Wednesday markets
Markets posted higher again today, giving hope to what the market will look like in the new year.
Live cattle futures posted higher today. The December contract gained 92 cents to close at $139.40, and the February contract gained $1.32 to close at $140.72.
There was some cash trade today, with 5,471 head sold between $140-141. Dressed steers sold between $222-226. Yesterday, there was an influx of cash trade during the late afternoon, bringing the total this morning to 66,461 head.
“Feedlots are hard pressed to get any cattle gone given they are extremely current on their showlists and they know packers are close to the knife,” remarked ShayLe Stewart, DTN livestock analyst, in her midday comments.
“The fact that the market is rallying as aggressively as it is this week bodes extremely well for the market next week and processing speeds will be back to normal and packers will need to get cattle on the books.”
Slaughter for the day is projected at 120,000 head, bringing total slaughter for the week up to 358,000 head.
Boxed beef prices were higher on 135 loads, with the Choice cutout up $1.05 to $265.71 and the Select cutout up $1 to $257.09.
Feeder cattle
Feeder cattle futures were higher another day, bringing the January contract up $2.32 to $165.87 and the March contract up $2.82 to $168.05. The CME Feeder Cattle Index was unchanged today at $159.56.
“While it’s utterly exciting to see the contracts trading higher through the odd spell between Christmas and the New Year holiday, what’s even more exciting is the fact that next week when sale barns get back to their normal schedule they’ll likely be met with extremely strong demand as strong cash cattle prices make buyers eager to get feeders and calves bought,” Stewart said.
Corn futures were barely higher, with the March contract up half a penny to $6.05 and the May contract up less than a penny to $6.06.
Nebraska: Tri-State Livestock Auction in McCook sold 1,500 head Monday. Compared to last week, steers sold steady to $5 higher, and heifers were steady to $7 higher. Benchmark steers averaging 762 lbs. sold between $162-168, averaging $166.22. — Anna Miller, WLJ managing editor
