Friday markets
Cattle futures finished the holiday-shortened week closing higher, while boxed beef prices climbed.
Live cattle futures were slightly higher, with the December contract up 72 cents to $193.50 and the February contract up 55 cents to $190.65.
Cash trade was active to finish the week, with 16,241 head sold. Live steers sold for $192-196, and dressed steers sold between $305-308.
“There’s been a light movement of cattle traded in the South at $192, which is $1 higher than last week’s weighted average,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments. “Bids of $305 have again surfaced in the North, but with feedlots’ asking prices firm at $310, that lower bid hasn’t gotten packers anywhere. And with boxed beef prices higher and the board lending the complex technical support as well — it’s likely that Northern feedlot managers will see higher prices again this week if they wait patiently, as packers didn’t buy many cattle last week.”
On the formula side, 38,700 head averaging 930 lbs. sold for an average of $311.04.
The national weekly direct beef type price distribution for the week of Dec. 16-23 was the following on a live basis:
• Negotiated purchases: $194.64.
• Formula net purchases: $194.72.
• Forward contract net purchases: $188.05.
• Negotiated grid net purchases: $197.55.
On a dressed basis:
• Negotiated purchases: $305.54.
• Formula net purchases: $307.71.
• Forward contract net purchases: $300.79.
• Negotiated grid net purchases: $303.06.
Today’s slaughter is estimated to be 123,000 head, 6,000 head above a week earlier. Saturday’s slaughter is projected to be 36,000 head, bringing the estimated weekly total to 434,000 head on this holiday-shortened week.
Boxed beef prices were higher on 87 loads, with the Choice cutout increasing by $1.99 to $322.38 and the Select cutout increasing by $2.36 to $291.13.
Friday’s export report beef net sales of 1,100 metric tons (mt) for 2024 were down 85% from the previous week and 81% from the prior four-week average. The three primary buyers were Japan (1,000 mt), Mexico (500 mt) and South Korea (300 mt).
Feeder cattle
Feeder cattle futures saw triple-digit gains, with the January contract up $2.07 to $261.37 and the March contract up $1.05 to $260.55. The CME Feeder Cattle Index was down $2.45 to $258.32.
Corn futures were slightly higher, with the March contract up a fraction to $4.54 and the May contract up a penny to $4.61.
There are no auction markets to report due to the Christmas holiday. — Charles Wallace, WLJ contributing editor
