Cattle markets charged into the new year with bullish momentum, setting an optimistic tone for 2025.
“Well, if today’s trade is any inclination to what the rest of the year is going to be … buckle up friends!” exclaimed ShayLe Stewart, DTN livestock analyst, in her midday Thursday comments.
Live cattle futures were several dollars higher in the new year. The February contract gained more than $6 to close at $193.60, and the April contract also gained more than $6 to close at $196.05.
Market comparisons for the week are based on the Monday, Dec. 22 report, which was the last weekly markets article reported by WLJ before the holidays.
Cash trade through Thursday totaled just over 10,000 head. Live steers sold from $195-199.50, and dressed steers sold from $310-315.
“Packers were needing to purchase cattle following three weeks of very light purchasing volume in the cash markets,” the Cattle Report said on Thursday. “Thursday kicked off the attempt to rebalance and the need pushed all cash prices higher.”
Cash trade through Dec. 29 totaled 44,027 head. Live steers averaged $194.98, and dressed steers averaged $306.94.
Slaughter through Thursday totaled about 350,000 head, compared to 275,000 head a week earlier during Christmas week. Total slaughter for the holiday-shortened week is estimated at 434,000 head. Actual slaughter for the week ending Dec. 21 was 615,629 head. The average steer dressed weight was 953 lbs., 1 lb. above the prior week.
“If packers are unable to secure enough inventory, then the only recourse is to continue to limit production,” wrote Cassie Fish, market analyst, in The Beef on Thursday. “Last week’s estimated slaughter was a low 434k head and this week’s is estimated at no higher than 515k head with the possibility of sub-500k head, which hasn’t occurred since 2014 and 2015 for this same week.”
Boxed beef prices climbed higher, up $7.50 on the Choice cutout to $323.48 and up nearly $7.50 on the Select cutout to $294.23.
Feeder cattle
Feeder cattle futures gained several dollars to begin the new year. The January contract rose nearly $10 to close at $266.47, and the March contract increased $10.20 to $266.20.
The CME Feeder Cattle Index lost $1.23 to close at $261.77.
Corn futures also climbed higher, up 12 cents to $4.59 on the March contract and up 14 cents on the May contract to $4.67.
“It will be especially interesting to watch feeder cattle sales over the next two weeks, as buyer demand will likely be strong given that the market has been on a holiday hiatus and buyers will likely have large orders to fill,” Stewart said.
Most auction markets were still on holiday for the week and are set to come back during the second week of the year.
Missouri: Joplin Regional Stockyards in Carthage sold 12,000 head on Monday. Compared to the last sale two weeks earlier, feeder steers sold $2-6 higher and feeder heifers sold $2 lower to $6 higher during the mid-session. Benchmark steers averaging 770 lbs. sold from $253-281, averaging $265.58.
Nebraska: Tri-State Livestock in McCook sold 1,776 head on Monday. There was no accurate comparison due to the lack of a recent auction. Benchmark steers averaging 778 lbs. sold for $272.50-273.25, averaging $272.71. — Anna Miller, WLJ managing editor
