The cattle market traded steady to higher over the week, waiting to find fundamental support to push prices higher.
Live cattle futures traded higher. The February contract gained less than a dollar to close at $236.05, and the April contract gained a little over $2 to close at $238.42.
“It’s very apparent that the market desires to trade higher, but until traders can see immediate fundamental support in the form of stronger fed cash cattle trade, it’s unlikely that they’ll boldly advance the market until then,” said ShayLe Stewart, DTN livestock analyst, in her Thursday comments. “At this point, both bids and asking prices remain elusive.”
Cash trade through Thursday totaled only about 2,000 head. Live steers sold for $232, and a trend was not noted for dressed steers.
Cash trade through the week ending Jan. 11 totaled 81,146 head. Live steers averaged $232.03, and dressed steers averaged $365.07.
Slaughter through Thursday totaled about 469,000 head, compared to 465,000 head a week earlier. Total slaughter for a week earlier is estimated at 553,000 head. Actual slaughter through the week ending Jan. 3 was 468,331 head. The average steer dressed weight was 989 lbs., 7 lbs. above the previous week.
“The world looks different for the packer than the cattle feeder today,” wrote Cassie Fish, market analyst in The Beef, on Thursday. “As packers fight record red ink, production schedules have been slashed and wholesale beef values have modestly responded.”
Boxed beef prices gained several dollars over the week. The Choice cutout gained nearly $4 to close at $360.77, and the Select cutout gained more than $7 to close at $359.71.
There are highly anticipated reports to be released later this month, Fish remarked. USDA’s first Cattle on Feed report for the year is due, along with the biannual Cattle inventory report that will show national inventory numbers.
“Both reports will confirm what everyone already knows—2026 will see the tightest fed cattle supplies in a decade and rebuilding—if it is occurring at all, is likely quite modest,” Fish said.
Feeder cattle
Feeder cattle futures continued their gains over the week. The January contract gained about $6 to close at $368.42, and the March contract gained about $7 to close at $364.55.
“Feed costs have remained in feeders’ favor over the last year as overall it’s been affordable, but with feeder cattle prices so high, buyers need that guarantee as their breakevens on these calves is risky, and if feed prices were to grow more expensive, a lot of people could be in a tough position given how much they are simply paying for the calves and feeders they desire to feed out,” Stewart said on Tuesday.
The CME Feeder Cattle Index gained about $6.50 to close at $369.69.
Corn futures traded lower over the week. The March contract lost 26 cents to close at $4.20, and the May contract lost 27 cents to close at $4.27.
Colorado: Winter Livestock in La Junta sold 5,908 head on Wednesday. Compared to the last auction, feeder steers sold $3-6 higher, with instances of sharply higher across all weight classes. Feeder heifers sold $8-9 higher, with instances of sharply higher. Benchmark steers averaging 766 lbs. sold for $367-377.75, averaging $372.83.
Missouri: Joplin Regional Stockyards sold 14,000 head on Monday. Compared to a week earlier, four-weight steers sold $20 higher and heavier weights sold from $10 lower to $5 higher. Feeder heifers sold from $7 lower to $8 higher. Benchmark steers averaging 776 lbs. sold from $350-373, averaging $359.77.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 11,800 head on Monday. Compared to a week earlier, cattle sold steady to $3 lower. Benchmark steers averaging 777 lbs. sold from $355-370, averaging $365.69.
South Dakota: Sioux Falls Regional in Worthing sold 5,330 head on Monday. Compared to the previous auction, feeder steers under 650 lbs. sold mostly steady, with instances of $10-15 higher on 500-550 lbs. Steers 650-850 lbs. sold $5-13 higher and over 850 lbs. were $2-3 higher. Feeder heifers under 700 lbs. sold $10-15 higher, with instances of $30 higher under 500 lbs. and over 700 lbs. were steady to $5 higher. Benchmark steers averaging 776 lbs. sold from $364-399 and averaged $384.19. — Anna Miller Fortozo, WLJ managing editor
