Wednesday markets
Fed cattle trade has still been slow to develop this week. As of Wednesday afternoon, only about 11,000 head had been sold.
Only 4,974 head sold on the fed cattle market, with steers selling between $140-141. Dressed steers sold for $220. On the formula side, 23,100 head averaging 879 lbs. sold for $230.52.
The Fed Cattle Exchange hosted its weekly sale Wednesday and offered 1,849 head, of which none sold. Opening bids were mostly at $138-139, while reserves were set at $141-143.50.
Live cattle futures were lower, with the December contract down 67 cents to $137.55 and the February contract down 55 cents to $138.67.
Slaughter for the day is projected at 122,000 head, on pace with the same time last week. To date this week, slaughter totals 367,000 head.
“Most plants will be closed both Christmas Eve and Christmas Day, making the week of December 20th a four-day slaughter week,” said Cassie Fish, market analyst, in The Beef. “Packers have every reason to run very hard this week and next prior to the two-week holiday slow down. There is talk this week’s slaughter could not approach last week’s 677K head, and next week could hit 680K.”
Boxed beef prices saw some losses on 161 loads. The Choice cutout lost $3.92 to close at $264.11, and the Select cutout lost $2.59 to close at $253.09.
“It is reasonable to expect Q1 2022 wholesale prices to be record, since 2021 boxed beef prices in Q1 were sub-$250 and production was big due to heavy weights,” Fish said.
Feeder cattle
Feeder cattle futures were also down today. The January contract lost $1.62 to close at $163.40, and the March contract lost $1.60 to close at $165.87. The CME Feeder Cattle Index gained 20 cents to close at $161.16.
Corn futures were mixed, with the December contract down a penny to $5.84 and the March contract up a penny to $5.87.
“Sale barns only have this week and next before most head out for the remainder of the year to take some much-needed time off,” said ShayLe Stewart, DTN livestock analyst, in her midday comments. “With that being the case, sales are seeing large receipts this week and thus far they’ve been met with strong interest.”
Colorado: Winter Livestock in La Junta sold 7,134 head Tuesday. Compared to a week earlier, feeder steers and heifers under 500 lbs. sold $5-8 higher, with instances of $10 higher on steers. Steers 500-700 lbs. sold $3-5 higher, and over 700 lbs. sold steady to $3 higher, with instances of $8 higher. Heifers 500-700 lbs. sold steady to $2 higher, and over 700 lbs. sold $2-3 higher. — Anna Miller, WLJ managing editor
