Cattle futures were higher, with trade light for the week before the holiday weekend. Traders were also trying to be proactive ahead of Friday’s release of the Cattle on Feed report.
“For the week before Christmas, there continues to be a lot going on in the cattle market,” DTN wrote in its midday comments on Tuesday. “Overall volume is expected to remain generally sluggish through the end of the year, with markets closed for a day next week and the following week for the Christmas and New Year’s holidays. However, this Friday will also be the release of the December Cattle on Feed (COF) report.”
Pre-report estimates for the COF report for feedlots with 1,000 head or greater are 102.2% for cattle on feed in December. Placements in November are estimated to be 96.2%, and marketings for November are predicted at 93.2%.
Live cattle futures were higher after some volatility, with the December contract up a little over $3 to $170.55 and the February contract up 75 cents to $168.67.
Cash trade continued to be fairly inactive, with only about 27,500 head traded as of Thursday. Live steers sold from $170-171, and dressed steers sold from $269.50-270.75.
“Light trading occurred across the northern Plains at $1-3 higher prices,” the Cattle Report wrote on Thursday. “Live prices were mainly $170-$171 and most dressed prices at $270. In the South, no trades were reported with most asking prices at $173-175. The next three weeks will feature smaller slaughter volumes due to holiday schedules.”
Cash trade for the week ending Dec. 17 totaled 44,188 head. Live steers averaged $168.65, and dressed steers averaged $267.74.
Slaughter through Thursday was an estimated 497,000 head, 8,000 head below a week earlier.
Slaughter for the prior week is projected to be 649,000 head. Actual slaughter for the week ending Dec. 9 was 638,200 head. The average dressed steer weight was 939 lbs., 1 lb. below the prior week.
Boxed beef prices were mixed, with the Choice cutout down 51 cents to $291.13 and the Select cutout up $2.06 to $261.27.
Feeder cattle
Feeder cattle futures also rallied over the week, with the January contract up $2.35 to $221.70 and the March contract up $3.25 to $223.37. The CME Feeder Cattle Index was up $4.47 to $219.80.
“The market remains generally oversold, but the combination of light volume through the end of the year and positioning in front of the Cattle on Feed report is helping to draw increased support to the entire market complex,” DTN wrote in Wednesday’s closing comments.
Corn futures were lower, with the March and May contracts down 7 cents each to $4.72 and $4.85, respectively.
Missouri: Joplin Regional Stockyards in Carthage sold 10,363 head on Monday. Compared to the last auction, feeder steers sold $7-18 higher. Feeder heifers sold $5-17 higher. Benchmark steers averaging 766 lbs. sold between $215-238.50, averaging $233.04.
Nebraska: Tri-State Livestock in McCook sold 2,052 head on Monday. Compared to the previous auction, steers sold steady to $8 higher and heifers were $6-14 higher. Benchmark steers averaging 754 lbs. sold between $236-239, averaging $238.01.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 5,064 head on Monday. Compared to the last auction, feeder steers sold $2-5 higher. Feeder heifers traded steady. Steer calves sold $4-8 higher, and heifer calves were mostly steady. Benchmark steers averaging 775 lbs. sold between $214-230.50, averaging $223.67. — Charles Wallace, WLJ contributing editor
