AgCenter Cattle Market Report & Analysis
<div class=\"default-font-wrapper\" style=\"line-height: 1;font-size: 12pt; font-family: Verdana, Geneva, sans-serif;\"><p id=\"isPasted\" style=\"box-sizing: inherit; max-height: 1e+06px; letter-spacing: 0.5px; margin: 0px 0px 1rem; color: var(--wp--preset--color--vivid-cyan-blue) !important; font-size: 19px; line-height: 1.6; font-family: Oswald, sans-serif; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; white-space: normal; background-color: rgb(255, 255, 255); text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial;\"><strong style=\"box-sizing: inherit; max-height: 1e+06px; font-weight: bold;\"><span style=\"font-family: Verdana, Geneva, sans-serif; font-size: 12pt;\">November 18, 202</span></strong><span style=\"font-family: Verdana, Geneva, sans-serif; font-size: 12pt;\">4</span></p><p style=\"box-sizing: inherit; max-height: 1e+06px; letter-spacing: 0.5px; margin: 0px 0px 1rem; color: var(--wp--preset--color--vivid-cyan-blue) !important; font-size: 19px; line-height: 1.6; font-family: Oswald, sans-serif; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; white-space: normal; background-color: rgb(255, 255, 255); text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial;\"><span style=\"font-family: Verdana, Geneva, sans-serif; font-size: 12pt;\"><strong style=\"box-sizing: inherit; max-height: 1e+06px; font-weight: bold;\">THE MARKETS</strong></span></p><p style=\"box-sizing: inherit; max-height: 1e+06px; letter-spacing: 0.5px; margin: 0px 0px 1rem; font-size: 19px; line-height: 1.6; color: rgb(51, 51, 51); font-family: Oswald, sans-serif; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; white-space: normal; background-color: rgb(255, 255, 255); text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial;\"><span style=\"font-family: Verdana, Geneva, sans-serif; font-size: 12pt;\">Packers are entering the week with light inventories, but next week will be a holiday shortened week. They will likely increase the slaughter volume this week in anticipation of smaller volumes Thanksgiving week. The balance between buyers and sellers of fed supplies is not burdensome so much rests with the tone of the market as expressed in the futures trading and box price direction.</span></p><p style=\"box-sizing: inherit; max-height: 1e+06px; letter-spacing: 0.5px; margin: 0px 0px 1rem; font-size: 19px; line-height: 1.6; color: rgb(51, 51, 51); font-family: Oswald, sans-serif; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; white-space: normal; background-color: rgb(255, 255, 255); text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial;\"><span style=\"font-family: Verdana, Geneva, sans-serif; font-size: 12pt;\">Trading ended last week on a positive note as Thursday’s $184 bids moved back to $185 in an unsuccessful attempt to gain more inventory on Friday. The week ended with another week of limited sales volumes. In the north live prices declined to $184-$185 in the south cattle owners accepted the $185 bids. Dressed sales were mainly $290. Live prices were $2-3 lower and dressed prices $4-6 lower.</span></p><p style=\"box-sizing: inherit; max-height: 1e+06px; letter-spacing: 0.5px; margin: 0px 0px 1rem; font-size: 19px; line-height: 1.6; color: rgb(51, 51, 51); font-family: Oswald, sans-serif; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; white-space: normal; background-color: rgb(255, 255, 255); text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial;\"><span style=\"font-family: Verdana, Geneva, sans-serif; font-size: 12pt;\">The value of the dollar has been rising in relation to other world currencies. It is currently trading close to $1.06 after trading as low as $1.02 pre-election. The value of the dollar has a direct bearing on the cost of our beef to foreign buyers and the recent jump has increased the cost of our exported beef and at the same time made imported beef cheaper. Beef exports this year remain slightly below last year but have been strong relative to the high price. Beef imports have risen 20% as the value of our ground beef remains the bulwark of beef sales.