Wednesday markets
“Following the strong trade that the cattle contracts saw earlier in the week, traders have grown distant from the live cattle and feeder cattle contracts and most likely are waiting until after the first of the year to see where the market’s true direction lays,” remarked DTN Livestock Analyst ShayLe Stewart in her Wednesday afternoon markets comments.
Cash cattle trade gained some ground Wednesday with 12,377 head sold. Live cattle sold from $109-112 and dressed steers sold between $175-176. The Fed Cattle Exchange hosted their weekly online sale, but was unable to secure many bids. Out of 1,015 head offered, 194 head sold for an average of $111.
Live cattle futures have traded mostly sideways: The December contract closed at $112.12 and the February contract at $114.45 on Wednesday—within a dollar of the prior Wednesday’s close.
Boxed beef prices hit their seasonal low and are beginning to climb higher again. The Choice cutout settled at $210.53 and the Select cutout was at $199.86 Wednesday afternoon.
Slaughter as of Wednesday was at 352,000 head, with a big New Year’s Eve and Saturday slaughter expected. Packer margins are still significant at $273.40, but nearly half as much as a month ago, according to the Sterling Beef Profit Trackers.
Feeder cattle
Corn prices are trading at a six-year high, but feeder cattle are continuing to hold their ground—although starting to slip lower.
“The pressure from rising feed costs continues to worry feedlots but once the market turns to 2021 and regains some normalcy following the holiday jitters, it will become more apparent how real the corn market’s price levels are,” Stewart said.
As of Wednesday, the March corn contract was trading at $4.74. Feeder cattle were trading all week around $140, but the January contract closed at $138.52 and the March contract at $139.75. The CME Feeder Cattle Index was reported at $138.71.
Kansas: Winter Livestock in Dodge City sold 395 head Wednesday. Compared to two weeks earlier, feeder steers 400-750 lbs. sold steady on light receipts. Feeder steers 750-900 lbs. sold $2-5 higher. Feeder heifers 350-800 lbs. sold steady on light receipts. Benchmark steers averaging 785 lbs. sold between $144.75-145.25, and averaged $144.90. — Anna Miller, WLJ editor
