The cattle market saw record-breaking prices over the week, encouraged by robust consumer demand and holding strong amid wintry temperatures.
Live cattle futures were several dollars higher, finally crossing over that long-awaited $200 mark. The February contract gained $4.50 to close at $201.10, and the April contract gained $3.05 to close at $200.72.
“Thursday’s momentum is especially exhilarating as traders are largely making this move on their own as midday boxed beef prices are lower, and the cash cattle market still hasn’t seen any significant trade development,” wrote ShayLe Stewart, DTN livestock analyst, in her midday Thursday comments.
Cash trade was limited through Thursday afternoon. Volume totaled a little over 10,000 head. Live steers sold from $201-206, and dressed steers sold for $322.
Cash trade for the week ending Jan. 19 totaled 80,956 head. Live steers averaged $203.72, and dressed steers averaged $322.01.
“In the last four weeks, the cash fed cattle market has exploded higher,” wrote Cassie Fish, market analyst, in The Beef on Thursday. “December averaged between $194 and $194, and this week traded from $202 to $206.”
The national weekly direct beef type price distribution for the week of Jan. 13-20 was the following on a live basis:
• Negotiated purchases: $203.64.
• Formula net purchases: $202.76.
• Forward contract net purchases: $188.38.
• Negotiated grid net purchases: $203.45.
On a dressed basis:
• Negotiated purchases: $321.97.
• Formula net purchases: $320.63.
• Forward contract net purchases: $303.05.
• Negotiated grid net purchases: $317.52.
Slaughter through Thursday was about 486,000 head, compared to 488,000 head a week earlier. Total slaughter for a week earlier was estimated at 603,000 head. Actual slaughter for the week ending Jan. 11 was 591,422 head. The average steer dressed weight was 962 lbs., 3 lbs. above a week earlier.
Boxed beef prices trended lower over the week. The Choice cutout lost $2.45 to close at $330.96, and the Select cutout lost $2.17 to close at $317.21.
Stewart said boxed beef prices need to “remain a top priority in monitoring in the days to come because if demand weakens, some of the market’s momentum will inevitability dissipate.”
Fish echoed Stewart’s sentiments. “The much anticipated USDA Cattle inventory report on Jan. 31 will show inventory down only 0.5%. Make no mistake, this bull market owes everything to consumer beef demand,” she said. “And with wholesale beef prices record high to start 2025, retail beef price hikes are on the way next.”
Feeder cattle
Feeder cattle futures were several dollars higher over the week. The January contract gained $3.62 to close at $277, and the March contract gained $6.35 to close at $274.07.
“Aside from the technical support which the market is currently receiving, it’s also helpful that feeder cattle demand remains incredible in the countryside,” Stewart said.
She continued that although much of the Midwest and South are dealing with extremely cold weather, buyer demand hasn’t weakened whatsoever.
The CME Feeder Cattle Index closed at $278.18, higher by 14 cents.
Corn futures continue to gain momentum, nearly reaching the $5 mark. The March contract gained 15 cents to close at $4.89, and the May contract gained 16 cents to close at $4.99.
Iowa: Russell Livestock in Russell sold 3,992 head on Monday. Compared to the previous auction, steers over 550 lbs. sold mostly $3-20 lower, while steers less than 550 lbs. sold with a higher undertone. Heifers sold mostly $8-24 lower. Benchmark steers averaging 718 lbs. sold between $279-305.25, averaging $294.69.
Missouri: Joplin Regional Stockyards in Carthage sold 13,000 head on Monday. Compared to a week earlier, feeder steers sold steady with feeder heifers selling from $2 lower to $6 higher. Benchmark steers averaging 770 lbs. sold from $264-276.50, averaging $269.03.
Montana: Miles City Livestock Commission in Miles City sold 813 head on Tuesday. Compared to the previous auction, feeder steers under 550 lbs. sold mostly $10-20 lower in a narrow comparison. Steers over 550 lbs. sold steady. Heifer calves sold steady in a narrow comparison, except 600-649 lbs. heifers sold mostly $4-8 higher. A group of steers averaging 630 lbs. sold for $314-326.50, averaging $323.67.
Nebraska: Huss Livestock in Kearney sold 3,427 head on Wednesday. Compared to the last auction, steers under 800 lbs. sold unevenly and steers 800-900 lbs. sold $3 higher. Heifers under 700 lbs. sold unevenly and over 700 lbs. sold $3 higher. Benchmark steers averaging 722 lbs. sold for $292-307.75, averaging $302.02.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 7,500 head on Monday. Compared to a week earlier, feeder steers over 700 lbs. sold $2-4 lower and under 700 lbs. sold $104 higher. Feeder heifers sold $3-7 lower. Steer calves sold steady to $4 higher. Heifer calves sold $2-7 higher. Benchmark steers averaging 770 lbs. sold from $262-273, averaging $270.31.
South Dakota: Sioux Falls Regional Livestock in Worthing sold 6,306 head on Monday. Compared to the last auction, feeder steers and heifers traded unevenly steady. Benchmark steers averaging 776 lbs. sold for $270-291, averaging $283.30. — Anna Miller, WLJ managing editor