</span></p><p style=\"box-sizing: inherit; max-height: 1e+06px; letter-spacing: 0.5px; margin: 0px 0px 1rem; font-size: 19px; line-height: 1.6; color: rgb(51, 51, 51); font-family: Oswald, sans-serif; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; white-space: normal; background-color: rgb(255, 255, 255); text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial;\"><span style=\"font-family: Verdana, Geneva, sans-serif; font-size: 12pt;\">This past week’s slaughter was 606,000 down 13,000 from the previous week and 33,000 under last year. The choice cutout remains above last year although the cutout has lost $15 in recent trading. The fed cattle portion of the weekly slaughter continues to make a larger percentage of the total slaughter than prior years with cow slaughter of both dairy and beef cows in decline.</span></p><p style=\"box-sizing: inherit; max-height: 1e+06px; letter-spacing: 0.5px; margin: 0px 0px 1rem; font-size: 19px; line-height: 1.6; color: rgb(51, 51, 51); font-family: Oswald, sans-serif; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; white-space: normal; background-color: rgb(255, 255, 255); text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial;\"><span style=\"font-family: Verdana, Geneva, sans-serif; font-size: 12pt;\"><a href=\"https://www.cmegroup.com/markets/agriculture/livestock/live-cattle.quotes.html\" style=\"box-sizing: inherit; max-height: 1e+06px; background-color: transparent; color: rgb(23, 79, 134); text-decoration: underline; font-weight: 400;\">CATTLE FUTURES</a>. Futures posted gains as fed prices and the cutout stabilized with a smaller slaughter volume for the week.</span></p><p style=\"box-sizing: inherit; max-height: 1e+06px; letter-spacing: 0.5px; margin: 0px 0px 1rem; font-size: 19px; line-height: 1.6; color: rgb(51, 51, 51); font-family: Oswald, sans-serif; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; white-space: normal; background-color: rgb(255, 255, 255); text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial;\"><span style=\"font-family: Verdana, Geneva, sans-serif; font-size: 12pt;\">B<a href=\"https://www.ams.usda.gov/mnreports/ams_3492.pdf\" style=\"box-sizing: inherit; max-height: 1e+06px; background-color: transparent; color: rgb(23, 79, 134); text-decoration: underline; font-weight: 400;\">enchmarking</a>. On Tuesday of each week, USDA releases a weighted average price report for all cattle sold the previous week. The report summarizes the distributed price levels for each category of sale such as Negotiated/Formula/Forward Contracts. Beef producers are able to measure the marketing price for their cattle compared to the national averages.</span></p><p style=\"box-sizing: inherit; max-height: 1e+06px; letter-spacing: 0.5px; margin: 0px 0px 1rem; font-size: 19px; line-height: 1.6; color: rgb(51, 51, 51); font-family: Oswald, sans-serif; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; white-space: normal; background-color: rgb(255, 255, 255); text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial;\"><span style=\"font-family: Verdana, Geneva, sans-serif; font-size: 12pt;\">The <a href=\"https://www.ams.usda.gov/mnreports/ams_2700.pdf\" style=\"box-sizing: inherit; max-height: 1e+06px; background-color: transparent; color: rgb(23, 79, 134); text-decoration: underline; font-weight: 400;\">Comprehensive Fed Cattle Weekly Report</a> offers the most current information on the current status of fed cattle being harvested. The report is published each Tuesday and includes the previous week’s change in carcass weights and quality grading. The latest report shows carcass weights at 927# up 3# from prior week and 32# heavier than last year. Carcass weights will be fundamental in determining total beef production. The combined steer and heifer weights can easily be influenced when the proportion of steers to heifers in the weekly slaughter changes. Quality grade was 1.0% higher at 81.80%. This was 2% over last year.