DTN Midday Livestock Comments
It’s a mixed market environment for the livestock sector as the feeder cattle contracts trade higher, but the live cattle venture lower. The market isn’t likely to see a lot more support develop until next week as traders step out early for the long weekend.
Live cattle
The market’s sorry export report really put a damper on the cattle contracts. February live cattle are down $0.30 at $140.42, April live cattle are down $0.15 at $145.17 and June live cattle are down $0.25 at $139.27. But after the exciting week the live cattle contracts have had, it’s OK that the market is veering lower ahead of a long holiday weekend.
The most impressive factor of the week has been the tenacity of the cash cattle market. Here we sit, Thursday at noon, and still cattle haven’t sold in the South. Rumor has it southern feedlots are willing to roll their cattle over into next week if packers don’t up their bids. Throughout the week, dressed cattle in the North have traded from $218-226, mostly at $220-222, which is $3-50 higher than a week ago.
If there’s one thing I’m incredibly excited for in 2022, it is the regained confidence, regained leverage and regained spirit of feedlots! Asking prices in the South are pinned at $140-plus and, for the cattle left in the North, they are asking $224-plus.
Beef net export sales of 6,300 metric tons (mt) for 2021 were down 48 percent from the previous week and 55 percent from the prior four-week average. The three largest buyers were Japan (2,600 mt), South Korea (1,800 mt) and China (1,000 mt).
Boxed beef prices are mixed: Choice down $0.65 ($265.06) and Select up $0.80 ($257.89) with a movement of 55 loads (30.25 loads of Choice, 5.47 loads of Select, 11.95 loads of trim and 7.28 loads of ground beef).
Feeder cattle
The feeder cattle contracts were drifting lower, following in the shadow of the live cattle contracts, but upon seeing the 11-cent regression in the corn market, the complex couldn’t help itself but to trade higher. January feeders are up $0.70 at $166.57, March feeders are up $0.70 at $168.75 and April feeders are up $0.60 at $171.72.
Once trade gets underway next week, it’s likely sale barns see tremendous demand as order buyers look at the opportunity in the live cattle market and jump wildly into feeder cattle and calves. — ShayLe Stewart, DTN livestock analyst
The WLJ office will be closed tomorrow for New Year’s. The market wrap-up will resume on Monday, Jan. 3. We wish you a safe and happy New Year.
