DTN Midday Livestock Comments
It’s a peaceful day where the livestock contracts are rallying into the afternoon, and the market isn’t overly concerned about much.
Live cattle
The live cattle contracts are keeping with their rally, even though the morning’s export report was weaker. The cash cattle market hasn’t seen any strong renewed interest, and with feedlots coming into this week extremely current, their desire to take subpar bids is slim to none.
I don’t foresee a lot more trade developing before the day’s close, even though a few bids have been offered in Nebraska at $135 live and $217 dressed.
The latest Cattle on Feed report was released today, which showed total cattle and calves on feed as of Dec. 1 at 12 million head, slightly below 2020. Placements were 4 percent higher at 1.97 million head. Marketings were 5 percent higher at 1.87 million head, the highest number for November on record.
December live cattle are up $0.90 at $136.65, February live cattle are up $1.40 at $138.77 and April live cattle are up $1.22 at $143.35.
Beef net sales of 12,000 metric tons (mt) for 2021 were down 30 percent from the previous week and 23 percent from the prior four-week average. The three largest buyers were China (3,800 mt), Japan (3,700 mt) and South Korea (2,800 mt).
Boxed beef prices are higher: Choice up $1.21 ($263.07) and Select up $2.06 ($252.89) with a movement of 64 loads (42.54 loads of choice 10.47 loads of select, 5.96 loads of trim and 5.47 loads of ground beef).
Feeder cattle
The feeder cattle contracts are rallying into Thursday afternoon as the live cattle complex lends some support amid the higher tick in corn prices. January feeders are up $0.87 at $162.65, March feeders are up $1.27 at $163.20, and April feeders are up $1.22 at $166.77.
The feeder cattle contracts support really lies in the hands of the live cattle market and the interest of traders—so long as the live cattle market continues to trade higher, the complex should be able to round out the day on a positive note. — ShayLe Stewart, DTN livestock analyst
The WLJ office will be closed tomorrow for Christmas. Market reports will resume Monday, Dec. 27. Merry Christmas to you and yours!
