55.41 +.50
December live cattle holding the higher trend since the 1st of October and again into a new 3-month high yesterday with support around $132 and resistance next the contract high at $138.22. January feeders breaking nearby resistance yesterday and into a new 2-month high with support at $160 and resistance next up at $168 with the contract high at $172. December lean hogs remain choppy and trading around a $9 range over the past month+ with support at $71.70 and resistance at $79.50.
Over in the grains, wheat again the leader higher yesterday on quality concerns in Australia due to heavy rains, the Canadian shipping delays and continued political and export issues for the Black Sea shippers. Crop conditions here in the U.S. remain close to in line with a year ago but we could all use some moisture in the near term. Corn near highs from the first of the month as soybeans are chopping sideways over the past week.
Grains mixed overnight with corn finishing 1 to 3 higher, soybeans 2 to 3 higher and wheat 5 lower to 3 higher. Volume could be thin today as the markets are closed tomorrow for Thanksgiving and back open again for Friday until 12:05. December options expire on Friday as well with first notice day for futures next Tuesday the 30th.
South Korea booked a couple cargoes of optional origin corn overnight, most likely to come from South America. USDA announcing daily export sales this morning with 330,000 MT or 12.1 MBU of soybeans for delivery to unknown destinations and 100,000 MT or 3.9 MBU of corn for delivery to Mexico.
Forecasted rains over this next week continue to show heavy amounts in the PNW with light rains expected over the eastern half of the U.S. The 6-10 day outlook showing above normal temps for the western half of the country and below normal on the east coast with above normal moisture for the PNW and below normal stretching from the Plains to the East Coast. South American weather in general still favorable with sporadic rain showers and normal temps.
December corn holding the month long higher trend and with support at $5.68 and resistance at $5.94 ¼, the spike high back in August. January soybeans breaking the long term lower trend last week but sideways since trading roughly a $.30 range from $12.60 to $12.90 and strong resistance around the $13 level. December KC wheat a new contract high today with support around $8.15. The last time a spot contract was above $9 was back in 2012 with the spot high that year at $9.48. December Chicago wheat also a new contract high today with support at $8.10. 2012 also the last time Chicago wheat eclipsed the $9 mark with a spot high at $9.47 ¼. December MPLS wheat contract high back on November 2nd at $10.86 ½ with support holding at $10.00. December Soybean Meal a new 4-month high last week at $382 with support at $358 and resistance up at $392.
Loewen and Associates, Inc.
Pete Loewen / Matt Hines / Doug Biswell
www.loewenassociates.com matt@loewenassociates.com
866-341-6700