Date: December 7th, 2021
Livestock futures mixed yesterday with cattle markets higher and lean hogs lower to test nearby support levels. Monday’s are typically difficult for livestock markets as live cattle futures await cash fed cattle trade for more direction. On Monday, about 1,000 head traded in the North at $140 live, steady with last week. I would anticipate higher asking prices again this week. Cash hogs continue to slide lower but pork carcass values finished over $2 higher yesterday.
Oklahoma National Stockyards Feeder Cattle – Oklahoma City, OK
Livestock Weighted Average Report for 12/6/2021
This Week: estimated 18,000 Last Week: 10,817 Last Year: 16,925
Compared to last week: Feeder steers steady to 3.00 higher with instances 7.00 higher. Feeder heifers unevenly steady. Steer calves 2.00 – 4.00 higher. Heifer calves 3.00 – 6.00 lower. Demand moderate to good. Quality mostly attractive.
Tulsa Livestock Auction – Tulsa, OK
Livestock Weighted Average Report for 12/6/2021
This Week: 4,947 Last Week: 3,761 Last Year: 4,629
Compared to last week: Steers. 5.00-7.00 higher. Value Added steers 4.00-8.00 higher. Heifers 1.00-3.00 higher while Value Added heifers traded mostly steady. Demand good. Quality average thru attractive.
Joplin Regional Stockyards Feeder Cattle – Carthage, MO
Livestock Weighted Average Report for 12/6/2021
This Week: 10,441 Last Week: 8,342 Last Year: 10,277
Compared to last week feeder steers under 550 lbs. traded 5.00-10.00 higher. Heavier weights traded steady to 4.00 higher. A draft of 641 head weighing 849 lbs. traded at 170.00. Feeder heifers traded steady. Supply heavy with good demand.
Sioux Falls Regional Cattle Auction – Worthing, SD
Livestock Weighted Average Report for 12/6/2021
This Week: 3,835 Last Week: 2,893 Last Year: 4,744
Compared to last week: Feeder steers under 650 lbs steady to 3.00 lower, over 650 lbs steady to 3.00 higher. Feeder heifers under 600lbs higher undertones were very evident, over 600 lbs 1.00 to 3.00 higher, except 800-850 lbs 1.00 to 3.00 lower. Demand for this large offering of eye appealing cattle was good. The biggest demand continues to be black hided cattle. Several lots of lighter cattle this week, with only a few loads of yearlings. Feeder steers and heifers were clean and green today.
Cattle slaughter from Monday estimated at 122,000 head, up 1,000 from last week and up 3,000 from last year. Hog slaughter from Monday estimated at 460,000 head, down 23,000 compared to a week ago and down 28,000 compared to a year ago.
Boxed beef cutout values on Monday lower on moderate demand with 116 loads sold.
Choice Cutout__272.53 -1.83
Select Cutout__257.85 -.79
CME Feeder Cattle Index__160.43 -1.15
CME Lean Hog Index__70.78 +.25
Pork Carcass Cutout__83.71 +2.34
National Wtd Avg Carcass Base__60.51 -1.29
December live cattle hit a new contract high last week at $139.12 with support holding around $136. January feeders holding a lower trend this past week with support at $162 and resistance up around $168. December lean hogs also trending lower with support tested Monday from $72 down to $71.30 and resistance at $78.
Grains were also mixed again to start this week, a lot less volatile in the swings though. Geopolitical news getting the most attention as many fear Russia will soon invade Ukraine and the U.S. announced that no diplomats, just athletes, will attend the upcoming Winter Olympics in China. Exports sales recently have been very good, just not bullish or leading to an additional price rally yet for soybeans. Barge traffic was stopped on Monday due to seven mile stretch of the Mississippi River currently being dredged. Several barges being pushed southbound on Friday ran aground near Rosedale, MS.
Inspections this past week for soybeans over 82 million bushels, yet year to date is still behind last year’s pace by more than 20%. Corn inspections were average for this time of year again at nearly 30 million bushels. The weekly average needed though to hit the USDA export estimate is up to 54.1 million bushels. Grain sorghum inspections near the average needed at 6.7 million bushels this past week. Wheat inspections continue to be poor at only 9 million bushels with the weekly average needed up to 15.7 million bushels. China the #1 destination for soybeans at 53.8 million bushels and grain sorghum at 6.5 million bushels, #2 destination for corn at 5.4 million bushels. Mexico the #1 destination for corn at 15 million bushels along with 4.5 million bushels of soybeans and 1.9 million bushels of wheat.
Grains fairly quiet overnight trading just a few cents on either side of unchanged. Equities and energies both higher so far today after gaining yesterday as well. At this time, at least those markets seem to have expected and moved on from the panic selling from over a week ago due to the new COVID variant. Corn finished the overnight steady to 3 lower, soybeans 1 higher to 2 lower, and wheat steady to 4 lower.
Taiwan purchased a couple corn cargoes from Argentina overnight. USDA announced a daily export sale this morning of 123,000 MT or 4.5 MBU of soybeans for delivery to unknown destinations. This marks the fourth day in a row for daily soybean export sales. Chinese customs data reported 8.57 MMT or 315 MBU of soybeans imported in November, up from 5.11 MMT or 188 MBU. Year to date imports at 87.65 MMT or 3.2 BBU down 189 MBU from January through November 2020.
More seasonal temps here locally but warming back up heading into the weekend. The U.S. 6-10 day outlook still showing normal to above normal temps across the entire country with above normal moisture for the western third but below normal remaining in place across the Plains to the East Coast. The forecasts for Southern Brazil and Argentina remain dry as well.
March corn still holding a higher trend since mid-September with nearby support around $5.60 and resistance at last week’s new 3-month high at $5.96 ¾. January soybeans very choppy this past month with support at $12.14 and resistance up around $12.80. March KC wheat well off the contract high from November at $8.92 ¼, yet still holding the long-term higher trend with support at $8.00 and resistance at $8.48. March Chicago wheat has nearby support at $7.82 with resistance at $8.24. March MPLS wheat chopping sideways from $10 to $10.65 over this past month. January Soybean Meal holding a higher trend since mid-October with support around $340 and resistance at $350 then $375.
Loewen and Associates, Inc.
Pete Loewen / Matt Hines / Doug Biswell
www.loewenassociates.com matt@loewenassociates.com
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