Friday markets
The cattle market found some holiday cheer to close out Christmas week on a higher note.
Live cattle futures closed higher. The December contract gained $1.12 to close at $229.82, and the February contract gained $1.10 to close at $229.65.
“More than anything it seems as though the contracts are trading a tic higher after a weaker close on Wednesday as traders elected to let the contracts fall away from the market’s resistance at its 100-day moving average,” said ShayLe Stewart, DTN livestock analyst, in her midday comments.
Cash trade for the day totaled about 1,000 head. Live steers sold for $228. Total cash trade through the week was about 36,000 head.
Slaughter for the day is estimated at 110,000 head. With tomorrow’s slaughter expected at 32,000 head, total slaughter for the week is projected at 429,000 head (holiday week) compared to 587,000 head last week. Total slaughter for the week ending Dec. 13 totaled 595,972 head. Dressed steers averaged 981 lbs.
“Missing from this week’s slaughter production was the profit margin that characterized the previous recent weeks,” the Cattle Report said. “Increasing cattle costs marred returns.”
Boxed beef prices were lower on 70 loads. The Choice cutout lost $3.41 to close at $351.21, and the Select cutout lost $1.95 to close at $343.80.
Feeder cattle
Feeder cattle futures were higher. The January contract gained $1.45 to close at $346.17, and the March contract gained $1.62 to close at 340.42.
“The feeder cattle complex is again following the direction of the live cattle market as it too is higher,” Stewart said. “But what’s different about the feeder cattle complex as opposed to the live cattle market is that for the last four trading days, the feeder cattle complex has been able to maintain a position above the market’s 100-day moving average in its spot March contract.”
The CME Feeder Cattle Index lost 39 cents to close at $354.01.
Corn futures sold mostly sideways, with the March contract losing a penny to $4.50 and the May contract losing less than a penny to $4.58.
Most auction barns were closed for the holiday week. — Anna Miller Fortozo, WLJ managing editor
