Date: February 1st, 2023
All livestock futures began this week sharply higher, expect for the nearby Feb Lean hog contract which expires today. Higher cash fed cattle last week with good volume helped support the mostly triple digit gains on Monday. Last week’s negotiated cash cattle trade totaled 108,421 head. Of that 75% (81,474 head) were committed for nearby delivery while the remaining 25%
(26,947 head) were committed for deferred delivery.
NATIONAL FEEDER & STOCKER CATTLE SUMMARY – WEEK ENDING 02/11/2023
RECEIPTS: Auctions Direct Video/Internet Total
This Week: 256,500 52,000 5,100 313,600
Last Week: 147,900 31,100 49,400 228,400
Year Ago: 222,300 84,600 34,400 341,300
Compared to last week, steers and heifers in the Southeast sold 5.00 to 9.00 higher while the other areas were steady to 3.00 higher. The weather cooperated more this week with over 100K more auction cattle reported this week than last, and transportation of livestock was not an issue. Demand was reported as good to very good with the thin, green kind wanted by buyers
brought higher prices.
Joplin Regional Stockyards Feeder Cattle – Carthage, MO
Livestock Weighted Average Report for 2/13/2023 – Final
This Week: 9,452 Last Week: 9,124 Last Year: 7,911
Compared to last week feeder steers traded 2.00-6.00 higher. Feeder heifers traded steady to 3.00 higher. Supply was heavy with good demand. 7 weight index steers averaged $187 and 8 weights averaged $179-$184.
Oklahoma National Stockyards Feeder Cattle – Oklahoma City, OK
Livestock Weighted Average Report for 2/13/2023 – Preliminary
This Week: 9,750 Last Week: 7,663 Last Year: 13,154
Compared to last week: Feeder steers steady to 3.00 lower. Feeder heifers mostly steady. Steer calves steady to 5.00 lower than last week’s sharply higher market. Heifer calves steady to 3.00 higher, most advance on 5 weights. Demand moderate to good. Quality average to attractive. 7 weight index steers averaged $178 to $182 and 8 weights averaged $176.
Tulsa Livestock Auction – Tulsa, OK
Livestock Weighted Average Report for 2/13/2023 – Final
This Week: 2,138 Last Week: 2,308 Last Year: 2,059
Compared to last week: Steers 6.00-9.00 higher. Heifers 4.00-7.00 higher. Quality good. Demand good. Slaughter cows 5.00-8.00 higher. Slaughter Bulls 3.00 lower.
Sioux Falls Regional Cattle Auction – Worthing, SD
Livestock Weighted Average Report for 2/13/2023 – Final
This Week: 5,651 Last Week: 5,314 Last Year: 4,628
Compared to last week: Feeder steers under 750 lbs steady to 5.00 lower, 750 lbs – 950 lbs steady to 2.00 higher, over 950 lbs 1.00 to 4.00 lower. Feeder heifers under 700 lbs steady to 4.00 higher with instances of 14.00 higher, over 700 lbs steady to 4.00 lower. Demand for this eye appealing offering of feeder cattle was good. 7 weight index steers averaged $186 and 8 weights average $180 to $182.
Cattle slaughter on Monday estimated at 126,000 head, up 6,000 from last week and up 4,000 from last year. Hog slaughter on Monday estimated at 485,000 head, up 5,000 compared to a week ago and up 19,000 compared to a year ago.
Boxed beef cutout values on Monday higher on moderate to good demand with 116 loads sold.
Choice Cutout__269.95 +.29
Select Cutout__256.21 +1.92
CME Feeder Cattle Index__183.33 +.24
CME Lean Hog Index__74.64 +.63
Pork Carcass Cutout __81.74 +.69
February live cattle gapped higher yesterday and again into a new contract high at $162.27 with support down at $160.30 then $158.35. October 2014 was the all-time spot high for live cattle at $171.97. March feeders bounced off nearby resistance just above $188 last week with support down at $182.50. It is holding a month long higher trend but will need to break that nearby resistance, more resistance at $190 with the contract high up at $192.62. February lean hogs expire today. April will be then be the front month with a new recent low last week at $81.27 and resistance up around $88.
Grains traded both sides of unchanged on Monday with all finishing higher. March meal continuing to make new contract highs now above $500/T for the first time since the January contract expired last month and topped out at $516.60. Continued support from South American weather and increased escalations in Ukraine.
U.S. export inspections were the week ending February 9th were again strong for soybeans at 57.1 MBU. China continues to take the bulk, 36.7 MBU last week followed by the Netherlands, Mexico, Japan and Italy. Year to date bean inspections are now 2% ahead of last year’s pace yet USDA still has exports for this marketing year estimated at 18% less than last year. Wheat inspections were also above the average needed at 17.4 MBU. Japan was the #1 destination followed by Mexico, Vietnam and the Philippines. Year to date inspections remain on pace at 2% less than a year ago. Corn inspections totaled only 20.1 MBU, less than half than is needed per week. The top destination was Mexico at 11.7 MBU followed by Saudi Arabia at 2.9 MBU.
Grains were again mixed overnight. Soybeans and meal a touch lower with recent rains in central and southern Argentina breaking the ongoing heatwave. Outside markets show equities steady to higher, US$ lower and energies lower with crude down $1/barrel. Corn finished the overnight steady to 1 higher, soybeans 1 to 5 lower and wheat 3 lower to 1 higher.
Mexico has scrapped the deadline to ban GMO corn for animal feed and industrial use but still retained plans to keep the ban in place for grain used for human consumption. Russia continues to plea for sanctions to be lifted now saying that if they are not the extension of the Black Sea grain export deal would be inappropriate.
Scattered moisture continue this week across the U.S. with heavy rains in the forecast for the Southeast. The 6–10-day outlook showing above normal temps for the eastern half and below normal west with above normal precipitation across the entire country.
March corn still rangebound but showing a higher trend over the past couple months with nearby support around $6.50 and back to test resistance just under $6.89. March soybeans hit a new recent high yesterday at $15.55 ½, the contract high from June is at $15.72 ¼ and support at $15.20. March Chicago wheat a new recent high overnight at $7.96 ½ with resistance at $7.99 and support at $7.52. March KC wheat a new recent high overnight also at $9.16 ¾ with resistance next at $9.29 and support at $8.70. March MPLS wheat trading sideways the past couple months with support at $9.15 and resistance at $9.40. March soybean meal again a new contract high yesterday at $508.20, the spot high from August the next upside target at $531.20 and support down at $482.50.
Loewen and Associates, Inc.
Pete Loewen / Matt Hines / Doug Biswell / Tyson Loewen
www.loewenassociates.com matt@loewenassociates.com
785-537-3336
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