Date: December 6th, 2022
Mixed livestock futures to start the week as steady to higher cash fed cattle trade last week was not as supportive as I would have liked to seen. It also didn’t help with outside markets providing pressure. Feeders held triple digits higher with grains off.
Oklahoma National Stockyards Feeder Cattle – Oklahoma City, OK
Livestock Weighted Average Report for 12/5/2022 – Prelim
This Week: 14,000 Last Week: 6,254 Last Year: 17.068
Feeder steers and heifers unevenly steady. Demand moderate to good. Steer calves 4.00 – 7.00 higher, with instances 12.00 higher. Heifer calves over 450lbs. unevenly steady, under 450lbs 15.00 – 20.00 higher. Demand good for most calves.
Tulsa Livestock Auction – Tulsa, OK
Livestock Weighted Average Report for 12/5/2022 – Final
This Week: 4,440 Last Week: 3,409 Last Year: 4,947
Compared to last week: Steers 5.00-7.00 lower. Heifers mostly steady to 3.00 higher. Demand good. Quality average thru plain. Slaughter cows mostly steady. Slaughter bulls 4.00-6.00 lower. 7 weight index steers averaged $164-$173.
Sioux Falls Regional Cattle Auction – Worthing, SD
Livestock Weighted Average Report for 12/5/2022 – Final
This Week: 3,724 Last Week: 3,850 Last Year: 3,835
Compared to last week: Feeder steers steady to 5.00 higher, with instances of 13.00 higher, under 500 lbs steady to 3.00 lower. Feeder heifers 1.00 to 5.00 higher with instances of 12.00 higher, 400 lbs – 500 lbs 1.00 to 5.00 lower. Several farmer feeders in the seats today. Demand for this large offering of eye appealing cattle was good. 7 weight index steers averaged $183 -$187.50.
Joplin Regional Stockyards Feeder Cattle – Carthage, MO
Livestock Weighted Average Report for 12/5/2022 – Final
This Week: 10,522 Last Week: 10,063 Last Year: 10,441
Compared to last week feeder steers traded steady to 5.00 higher with the following exceptions. 20 head of 391 lb. steers traded at 260.00 and 294 head of 858 lb. steers traded at 187.50. Feeder heifers traded steady with 22 head averaging 431 lbs. traded from 190.00-196.00. The offering included over 900 drafts. Supply was heavy with very good demand. 7 weight index steers averaged $181-$182 and 8 weight index steers averaged $177-$184.
Cattle slaughter on Monday estimated at 127,000 head, down 1,000 from last week but up 6,000 from last year. Hog slaughter on Monday estimated at 491,000 head, down 2,000 compared to a week ago but up 36,000 compared to a year ago.
Boxed beef cutout values on Monday lower on moderate demand with 132 loads sold.
Choice Cutout__243.31 -6.62
Select Cutout__221.11 -3.45
CME Feeder Cattle Index__178.14 -.89
CME Lean Hog Index__82.79 -.08
Pork Carcass Cutout __86.46 -2.48
December live cattle still holding a higher trend, contract high on November 23rd at $154.72 and support at $152.25. January feeders breaking resistance for a new recent high yesterday at $184.20 with the next resistance level up at $185.40 and support at $180 then $176.70. December lean hogs expiring next week. February has had 4 consecutive days higher and back to test resistance at $92 yesterday with support down around $84.
Grains lower yesterday as wheat was the leader to the downside. Not much new fundamental news recently yet funds continue sell wheat and most calling it still a technical collapse. World wheat values have been weaker and the U.S. has not been able to grab much new export business. The term, high prices cure high prices coming to mind when thinking about wheat right now as export sales and shipments have been lacking. Soybeans and meal holding up the best right now. South American weather still mixed with Brazil very good conditions making up for any dry weather concerns in Argentina.
Export inspections for the week ending December 1st were withing the expected ranges for both corn and soybeans while exceeding expectations for wheat yet still below the average needed per week to meet the current USDA export estimate. Wheat inspections totaled 12.3 MBU, the average needed at 14.2 MBU, with the Philippines, Mexico and Japan the top three destinations. Corn inspections totaled 20.6 MBU with China and Mexico combining for nearly all of it. Soybean inspections were 63.3 MBU as China remains the top destination taking over 70% of the total followed by Indonesia, Mexico and Taiwan. China also took another cargo of grain sorghum but the year to date still running 68% last year.
Grains overnight were mixed, soybeans leading the charge the higher and wheat steady to lower. lower. Equites and energies lower this morning, crude down $1/barrel and US$ a little weaker. Corn finished the overnight 1 higher, soybeans 10 to 13 higher and wheat 1 higher to 3 lower. South Korea bought one cargo of South American origin corn, 1 cargo of Australian feed wheat and a few mills combining for a total of 50,000 MT or 1.8 MBU of U.S. milling quality wheat. USDA announced a total of 504,000 MT or 18.5 MBU of soybeans sold for delivery to China and unknown destinations.
Some light rain chances over the Southern Plains this week with heavy rains in the Southeast early next week. The 6-10 day outlook showing above normal temps for the eastern half of the U.S. and below for the western half with above normal moisture across the entire nation except for a small pocket of below normal in the Southwest.
March corn breaking support last week and hitting a new 4-month low yesterday at $6.37 ¾, support next down around $6.20 and resistance at $6.74. January soybeans still choppy but a higher trend holding with a new recent high last week at $14.78 ½ and support at $14.25. March KC wheat holding a lower tend with a new recent overnight at $8.38 ½ and resistance at $9.11. March Chicago holding a steeper lower trend, a new low for the year yesterday at $7.34 and resistance at $8.00. March MPLS wheat testing support right around the $9.00 level with resistance at $9.45. January Soybean meal the leader, settling higher the last 4 consecutive trading days, hitting a new contract high overnight at $438 with support down at $408.
Loewen and Associates, Inc.
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