Friday markets
Futures trading was quiet, although the cattle complex closed higher, bolstered by higher boxed beef prices.
Live cattle closed higher, with the December contract up $1.25 to $153.67 and the February contract up $1.62 to $155.55.
“Now that the surge of sell orders from earlier in the week has passed, and relatively low trading volume allows the market to streak in one direction or the other, it’s natural that the live cattle market is choosing the ‘up’ direction Friday morning, to correct previous losses and get in line with the physical market,” Elaine Kub, DTN contributing analyst, wrote in the midday comments.
Cash trade was light, as packers were buying the necessary cattle, with 6,787 head selling between $156-158, averaging $157.10. Dressed steers averaged $246.56.
“The week-long deadlock is unraveling in parts but not all regions of the country. Texas proved the weakest seller with a few cattle selling mid-week at $153—$2 lower followed by a few more sales yesterday at $154, $1 weaker than last week,” the Cattle Report wrote. “Nebraska followed the same pattern with early live sales at $156 followed by later sales at $157-158. Kansas has refused the lower bids including yesterday’s bids at $154 holding on to asking prices of $156. Iowa has also sold small volumes of cattle at slightly lower prices, but most cattle are unsold. It appears likely packers will be forced to ratchet up bids to secure next week’s slaughter needs.”
On the formula side, 34,300 head averaging 898 lbs. sold for an average of $252.63.
Slaughter for the day is estimated at 120,000 head. With tomorrow’s slaughter expected at 24,000 head, slaughter for the week is projected at 652,000 head.
Boxed beef closed higher on 98 loads, with the Choice cutout up $1.65 to $248.93 and the Select cutout up 71 cents to $221.26.
Feeder cattle
Feeder cattle were slightly higher, with the January contract up 45 cents to $183.92 and the March contract up 5 cents to $185.10. The CME Feeder Cattle Index was down a penny to $179.22.
“Other outside markets are also providing some tentative support to livestock trade Friday morning, with crude oil up and the stock market up and a general flavor of economic stability,” Kub wrote. “However, feed values are also lightly higher Friday, and if the trading algorithms are fixated on that particular intermarket relationship, then feeder cattle contracts could turn lower as the session wears on.”
Corn contracts were higher, with the December contract up 2 cents to $6.34 and the March contract up a penny to $6.44.
Kansas: Winter Livestock in Pratt sold 2,475 head Thursday. Compared to the previous auction, steers 500-700 lbs. sold steady to $4 lower. Steer calves 400-500 lbs. sold steady to $4 higher. Heifers 550-700 lbs. sold steady to $3 lower. Heifer calves 400-550 lbs. sold $3-5 higher. Benchmark steers averaging 765 lbs. sold between $176-185, averaging $180.34.
Oklahoma: Woodward Livestock Auction in Woodward sold 4,965 head Thursday. Compared to the last auction, feeder steers sold $3-5 higher. Feeder heifers were steady to $2 higher. Steer calves sold $10-12 higher, with instances of $20 higher, and heifer calves were steady. Benchmark steers averaging 763 lbs. sold between $164-183.25 and averaged $179.86.
South Dakota: Mitchell Livestock Auction in Mitchell sold 6,957 head Thursday. Compared to the previous auction, feeder steers 500-600 lbs. sold $8-9 higher, 650-950 lbs. sold $1-3 higher and 950-1,150 lbs. sold steady to $1 higher. Feeder heifers 600-650 lbs. sold steady, and 700-950 lbs. sold unevenly steady. A group of steers averaging 765 lbs. sold for $187.
Texas: Cattlemen’s Livestock Auction in Dalhart sold 2,984 head Thursday. Compared to the last auction, feeder steers and heifers traded firm to $3 higher. Heifer calves traded $3-6 higher. A group of steers averaging 792 lbs. sold between $169-171 and averaged $169.54. — Charles Wallace, WLJ editor
