Friday markets
As ShayLe Stewart, DTN livestock analyst put it: “It’s a slow and lethargic day for the cattle contracts, as the market can’t summon an ounce of support.”
She continued, “While you may be pressured into thinking that the market (has) turned bearish, this is normal for the cattle market over the holidays, and real interest isn’t likely to pick up until after the new year.”
Live cattle futures were lower today. The December contract lost 52 cents to close at $134.75 and the February contract lost 62 cents to close at $136.42.
Cash trade today was minimal, with only 2,764 head sold. Live steers sold between $137-138 and dressed steers sold between $218-219. On the formula side, a total of 24,100 head averaging 906 lbs. averaged $224.19. Cash trade for the week totaled about 47,000 head.
Slaughter for the day is projected to reach 120,000 head. With Saturday’s slaughter expected to reach 58,000 head, the week’s total slaughter is estimated to be about 657,000 head. This is about 13,000 head behind the same time a week earlier, which is to be expected with holiday demand decreasing.
Boxed beef prices were fairly steady on 107 loads, with the Choice cutout up 4 cents to $263.01 and the Select cutout up 14 cents to $248.28.
“Boxes are printing higher again, but that’s likely stemming from the lack of production that took place on Wednesday because of the windstorm that limited production in some Midwest plants,” Stewart said. “Packers are now playing catch up, as they have product spoken for, and need to get it out the door.”
Feeder cattle
Feeder cattle futures lost several dollars. The January contract was down $2.32 to $160.25 and the March contract lost $1.62 to close at $161.70. The CME Feeder Cattle Index lost 4 cents to close at $161.
Corn futures were slightly higher, with the March contract up 2 pennies to $5.93 and the May contract up a penny to $5.94.
“If someone could pull the plug on the corn market’s rally and add a little gust of support to the live cattle complex, the feeder cattle contracts may stand a chance at rallying, but given the holiday slug that’s already taken over the cattle market, feeders will likely trade sideways to somewhat lower throughout the holidays,” Stewart said.
Nebraska: Ogallala Livestock Auction in Ogallala sold 5,965 head Thursday. Compared to last week, steers sold $2-6 higher and heifers sold $3-6 higher. Benchmark steers averaging 764 lbs. sold between $161.50-176, averaging $169.29. — Anna Miller, WLJ managing editor
