Date: October 25, 2023
Livestock futures traded both sides of unchanged on Tuesday, thank goodness we didn’t need the expanded limits though for live cattle or feeders. Live cattle traded $4+ ranges, daily trading limits were $10, while feeders traded $5 to $6 ranges with yesterday’s limits at $12.25. Both nearby October live and feeder contracts are set to expire soon and were the most supported yesterday holding triple digit gains. Cash fed cattle trade still premium to the futures as of last week and hopes that will help support the market again this week with beef prices still holding in there and higher yesterday as well. Only light volume cash fed trade so far this week in the North at $183 to $184 live and $288 to $290 dressed. This is still premium to futures contracts, but steady to $4 lower than a week ago.
Joplin Regional Stockyards Feeder Cattle – Carthage, MO
Livestock Weighted Average Report for 10/23/2023 – Final
This Week: 4,425 Last Week: 4,850 Last Year: 4,590
Compared to last week feeder steers sold 8.00-14.00 lower with feeder heifers selling 9.00-16.00 lower. 7 weight index steers averaged $243 and 8 weights averaged $227-$240.
Oklahoma National Stockyards Feeder Cattle – Oklahoma City, OK
Livestock Weighted Average Report for 10/23/2023 – Prelim
This Week: 6,600 Last Week: 6,984 Last Year: 7,938
Compared to last week: Feeder steers and heifers 4.00-8.00 lower some later heifer sales up to 15.00 lower. Demand light to moderate as cattle futures closed sharply lower following a very Bearish Cattle on Feed Report last Friday. Steer calves 2.00-4.00 lower, except few under 500 lbs. long weaned or fancy sold sharply higher. Heifer calves 4.00-10.00 lower. 7 weight index steers averaged $239 and 8 weights averaged $232-$236.
Sioux Falls Regional Cattle Auction – Worthing, SD
Livestock Weighted Average Report for 10/23/2023 – Final
This Week: 1,813 Last Week: 4,834 Last Year: 5,148
Compared to last week: In a lighter offering, steer and heifer calves sold with lower to much lower undertones. Yearling feeder steers 5.00 to 10.00 lower, instances sharply lower, heifers sold with lower to much lower undertones.
Kingsville Livestock Auction – Kingsville, MO
Livestock Weighted Average Report for 10/24/2023 – Final
This Week: 2,154 Last Week: 2,001 Last Year: 1,856
Compared to last week, the majority of steer and heifer calves sold 5.00-15.00 lower and yearlings sold 5.00-8.00 lower. The exception was some bigger groups of fancy steers weighing 550-625 lbs that sold steady.
Ozarks Regional Stockyards Feeder Cattle – West Plains, MO
Livestock Weighted Average Report for 10/24/2023 – Final
This Week: 1,731 Last Week: 2,003 Last Year: 2,118
Compared to last week, the better tested weights of 400-699 lb. steer and heifer calves sold 15.00-20.00 lower. Demand was moderate on a light supply.
Philip Livestock Auction – Philip, SD
Livestock Weighted Average Report for 10/24/2023 – Final
This Week: 7,607 Last Week: 5,753 Last Year: 7,509
Compared to last week Feeder Steers 350 to 450 15.00 to 20.00 lower, 450 to 500 8.00 to 12.00 lower, 500 to 550 4.00 to 8.00 lower, 550 to 700 10.00 to 15.00 lower, Feeder Heifers 350 to 450 8.00 to 12.00 lower, 450 to 550 6.00 lower, 550 to 800 8.00 to 10.00 lower. Good Demand for several long strings and many load lots and packages of Feeder Steers and Feeder Heifers.
Cattle slaughter on Tuesday estimated at 126,000 head, down 1,000 from last week and down 5,000 from last year. Hog slaughter on Tuesday estimated at 483,000 head, matching a week ago but down 9,000 compared to a year ago.
Boxed beef cutout values on Tuesday higher on moderate demand with 101 loads sold.
Choice Cutout +1.44 @ 305.98, Select Cutout +2.98 @ 284.00
CME Feeder Cattle Index @ 242.12, Lean Hog Index @ 78.67
Pork Carcass Cutout -1.96 @ 86.59
October live cattle dipped to a new recent low yesterday at $177.35 before reversing higher. This is the lowest spot price since July with support next at $176.20 and resistance up around $186. October feeders expire tomorrow and did not make a new low yesterday with support at $237.17 and resistance around $252. December lean hogs hit a new contract low last Friday at $65.40 with support next down at $63.50 from the continuous weekly chart. This is not only a new contract low but the lowest spot month price since January 2021. Deferred contracts though made new contract lows again yesterday.
Grains were mixed again on Tuesday, this time soybeans the leader higher. Actually, it was meal that skyrocketed higher and pulled the beans with it. Since the recent lows on October 3rd, December meal has rallied $65.50/T on building concerns that Argentina will soon be out of the meal export market. They typically account for nearly 40% of the world’s soymeal exports. This past year’s soybean crop was nearly half of normal production and will drop their % share down to 30% this season. Corn futures now a 3-day skid lower and looking to take out the recent higher trend. Wheat continues to be a very choppy market with KC wheat still near the recent lows but both Chicago and MPLS wheat holding short term higher trends.
Grains were again mixed overnight. Markets don’t appear to be too excited to test the recent lows for corn or beans with U.S. harvest coming to a standstill this week. Any rallies though seem to be capped for the time being with rain in the forecast for dry areas of South America. Corn finished the overnight steady to 1 lower, soybeans 1 to 4 lower and wheat 2 lower to 2 higher. Outside markets have equities lower, US$ higher and energies steady. USDA announced a private sale this morning of 126,000 MT or 4.6 MBU of soybeans for delivery to China.
Rains from Texas to the Great Lakes over this next week with some locally heavy amounts already overnight from southcentral to eastern KS. A hard freeze expected over the weekend for many areas. The 6-10 day outlook holding below normal temps for the majority of the country along with below normal precipitation from the Mountain West to the Northeast.
December corn down to a new recent low overnight at $4.81 with support next at $4.76 and resistance up at last week’s high at $5.09 ½. November soybeans have support at the October low at $12.50 ½ with resistance at last week’s high at $13.18 ½. December Chicago wheat holding a higher trend so far this month with support around $5.70 and resistance at $6.04 ½. December KC wheat choppy and trading a range so far this month from $6.92 ½ to $6.55 ¼. December MPLS wheat contract low on October 2nd at $7.07 ½, slowly trending higher since with resistance at $7.46. December soybean meal shot up to a new contract high overnight at $439.40 with nearby support down at $412.
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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