Friday markets
The cattle complex finished the week on a higher note, supported by a dramatic increase in boxed beef prices.
Live cattle futures closed higher, with the December contract up $1 to $155.05 and the February contract up 92 cents to $155.77.
“The spot February contract is teetering with its 40-day moving average, signaling that the market sees that there’s more upside to be had, so long as the market’s fundamentals continue to push the futures complex in that direction,” ShayLe Stewart, DTN livestock analyst, wrote in the midday comments.
Cash trade was light, with 6,517 head selling between $156-157, averaging $156.86. Dressed steers averaged $247.25.
“There’s a sole bid offered in Texas for $155, but thus far no one has accepted its offer,” Stewart wrote. “It’s likely that some more clean-up trade could develop ahead of the day’s end, but for cattle left on showlists, Southern feedlots are asking $156 to $157 and Northern feedlots are asking $250 plus.”
On the formula side, 26,000 head averaging $878 lbs. sold for an average of $251.08.
Slaughter for the day is estimated at 119,000 head. With tomorrow’s slaughter expected at 24,000 head, slaughter for the week is projected at 629,000 head, 23,000 below the prior week.
Boxed beef closed sharply higher on 71 loads, with the Choice cutout up $8.53 to $262.83 and the Select cutout up $6.94 to $235.45.
The Daily Livestock Report wrote the steer hide and offal value last week was $14.67/cwt.
“For this time of year, the five-year average indicates values are typically around $10/cwt,” the Daily Livestock Report wrote. “Support for the value has come from livers at $60/cwt, tongues
steady at $900, and cheek meat remaining at $251/cwt since September. Hearts, tripe, and tallow have fallen in recent weeks by about 5-7% but hides continue to stay relatively level.”
Feeder cattle
Feeder cattle closed higher, with the January contract up 72 cents to $183.77 and the March contract up 2 cents to $184.70. The CME Feeder Cattle Index was up a penny to $179.51.
“With the positive support from yesterday’s higher close in boxed beef prices, and steady to slightly higher trade in the cash cattle market—feeders deemed that there was enough support in the market to justify trading higher,” Stewart wrote.
Corn closed relatively unchanged, with the March and May futures contracts down a fraction of a penny at $6.53.
Kansas: Winter Livestock in Pratt sold 4,956 head Thursday. Compared to the last auction, feeder steers 550-950 lbs. sold $4-6 higher. Steer calves 400-550 lbs. sold $7-10 higher. There were not enough feeder heifers 750-900 lbs. for a market test, however, a higher trend was noted. Heifer calves 400-750 lbs. sold $4-6 higher. Benchmark steers averaging 732 lbs. sold between $183.50-186.50, averaging $185.52.
Montana: Billings Livestock Commission Cattle Auction in Billings sold 3,772 head Thursday. Compared to the last auction, heifer calves under 500 lbs. sold $2-5 higher, and heifers over 500 lbs. sold steady to $5 lower. Yearling steers and heifers were too lightly tested to develop a market trend. Benchmark steers averaging 704 lbs. sold for $176.
Texas: Cattlemen’s Livestock Auction in Dalhart sold 2,589 head Thursday. Compared to the last auction, feeder steers and heifers traded $1-5 higher. Steer calves traded $5-10 higher and heifer calves traded $2 lower. Benchmark steers averaging 710 lbs. sold between $184.50-188.50 and averaged $186.81. — Charles Wallace, WLJ editor
