Live cattle futures were higher on mostly light trade, while feeder cattle futures were mixed, as packers and feeders were waiting for cash trade to develop. Boxed beef rose drastically for the second consecutive week, with the Choice cutout up over $14.
Live cattle futures closed higher for the week. The December contract was up $2.60 to $158.50, and the February contract was up $1.55 to $158.85.
“Up, up and away goes the live cattle complex as most of the nearby contracts stretch themselves to new contract highs,” ShayLe Stewart, DTN livestock analyst, wrote in Thursday’s midday comments. “The excellent demand in the boxed beef sector has given traders all the confidence they’ve needed to push the contracts higher yet again and it’s also giving feedlots the support they needed in order to demand stronger cash prices.”
Cash trade was light this week, with 12,300 head sold through Thursday. Live steers sold from $155-158, averaging $157.62, and dressed steers sold for an average of $248.91.
Cash trade for the week ending Dec. 25 was 44,051 head. Live steers averaged $156.19, and dressed steers averaged $248.95.
The national weekly direct beef type price distribution for the week of Dec. 19-26 was the following on a live basis:
• Negotiated purchases: $156.32.
• Formula net purchases: $157.80.
• Forward contract net purchases: $157.44.
• Negotiated grid net purchases: $160.52.
On a dressed basis:
• Negotiated purchases: $248.99.
• Formula net purchases: $252.90.
• Forward contract net purchases: $233.30.
• Negotiated grid net purchases: $249.30.
Slaughter through Thursday totaled 388,000 head, compared to 455,000 head a week earlier. Slaughter for the week ending Dec. 24 is estimated to be 562,000 head, 63,000 head under the previous week. Actual slaughter for the week ending Dec. 17 was 622,329 head (44.7% steers, 31.1% heifers). The average dressed steer weight was 927 lbs.
Boxed beef prices rose again for the second week in a row, with the Choice cutout up $14.20 to $279.41 and the Select cutout up $5.47 to $247.28.
The Daily Livestock Report noted the Choice beef cutout has spiked in the last few days, mainly in part due to the extreme winter weather. As the cold negatively impacts cattle in feedlots, the full effect on cattle will be seen in January, resulting in lower gains and delays in marketings.
Feeder cattle
Feeder cattle futures were mixed, with the January contract down 17 cents to $183.80 and the March contract up 32 cents to $186.77. The CME Feeder Cattle Index was up $2.01 to $179.84.
“The market will likely continue this steady sideways chop well through the first of the year until sale barns resume their normal schedule and demand for calves and feeders can help influence the market,” Stewart wrote on Wednesday. “The feeder cattle complex will be closely monitoring both cash cattle prices in the hopes that they turn higher and corn prices as any uptick in price affects the feeder’s cost of gains gravely.”
Corn contracts closed higher, with the March and May contracts up 19 cents a bushel to $6.79 for both.
Most sale barns were closed for the holidays.
Nebraska: Bassett Livestock Auction in Bassett sold 3,740 head on Wednesday. There was no recent test for an accurate comparison. Demand was good for all offerings, with several active buyers and active internet bidding. Benchmark steers averaging 774 lbs. sold from $185.50-199.50.— Charles Wallace, WLJ editor
