Date: December 15th, 2021
Livestock futures lower yesterday as cattle futures traded within Monday’s range and lean hogs extended losses. The next couple week’s trade could be very quiet as we enter the typical, low volume and small range bound holiday trading. Cash fed cattle trade still yet to be established, although early light volume trade in TX yesterday was at $138 live. Packers needs will be less over the next few weeks even though ready supplies are also tighter. The hope is we can at least hold steady values around $140 to wrap up this year.
Oklahoma National Stockyards Feeder Cattle – Oklahoma City, OK
Livestock Weighted Average Report for 12/13/2021
This Week: 14,695 Last Week: 17,068 Last Year: 10,744
Compared to last week: Feeder steers unevenly steady. Feeder heifers 1.00-3.00 higher. Heavier weight steers and heifers lightly tested. Steer and heifer calves steady, instances of up to 8.00 higher. Demand continues good for all classes, despite another week of large runs. In many cases, heavier weight cattle are out selling their lighter weight mates due to high feed costs.
Joplin Regional Stockyards Feeder Cattle – Carthage, MO
Livestock Weighted Average Report for 12/13/2021
This Week: 9,922 Last Week: 10,441 Last Year: 4,044
Compared to last week feeder steers traded steady to 3.00 higher. Feeder heifers traded steady.
Winter Livestock (Tuesday) – La Junta, CO
Livestock Weighted Average Report for 12/14/2021
This Week: 7,071 Last Week: 7,553 Last Year: 3,843
Compared with last Tuesday’s higher market: Feeder steers under 400 lbs steady, 400 to 650 lbs 3 to 8.00 lower, 650 to 700 lbs steady, over 700 lbs steady to 3.00 higher. Feeder heifer under 600 lbs 3.00 to 5.00 instances 8.00 lower, over 600 to lbs steady to 5.00 higher.
Ozarks Regional Stockyards Feeder Cattle – West Plains, MO
Livestock Weighted Average Report for 12/14/2021
This Week: 3,607 Last Week: 3,928 Last Year: 3,186
Compared to last week, steer calves traded unevenly steady while heifer calves traded steady to 3.00 higher. Yearling steers traded steady to firm with yearling heifers not well tested. Demand was good on a moderate supply.
Miles City Livestock Commission Auction – Miles City, MT
Livestock Weighted Average Report for 12/14/2021
This Week: 4,571 Last Week: 1,757 Last Year: 3,665
Compared to last week: Yearling steers and heifers were too lightly tested to develop any market trend. Feeder steers under 500 lbs sold steady to firm in a narrow comparison. Steers over 500 lbs sold steady to 5.00 higher. Heifer calves under 500 lbs sold mostly steady to 5.00 lower, heifers over 500 lbs sold mostly 5.00-10.00 higher.
Cattle slaughter from Tuesday estimated at 122,000 head, down 1,000 from last week but up 3,000 from last year. Hog slaughter from Tuesday estimated at 483,000 head, up 13,000 compared to a week ago but down 11,000 compared to a year ago.
Boxed beef cutout values on Tuesday lower on moderate to strong demand with 146 loads sold.
Choice Cutout__260.72 -2.50
Select Cutout__248.80 -4.84
CME Feeder Cattle Index__161.77 -.39
CME Lean Hog Index__72.10 -.08
Pork Carcass Cutout __85.48 -1.55
National Wtd Avg Carcass Base__ 60.50 +1.95
December live cattle in delivery as volume is getting thin and so far content to trade roughly a $4 range from just above $139 down to $135. The February contract hit a contract high on November 29th at $141.85 with support around $136. January feeders range bound from $168.30 to $162.80 over the past 4 weeks. February lean hogs chopping in a $14 range since June with nearby support at $74 and resistance just above $81 then up at $84.60.
Grains finished mixed on Tuesday with soybeans leading the charge higher, pulling corn with it but leaving wheat futures steady to lower for the day. It was actually soybean meal that led the complex higher hitting levels not seen since this past summer. Crush is still cruising along near record levels but meal stocks are now a bit tight since the shift to oil was made earlier this year. South American weather has seen recent moisture and some more in the nearby forecast easing concerns from previously early dry conditions. Argentina and Southern Brazil are still the key areas to keep on eye into the last half of the month as the 6-10 day outlooks continues to show below normal moisture.
Grains were mixed overnight with meal again the leader higher, corn and soybeans trading both sides of unchanged while wheat was under pressure. Equites and energies are also weaker. Corn finished the overnight steady to 2 higher, soybeans 2 to 3 higher, and wheat 5 to 9 lower.
Lots of wheat being traded this week and next but U.S. values still too high to compete. Algeria purchased 25+ MBU of optional origin wheat looking to come from Argentina, Germany and Black Sea shippers. Jordan tendering for 4.4 MBU of milling quality wheat, over 8 MBU tender from the Philippines and 11.7 MBU tender for Turkey. No daily sales announced by USDA this morning making it 4 days in a row now.
Be careful out there today as high winds and pop up storms are in the forecast. Dry conditions continue for most of the Plains with heavy rains in the Southeast over the weekend and into next week. The 6-10 day outlook still showing normal to above normal temps across the southern half of the country with above normal moisture for the western third and below normal for the Southern Plains.
March corn still trending higher to sideways with nearby support around $5.60 and strong resistance from $5.94 to $5.96 ¾. January soybeans very choppy this past month with support at $12.37 and resistance around $12.75. March KC wheat still holding a lower trend since the contract high from November at $8.92 ¼ with support at $7.88 and resistance at $8.34. March Chicago wheat testing nearby support around $7.70 with resistance at $8.12. March MPLS wheat chopping sideways from $10 to $10.65 since late October. January Soybean Meal spiking to a new 6-month high with resistance next up around $390 and support at $350.
Loewen and Associates, Inc.
Pete Loewen / Matt Hines / Doug Biswell
www.loewenassociates.com matt@loewenassociates.com
866-341-6700