The first full trading week of the year saw green on the board, but lighter cash trade volumes.
Live cattle futures traded higher from New Year’s Eve through Thursday, Jan. 8. The February contract gained about $5 to close at $235.27, and the April contract gained about $4 to close at $236.22.
“Given the fact that day to day there is little change in open interest and volume remains modest, one might deduce that much of the daily activity is made up of day-trading algos,” wrote Cassie Fish, market analyst, in The Beef on Thursday.
Cash trade through Thursday totaled about 10,000 head. Live steers sold from $228-232, and dressed steers sold from $363-365.
“With packer margins historically red, the packer is in no mood to chase fed cattle prices higher this week, despite bullish cattle feeders,” Fish said Wednesday.
Cash trade for the week ending Jan. 4 totaled 43,987 head. Live steers sold for $231.71, and dressed steers sold for $360.62.
Slaughter through Thursday totaled about 465,000 head, compared to 325,000 head a week earlier (holiday-shortened week). Total slaughter for a week earlier is projected at 474,000 head. Actual slaughter for the week ending Dec. 27 was 425,745 head. The average steer dressed weight was 982 lbs.
Boxed beef prices were higher over the week. The Choice cutout gained about $8 to close at $356.79, and the Select cutout gained about $9 to close at $352.06.
“This is seasonally expected and prices ought to be on firm footing for at least two more weeks,” Fish said. “Small slaughter schedules, as packers fight deeply red ink, appear to be aiding in the rally more than aggressive demand.”
Feeder cattle
Feeder cattle futures made immense gains over the week. The January contract gained about $12 to close at $362.47, and the March contract gained about $13 to close at $357.72.
The CME Feeder Cattle Index gained about $15 to close at $363.15.
Corn futures made some slight gains over the week. The March contract gained 6 cents to close at $4.46, and the May contract also gained 6 cents to close at $4.54.
“It will be especially interesting to watch feeder cattle sales early this week, as the last real test seen in the countryside was the week before Christmas, and since then, the futures market has gained substantial ground,” ShayLe Stewart, DTN livestock analyst, said on Monday.
Three days later, she wrote, “Demand in the countryside remains strong as buyers are busying filling orders, as the market was quiet over the last two weeks.”
Missouri: Joplin Regional Stockyards in Carthage sold 14,000 head on Monday. Compared to a week earlier, feeder steers sold $5-10 higher at the mid-session. Heavy four-weight and light five-weight steers sold up to $45 higher. Feeder heifers sold $5-15 higher. Benchmark steers averaging 762 lbs. sold from $346-375, averaging $362.32.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 9,800 head on Monday. Compared to the last sale held in December, at the mid-session, feeder steers sold $3-8 higher. Feeder heifers sold $10-15 higher. Steer calves sold $15-25 higher. Heifer calves under 500 lbs. sold mostly steady, over 500 lbs. sold $20 higher. Benchmark steers averaging 777 lbs. sold from $340-367.50, averaging $360.19.
South Dakota: Sioux Falls Regional in Worthing sold 6,215 head on Monday. Compared to the previous auction two weeks earlier, steer calves under 800 lbs. were steady to firm, and 800 lbs. and heavier were $5-20 higher. Heifer calves under 700 lbs. sold steady, with instances of $10-15 higher on 600-650 lbs., and over 700 lbs. were $5-20 higher. Yearling feeder steers were steady to firm, and yearling feeder heifers sold $2 higher. Benchmark steers averaging 775 lbs. sold from $352.50-386, averaging $373.56.
Wyoming: Winter Livestock in Riverton sold 4,068 head on Tuesday. Higher prices were reported on all classes of cattle. Benchmark steers averaging 728 lbs. sold from $384-402.50 and averaged $388.02. — Anna Miller Fortozo, WLJ managing editor
