The cattle market complex continued to dance on either side of the market, with most impacts a result of the ever-growing price of corn. The cash cattle market remained quiet, although a higher volume of cattle was noted.
Live cattle contracts traded lower throughout the week. On Thursday, the February contract settled at $112.07 and the April contract at $117.22.
Cash cattle trade was slow toward the beginning of the week, but picked up in numbers on Wednesday. Asking prices hovered around the $106-110 mark, although some cattle in the South sold for $112. Dressed cattle prices ranged from $171-173 all week.
“Even with boxed beef prices being higher, the cash market sits idly as packers are reluctant to spark too much interest in the cash market,” remarked ShayLe Stewart, DTN livestock analyst, in her Thursday comments. “With the trade that’s developed over the last two days, it’s appearing that the week’s cash trade could be essentially over other than a little clean up business here and there.”
Boxed beef prices traded higher throughout the week, with the Choice cutout closing Thursday at $213.37 and the Select cutout at $201.07, several dollars higher than the previous week’s cutout prices.
Slaughter numbers the week ending Jan. 8 are estimated at 651,000 head. Through Thursday, a total of 469,000 head had been processed, on trend with the week prior, but 20,000 head behind the same time last year.
Feeder cattle
After USDA’s latest World Agricultural Supply and Demand Estimates (WASDE) found corn stocks to be lower than expected, the price of corn skyrocketed 25 cents in a day. As of Thursday afternoon, the March corn contract was sitting at $5.34.
In response, feeder cattle contracts have traded back and forth, but mostly sideways. The January contract closed at $132.60 and the March contract at $133.37. Thursday’s CME Feeder Cattle Index was reported at $135.49.
“Feeders continue to count their blessings and are thankful that the demand in the countryside has been as strong as it has, but with buyers having restocked a lot of their empty pens many are worried about the weeks to come with corn prices showing no intentions of retracting,” Stewart commented.
The Livestock Marketing Information Center (LMIC) predicts USDA’s Cattle on Feed estimates for Jan. 1 will be lower in cattle on feed and placements, and higher in marketings. Katelyn McCullock, LMIC director, noted auction data showed a slight uptick, but was likely limited by the holidays. Feeder cattle imports were lower than from a year ago. McCullock expects the number of cattle on feed over 120 days to increase until the large number of placements in the third quarter of 2020 are marketed.
Colorado: Winter Livestock in La Junta sold 7,452 head Tuesday. Compared with the prior Tuesday: Steer calves under 500 lbs. sold steady with instances of $9 higher on 400-450 lbs.; five-weights sold $5-8 lower; six-weights sold $2-4 lower; seven-weights sold $3-5 lower; and over 800 lbs. sold $1-2 lower. Heifer calves under 400 lbs. sold $3-5 higher; 400-700 lbs. sold $2-5 lower, except 500-600 lbs. sold $5-8 lower; and over 700 lbs. sold mostly steady.
Iowa: Russell Livestock in Russell sold 4,536 head Monday. Compared to the sale prior, steers under 650 lbs. sold steady to $5 higher, and those over 650 lbs. were $1-4.50 lower. Heifers under 600 lbs. were $1.50-6.50 higher and the 600-750-lb. heifers were $1 lower to $1 higher. The 750-800-lb. heifers were $8 lower. Benchmark steers averaging 724 lbs. sold between $133.75-145, and averaged $139.70.
Kansas: Winter Livestock in Dodge City sold 4,283 head Wednesday. Compared to the last sale, feeder steers 400-950 lbs. sold $2-6 lower. Heifer calves 400-500 lbs. sold $1-2 higher. Feeder heifers 500-950 lbs. sold $3-7 lower. Benchmark steers averaging 729 lbs. sold between $132-140, and averaged $136.29.
Missouri: Joplin Regional Stockyards in Carthage sold 6,800 head Monday. Compared to the last sale, steers sold steady to $3 lower and heifers sold steady to firm. Benchmark steers averaging 723 lbs. sold between $133-140, and averaged $137.20.
Nebraska: Bassett Livestock Auction in Bassett sold 3,780 head Wednesday. Compared with the prior week, steers 500-700 lbs. traded steady to $12 lower and heifer offerings traded unevenly steady. Benchmark steers averaging 732 lbs. sold for $139-149, and averaged $144.41.
New Mexico: Roswell Livestock Auction in Roswell sold 1,121 head Monday. Compared to the last sale: Steer calves under 600 lbs. sold $2-4 higher; over 600 lbs. sold $3 higher on comparable quotes; a few 700-800 lbs. sold $5 lower. Heifer calves and feeders sold steady to $3 higher, except 300-400 lbs. sold $7-9 higher. Benchmark steers averaging 724 lbs. sold between $133-140, and averaged $136.25.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 11,000 head Monday. Compared to the sale prior, feeder steers and heifers sold steady to $2 higher, except 600-700-lb. steers sold $4-6 higher. Steer calves sold steady to $5 higher and heifer calves sold steady to $3 higher.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 5,456 head Monday. Compared to last week, feeder steers were $2-5 lower. Feeder heifers were $2-5 lower, with instances of $8 lower on 650-700 lbs. Benchmark steers averaging 762 lbs. sold between $128.50-138, and averaged $135.79.
Wyoming: Torrington Livestock in Torrington, WY, sold 8,459 head Wednesday. Compared to the last sale, yearling steers and heifers traded unevenly steady. Steer calves under 650 lbs. traded $4-7 higher. Steer calves over 650 lbs. traded unevenly steady. Heifer calves under 500 lbs. traded
$3-8 higher. Heifer calves over 500 lbs. traded unevenly steady. Benchmark steers averaging 717 lbs. sold between $140-148.25, and averaged $145.09. — Anna Miller, WLJ editor
