NATIONAL FEEDER

AND STOCKER CATTLE

(Federal-State Market News)

St. Joseph, Mo.

Nov. 27

RECEIPTS

This Week Last Week Last Year

94,900 343,800 80,900

Compared to last week, steers and heifers were too thinly tested to establish a trend, however a lower undertone is noted. Marketing of feeder cattle were limited to the Midwest and Upper Plains states this week as the supply of feeders was light.

However, most sale barns remained dark this week for the holiday and receipts were moderate to heavy in the barns that held sales; most of which were advertised as a special sale in some way or another and occurred mostly on Monday and Tuesday. Demand was moderate to good as limited auctions happened Thanksgiving week and available supplies were met with so-so buyer activity.

Now comes the storm. Three and a half weeks of frenzied marketing of feeder cattle prior to the Christmas holiday is upon us. Historically, the next two weeks of receipts will be among the largest weekly numbers each year.

Winter Storm Kate pushed through the Northern Plains and Midwest this past weekend that left plunging temperatures and snow in its path.

The big news from this past week is the collapse of the CME Cattle Complex on the Friday after Thanksgiving. The front 3 Feeder Cattle contracts were 7.225 to 7.800 lower on Friday, while the front 3 Live Cattle contracts were 3.750 to 4.300 lower. Since Labor Day, January Feeder Cattle futures has lost 36.10, while the March and April contracts were 34.125 and 33.125 lower, respectively.

Fundamentally, packers are managing their inventory magically into a lower market moving forward into December.

This year’s December Live Cattle contract close on the Friday after Thanksgiving is over 17.00 higher than last year while Choice Boxed beef is around 46.00 higher than a year ago.

On light trading, negotiated cash fed cattle trade in the Nebraska sold 2.00 lower at 176.00, while the light volume of dressed sales sold 2.00 lower at 280.00. Live sales in the Southern Plains were reported 1.00 lower at 177.00. Meat buyers have already gotten their holiday supplies covered as current boxed beef prices have weakened this past month and consumers now will turn to picking up their bone-in ribeye roasts or hams for the Christmas holiday from the grocery store.

Choice boxed beef closed the week 4.16 higher at 298.03 while Select was 1.94 lower at 268.76 for the same period.

Weekly Cattle Slaughter under federal inspection estimated at 538K for the turkey day holiday week, 98K less than last week and 51K less than a year ago. Auction volume this week included 50 percent weighing over 600 lbs and 40 percent heifers.

Northwest Weighted Average Direct Feeder Cattle

Weekly Summary WA-OR-ID-UT

Nov. 22

This Week Last Week Last Year

180 629 574

Compared to last week: Not enough trades to test trends this holiday shortened week. Demand moderate. Supply included: 100% Feeder Cattle (66.7% Steers, 33.3% Heifers). Feeder cattle supply over 600 lbs was 100%. Unless otherwise noted, Feeder Cattle prices FOB based on net weights after a 2-3% shrink or equivalent, with a 4-8 cent slide >600 lbs. Livestock reported this week originated from OR.

Steers — Medium and Large 1-2

120 head: 860 lbs; 203.00 Current DEL

Heifers — Medium and Large 1-2

60 head: 830 lbs, 193.00 Current DEL

Dairy Heifers — Medium and Large 2

90 head: 600 lbs, 201.00 Current FOB

Dairy Heifers — Medium and Large 3

40 head: 650 lbs, 259.00 Current FOB