Monday markets
Coming out of the Christmas holiday and headed toward New Year’s, the cattle market was lower.
Live cattle futures were lower, with the December contract down 25 cents to $137.30 and the February contract down 35 cents to $139.27.
Cash trade was nonexistent today, with only 35 head sold. On the formula side, a total of 32,700 head averaging 907 lbs. sold for an average of $219.73.
Cash trade through the week of Christmas totaled only 36,779 head. Live steers averaged $135.60, and dressed steers averaged $217.32.
“Last week, the cattle that sold early in the week saw the lowest prices the market had to offer and, by Wednesday’s arrival, packers were willing to give a little more to secure the cattle they needed,” remarked ShayLe Stewart, DTN livestock analyst, in her midday comments.
“With the market able to push packers into paying higher prices at midweek, the market stands an excellent chance at trading at least steady this week if not $1 higher.”
Slaughter for the day is estimated at 116,000 head, a few thousand head below the same time a week earlier. Friday’s slaughter was about 10,000 head, and there was no Saturday slaughter due to the holiday. Slaughter for the week is estimated at 488,000 head. Actual slaughter through Dec. 11 totaled 667,700 head.
Boxed beef prices were slightly higher on 116 loads, with the Choice cutout up $1.65 to $264.59 and the Select cutout up $2.23 to $255.18.
Feeder cattle
Feeder cattle futures were also lower, with the January contract down $1.05 to $162.40 and the March contract down 47 cents to $163.27. The CME Feeder Cattle Index lost $1.14 to close at $159.14.
Corn futures rallied, and the March and May contracts each gained 9 cents to close at $6.14 and $6.16, respectively.
“From now until after the new year, sale barns mostly take the two weeks off to rest up and take a much-needed break. There will be some replacement female sales here and there, but by and large the feeder cattle market won’t see a sizeable test of calves/feeders sell until after the new year,” Stewart said.
“This negatively affects the CME Feeder Cattle Index and leaves the futures complex to fend for itself. And, while the market was able to trade mostly higher last week, doing that two weeks in a row is a tough row to hoe.” — Anna Miller, WLJ managing editor