</span></p><p style=\"box-sizing: inherit; max-height: 1e+06px; letter-spacing: 0.5px; margin: 0px 0px 1rem; font-size: 19px; line-height: 1.6; color: rgb(51, 51, 51); font-family: Oswald, sans-serif; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; white-space: normal; background-color: rgb(255, 255, 255); text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial;\"><span style=\"font-family: Verdana, Geneva, sans-serif; font-size: 12pt;\"><a href=\"https://www.ams.usda.gov/mnreports/nw_ls196.txt\" style=\"box-sizing: inherit; max-height: 1e+06px; background-color: transparent; color: rgb(23, 79, 134); text-decoration: underline; font-weight: 400;\">The Weekly Steer and Heifer Grading Report </a>is indicative of regional supplies of choice and prime cattle and often is determinative of regional differences is live price. The report is also reflective of the current status of fed cattle offerings in each area.</span></p><p style=\"box-sizing: inherit; max-height: 1e+06px; letter-spacing: 0.5px; margin: 0px 0px 1rem; font-size: 19px; line-height: 1.6; color: rgb(51, 51, 51); font-family: Oswald, sans-serif; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; white-space: normal; background-color: rgb(255, 255, 255); text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial;\"><span style=\"font-family: Verdana, Geneva, sans-serif; font-size: 12pt;\"><a href=\"https://www.ams.usda.gov/mnreports/ams_2480.pdf\" style=\"box-sizing: inherit; max-height: 1e+06px; background-color: transparent; color: rgb(23, 79, 134); text-decoration: underline; font-weight: 400;\">Forward Cattle Contracts</a>: Forward contracts will always bear some relationship to the corresponding futures month closest to the delivery month for the cattle. Basis levels will move up and down as processors want to add to forward contracts or not. The driver in forward purchases of cattle will always be forward sales of beef. Packers will always be willing to take a price risk off the producer’s plate in return for an extra margin. </span></p><p style=\"box-sizing: inherit; max-height: 1e+06px; letter-spacing: 0.5px; margin: 0px 0px 1rem; font-size: 19px; line-height: 1.6; color: rgb(51, 51, 51); font-family: Oswald, sans-serif; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; white-space: normal; background-color: rgb(255, 255, 255); text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial;\"><span style=\"font-family: Verdana, Geneva, sans-serif; font-size: 12pt;\">Formula and Negotiated Grids. <a href=\"https://www.ams.usda.gov/mnreports/ams_3492.pdf\" style=\"box-sizing: inherit; max-height: 1e+06px; background-color: transparent; color: rgb(23, 79, 134); text-decoration: underline; font-weight: 400;\">The Price and Distribution Report </a>delineates the various selling methods and net results. The <a href=\"https://mymarketnews.ams.usda.gov/Cattle_Contract_Library\" style=\"box-sizing: inherit; max-height: 1e+06px; background-color: transparent; color: rgb(23, 79, 134); text-decoration: underline; font-weight: 400;\">Cattle Contracts Report</a> details the percent of contracts by volume of cattle and by number of contracts for selling cattle. Formula selling that was once the largest marketing method and still is, but is losing ground to negotiated grids where the premiums and discounts are set but the base price is negotiated.</span></p><div style=\"box-sizing: border-box; max-height: 1e+06px; display: flex; margin-bottom: 1.75em; flex-wrap: nowrap; align-items: center; gap: 2em; color: rgb(51, 51, 51); font-family: Oswald, sans-serif; font-size: 19px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; white-space: normal; background-color: rgb(255, 255, 255); text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial;\"><div style=\"box-sizing: inherit; max-height: 1e+06px; flex-grow: 0; min-width: 0px; word-break: break-word; overflow-wrap: break-word; margin: 0px; flex-basis: 50%;\"><span style=\"font-family: Verdana, Geneva, sans-serif; font-size: 12pt;\"><iframe src=\"https://embeds.agcenter.com/cattlereportchart/choice_cutout\" style=\"box-sizing: