Tuesday markets
Futures rallied today, and although cash trade was steady to lower, this is to be expected during a holiday week.
Live cattle futures were able to find some gains, with the December contract up $1.05 to $135.52 and the February contract up 95 cents to $136.92.
There was some cash trade today, with 5,392 head selling steady at $135. Total cash trade through the week so far is about 9,000 head. Dressed steers sold for $215. On the formula side, a total of 22,300 head averaging 887 lbs. sold for $224.56.
“It is not unusual to see fed cattle prices soften as packer holiday needs decline,” remarked Cassie Fish, market analyst, in The Beef. “It is also not unusual to see fed cattle prices advance in January on through Q1, and that is in the cards as well for this market.”
The national weekly direct beef type price distribution for the week of Dec. 13-20 was the following on a live basis:
• Negotiated purchases: $137.72.
• Formula net purchases: $143.07.
• Forward contract net purchases: $137.91.
• Negotiated grid net purchases: $143.20.
On a dressed basis:
• Negotiated purchases: $218.31.
• Formula net purchases: $226.60.
• Forward contract net purchases: $205.87.
• Negotiated grid net purchases: $220.68.
Slaughter for the day is projected at 120,000 head, a couple thousand head short of the same time last week. To date this week, slaughter is estimated at 240,000 head.
Boxed beef prices were down on 116 loads, with the Choice cutout down 99 cents to $261.39 and the Select cutout down 75 cents to $249.92.
“Packer margins are still record wide and when including revenue from all boxed beef sales, last week netted over $300 per head,” Fish said.
Feeder cattle
Feeder cattle futures saw gains over $1, with the January contract up $1.65 to $160.85 and the March contract up $1.32 to $161.82. The CME Feeder Cattle Index was slightly lower, down 36 cents to $160.34.
“The rally comes as a pleasant surprise as the market was anticipating a week of entirely lower trade given that it’s the week of Christmas and the holidays usually blanket the market with a lethargic tone,” said ShayLe Stewart, DTN livestock analyst, in her midday comments.
Corn futures were not without their own gains, with each contract gaining 7 cents, bringing them to just under $6. The March contract closed at $5.98 and the May contract at $5.99.
New Mexico: Roswell Livestock Auction in Roswell sold 1,050 head on Monday. Compared to a week earlier, there was a very uneven market on steer and heifer calves, mostly $2-4 higher, with instances of $9-16 higher. Feeders over 600 lbs. sold $6 higher on comparable quotes. Benchmark steers averaging 709 lbs. sold between $144-155, averaging $152.23.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 2,522 head Monday. Compared to a week earlier, feeder steers 550 lbs. and under sold $1-4 higher, 550-650 lbs. sold $1-3 lower, 650-700 lbs. sold steady to $3 higher, 700-750 lbs. sold steady to $2 lower and 1,000-1,050 lbs. sold $4-6 lower. Feeder heifers 350-500 lbs. sold $1-3 lower, 500-650 lbs. sold $3-5 higher and 650-750 lbs. sold $1-5 lower. Benchmark steers averaging 787 lbs. sold between $155-162, averaging $156.58. — Anna Miller, WLJ managing editor
