Thursday markets
Live cattle traded mixed, feeder cattle higher, and the price of corn continued to hold its own.
Live cattle contracts bounced around on either side of the market all week, and ultimately closed Thursday mixed from the week prior. The February contract settled at $117, compared to the prior Friday’s close of $115.92. The April contract was down to $121.67 from the prior week’s price of $123.67.
“Live cattle futures are being pressured to trade mostly lower as the market wonders where the week’s cash cattle market will end up and where the week’s official slaughter count will land and is absorbing the aftermath of a weaker export report,” commented ShayLe Stewart, DTN livestock analyst, in her Thursday midday comments.
Cash cattle traded at the $114 mark all week and dressed steers at $181 and some change. The week prior, only a total of 74,306 head were able to be traded through the winter storm. Live steers averaged $114.05 and dressed steers averaged $180.49.
The question on everyone’s mind last week was whether processors were going to be able to pick up the pace and get slaughter back on track again.
As of Thursday afternoon, a total of 483,000 head had been processed, compared to 380,000 head the week prior. The same time last year slaughter was recorded at 486,000 head. So, processors have been up and running.
Boxed beef prices have traded mostly steady, closing Thursday with the Choice cutout at $240.39 and the Select cutout at $228.79.
Feeder cattle
Feeder cattle contracts traded mostly higher throughout the week, closing Thursday higher than the week prior. The March contract closed at $140.42 and the April contract at $145.07. Corn prices have held steady, closing Thursday at $5.54. The CME Feeder Cattle Index closed higher at $139.48.
“Traders are leery of the live cattle contracts given the unknown nature of this week’s cash cattle market and leery of the lean hog market because of the weaker export report. All of which gives traders the green light to invest in feeder cattle contracts as it’s a safe investment while demand is strong throughout sale barns and the board is far from any resistance pressure,” Stewart remarked Thursday afternoon.
Colorado: La Junta Livestock Commission in La Junta sold 1,033 head Wednesday. Compared with the previous sale, all weights of feeder steers sold steady to $1 higher, except six-weights sold $2-3 higher. All weights of feeder heifers mostly steady. Benchmark steers averaging 716 lbs. sold between $136-137.
Nebraska: Huss Livestock Market in Kearney sold 5,078 head Wednesday. Compared to the last sale’s light test, steers under 650 lbs. sold $8-10 higher; and over 650 lbs. sold steady to $5 higher. Heifers sold steady. Benchmark steers averaging 782 lbs. sold between $137-149. — Anna Miller, WLJ editor