inherit; max-height: 75vh; width: 551px; min-height: 55px; height: 55px; border: none;\"><span class=\"fr-mk\" style=\"display: none;\"> </span></iframe></span></div><div style=\"box-sizing: inherit; max-height: 1e+06px; flex-grow: 0; min-width: 0px; word-break: break-word; overflow-wrap: break-word; margin: 0px; flex-basis: 50%;\"><span style=\"font-family: Verdana, Geneva, sans-serif; font-size: 12pt;\"><iframe src=\"https://embeds.agcenter.com/cattlereportchart/select_cutout\" style=\"box-sizing: inherit; max-height: 75vh; width: 551px; min-height: 55px; height: 55px; border: none;\"><span class=\"fr-mk\" style=\"display: none;\"> </span></iframe></span></div></div><p style=\"box-sizing: inherit; max-height: 1e+06px; letter-spacing: 0.5px; margin: 0px 0px 1rem; font-size: 19px; line-height: 1.6; color: rgb(51, 51, 51); font-family: Oswald, sans-serif; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; white-space: normal; background-color: rgb(255, 255, 255); text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial;\"><span style=\"font-family: Verdana, Geneva, sans-serif; font-size: 12pt;\"><a href=\"https://www.ams.usda.gov/mnreports/lswbfrtl.pdf\" style=\"box-sizing: inherit; max-height: 1e+06px; background-color: transparent; color: rgb(23, 79, 134); text-decoration: underline; font-weight: 400;\">Beef Feature Activity Index.</a></span></p><p style=\"box-sizing: inherit; max-height: 1e+06px; letter-spacing: 0.5px; margin: 0px 0px 1rem; font-size: 19px; line-height: 1.6; color: rgb(51, 51, 51); font-family: Oswald, sans-serif; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; white-space: normal; background-color: rgb(255, 255, 255); text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial;\"><span style=\"font-family: Verdana, Geneva, sans-serif; font-size: 12pt;\">The attention of the market will turn to the middle meats as the holiday season approaches. Beef features will be highlighted by the ribs that will be popular for holiday fare.</span></p><p style=\"box-sizing: inherit; max-height: 1e+06px; letter-spacing: 0.5px; margin: 0px 0px 1rem; font-size: 19px; line-height: 1.6; color: rgb(51, 51, 51); font-family: Oswald, sans-serif; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; white-space: normal; background-color: rgb(255, 255, 255); text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial;\"><span style=\"font-family: Verdana, Geneva, sans-serif; font-size: 12pt;\"><a href=\"https://www.ams.usda.gov/mnreports/lsddcbs.pdf\" style=\"box-sizing: inherit; max-height: 1e+06px; background-color: transparent; color: rgb(23, 79, 134); text-decoration: underline; font-weight: 400;\">The Cutout</a>. The cutout seemed to find support following weak demand this past week. The prices of primals will change moving into the holiday season. The grind will receive less attention and the middle meats will be more in demand.</span></p><p style=\"box-sizing: inherit; max-height: 1e+06px; letter-spacing: 0.5px; margin: 0px 0px 1rem; font-size: 19px; line-height: 1.6; color: rgb(51, 51, 51); font-family: Oswald, sans-serif; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; white-space: normal; background-color: rgb(255, 255, 255); text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial;\"><span style=\"font-family: Verdana, Geneva, sans-serif; font-size: 12pt;\">Recent losses were mainly driven by losses of value in the chucks. The end meats have fluctuated with the price of the grind. The chuck and rounds are sometimes used to shore up supplies of lean meat used for hamburger packages. Quality grade becomes unimportant because the lean meat is combined with varying percentages of fat. The recent increase in the choice/select spread will provide some margin improvement opportunities for processors.</span></p><p style=\"box-sizing: inherit; max-height: 1e+06px; letter-spacing: 0.5px; margin: 0px 0px 1rem; color: var(--wp--preset--color--vivid-cyan-blue) !important; font-size: 1.9rem; line-height: 1.6; font-family: Oswald, sans-serif; font-style: normal; font-variant-ligatures: normal; fon