Friday markets
Cash cattle trade did not develop by the end of the week, with only 1,290 head traded between $104-106. Dressed purchases moved at $168. Formula cattle saw some movement today, with 12,900 head averaging 875 lbs. and $176.96.
“Though the outlook on cash cattle prices looks bleak to many, the seasonal is for cash to strengthen by the last week of the year,” remarked Cassie Fish, market analyst, in The Beef.
What was lacking in cash cattle was gained in the futures contracts. December live cattle were up 83 cents to $108.75 and the February contract was up $1.40 to $113.25.
“It was uncertain early Friday morning if traders would continue to invest within the marketplace, but as the day has progressed, the interest and support has only strengthened,” reported DTN Livestock Analyst ShayLe Stewart in her midday livestock comments.
Boxed beef prices were down slightly on 131 loads, with the Choice cutout down 71 cents to $213.88 and the Select cutout down $2.76 to $195.71.
Slaughter for the day is projected at 118,000 head, bringing the week’s total to 592,000 head. Saturday slaughter is estimated to be 73,000 head, a few thousand head above usual trends.
Feeder cattle
Feeder cattle markets took today in good stride. The January contract gained $2.13 to $139.73 and the March contract was up $1.30 to $140.55.
“The market’s support has really solidified as earlier Friday morning there was some concern that pressure would keep the contracts from reaching higher levels, and with the corn market’s minute rally, the concern was valid,” Stewart said. “But as the morning has progressed, traders continue to invest within the sector, which is helping roll into the afternoon with excellent support.”
The corn contract gained 4 cents over the day, closing at $4.24; the highest level since late November. CME’s latest Feeder Cattle Index was reported yesterday, down 9 cents to $137.11.
Compared to last week, steers and heifers sold unevenly, ranging from mostly $5 lower to $5 higher.
Ogallala Livestock Auction in Ogallala, NE, sold 5,865 head yesterday. Compared to last week, steers under 600 lbs. sold $5 lower, with instances of $10 lower on flyweight calves; over 600 lbs. sold $2-9 higher. Heifer calves under 650 lbs. sold steady to $5 higher and over 650 lbs. sold steady to $1 lower. — Anna Miller, WLJ editor
