Date: November 2nd, 2022
The cattle markets remain hesitant as grains pushed higher again yesterday. We did see small gains earlier from both live cattle and feeders but soybeans were the leader higher yesterday and they seemed to help pull corn and wheat along with it. Lean hogs continue to hold nearby support and actually settled steady to higher. Very light volume cash fed cattle trade so far this week in the WCB only at $152 live. I would not expect to see much volume until Thursday. Asking prices in the South are $2 higher than last week’s $150 live trade.
Oklahoma National Stockyards Feeder Cattle – Oklahoma City, OK
Livestock Weighted Average Report for 10/31/2022 – Final
This Week: 6,565 Last Week: 7,938 Last Year: 8,003
Compared to last week: Feeder steers 1.00-2.00 higher, weights over 800 lbs. not well tested. Feeder heifers mostly steady. Demand moderate to good for feeder cattle. Steer calves 5.00-10.00 higher. Heifer calves steady to 4.00 higher, most advance over 500 lbs. Demand good for calves. Nice rains fell across the state last week and more is expected later in the week. Some winter wheat has emerged and some warm sun will be good for growth this week. 7 weight index steers averaged $177-$178 and 8 weight index steers averaged $172-$179.
Tulsa Livestock Auction – Tulsa, OK
Livestock Weighted Average Report for 10/31/2022 – Final
This Week: 4,165 Last Week: 3,537 Last Year: 4,036
Compared to last week: Steers 7.00 – 9.00 higher. Heifers 8.00 – 9.00 higher. Value Added cattle 4.00 – 7.00 higher. Quality mostly attractive, thru good.
Sioux Falls Regional Cattle Auction – Worthing, SD
Livestock Weighted Average Report for 10/31/2022 – Final
This Week: 3,619 Last Week: 5,148 Last Year: 1,726
Compared to last week: Feeder steers 600 lbs and under 2.00 to 3.00 higher, 600 lbs and over steady to 5.00 lower, feeder heifers steady to 5.00 lower, except 400 lbs – 450 lbs and 900 lbs – 950 lbs steady to 5.00 higher. 7 weight index steers averaged $184-$189 and 8 weight index steers averaged $179.
Philip Livestock Auction – Philip, SD
Livestock Weighted Average Report for 11/1/2022 – Final
This Week: 9,426 Last Week: 7,509 Last Year: 7,432
Compared to last week Feeder Steers 400 to 750 Steady, Feeder Heifers under 450 2.00 to 3.00 higher, 450 to 500 3.00 lower, 500 to 600 Steady, 600 to 650 2.00 lower, 650 to 750 Steady. 7 weight index steers averaged $175 for unweaned up to $193 and 8 weights averaged $191.50.
Joplin Regional Stockyards Feeder Cattle – Carthage, MO
Livestock Weighted Average Report for 10/31/2022 – Final
This Week: 5,692 Last Week: 4,590 Last Year: 6,563
Compared to last week feeder steers under 575 lbs. traded 5.00-7.00 higher with heavier weights trading from 3.00 lower to 4.00 higher. Feeder heifers traded 2.00-6.00 higher. Supply was moderate with good demand. 7 weight index steers averaged $172-$178 and 8 weight index steers averaged $172-$179.
Ozarks Regional Stockyards Feeder Cattle – West Plains, MO
Livestock Weighted Average Report for 11/1/2022 – Final
This Week: 2,697 Last Week: 2,118 Last Year: 2,568
Compared to last week, steer and heifer calves traded 5.00-10.00 higher with spots 15.00 higher. Yearlings were not well tested. Demand was very good on a moderate supply. Quality was above average with several large drafts of long-time weaned and vaccinated, black-hided calves. Rain across the Southern Plains has renewed interest in calves, with a much better outlook for wheat pastures for grazing.
Cattle slaughter on Tuesday estimated at 128,000 head, down 1,000 from last week but up 5,000 from last year. Hog slaughter on Tuesday estimated at 489,000 head, also down 1,000 compared to a week ago but up 8,000 compared to a year ago.
Boxed beef cutout values on Tuesday lower on moderate to good demand with 132 loads sold.
Choice Cutout__262.63 -1.02
Select Cutout__232.73 -1.73
CME Feeder Cattle Index__176.97 -.51
CME Lean Hog Index__93.79 +.02
Pork Carcass Cutout __97.21 -2.73
National Wtd Avg Cash Carcass Base__89.75 +1.41, 8,506 head
December live cattle hit a new contract high last week at $154.25, gapped lower on Monday taking out nearby support with the next at $151. November feeders into a new recent high last week which is now the nearby resistance at $179.77. The sharply lower move on Monday though took out the 3-week long higher trend with price support next at $174.75. December lean hogs breaking nearby support today with the next around $84 and resistance tested last week at $90.
Over in the grains, again soybeans were the leader Tuesday taking the reins from wheat. Export activity for beans has been very good recently and China looks to remain on pace so far this marketing year. South America has a few issues this week with freezing temps expected midweek followed by little to no rain over the next week to week and half. Brazil is about half way done planting soybeans. There’s also the presidential election in Brazil that sparked mass riots and highway blockades impeded the flow of goods and services, food and exports. Soybeans hit new recent highs along with the three wheat markets as corn still tested nearby resistance.
The USDA released September domestic grain usage reports yesterday afternoon. Soybean crush came in at 167.6 MBU, right at the average trade guess but down from 175 MBU crushed in August and up from the 164.1 MBU crushed in September 2021. It was the lowest monthly crush over this past year. Soybean oil stocks dropped to a 23-month low and the tightest since meal stocks since May of 2019. September corn use for ethanol pegged at 383.088 MBU, down 11% from August and down 6% from September 2021.
Grains were steady to higher until Russia announced it will resume its participation in the Black Sea grain deal. Wheat markets will continue to trade these headlines as seen from the 30 to 50 cent drop in wheat futures early this morning. Corn and beans also pulled lower with corn finishing the overnight 12 to 13 lower and soybeans 9 to 11 lower. U.S. equities are lower this morning along with the US$ as energies are steady.
Heavy rains in the forecast from the Gulf up into the Great Lakes later this week with possible severe weather for parts of the Southern Plains but still dry for the western half of KS down into the panhandle of OK. The 6-10 day outlook showing below normal temps in the Northwest and above normal temps for the eastern half of the U.S. with normal to below normal moisture stretching form the Southwest up into the ECB and above normal moisture the PNW and Northern Plains.
December corn touching the $7 level this week but unable to break through with the October high at $7.06 ½ and support being tested again overnight at $6.80 with last month’s low at $6.74. November soybeans now in delivery. The January contract hit a new recent high overnight at $14.57 ¾ with resistance next around the $15 level and support at $13.97. December KC Wheat up to $9.91 for another new recent high overnight before reversing lower with resistance around the $10 level then the October high at $10.37 ½ and support around $9.40. December Chicago wheat has resistance at $9.04, the October high at $9.49 ¾ and last Friday’s low down at $8.22 ½. December MPLS wheat has support at $9.40 and a new recent high overnight at $9.93. December soybean meal contract high at $443.80 with support at $406.50.
Loewen and Associates, Inc.
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