Friday markets
Up, up and away went the markets today, rallying several dollars higher on the board thanks to a surge in cash trade.
Live cattle futures were several dollars higher, up $3.67 to $204.77 on the February contract and up $2.30 to $203.02 on the April contract.
Cash trade for the day was substantial, with more than 43,000 head sold. Live steers sold from $206-212, and dressed steers sold from $328-339. Total cash trade through the afternoon was about 61,000 head.
“Early this week, the market was hesitant to move too boldly; but by Wednesday, traders saw the writing on the wall that fed cattle prices were going to be at least steady, if not a little higher, and the bullish excitement once again ran rampant through the contracts,” wrote ShayLe Stewart, DTN livestock analyst, in her midday comments.
Slaughter for the day is estimated at 111,000 head. With tomorrow’s slaughter expected at 2,000 head, total slaughter for the week is projected at 599,000 head. A week earlier, total slaughter was estimated at 603,000 head.
Boxed beef prices were lower on 129 loads. The Choice cutout lost $3.04 to close at $327.92, and the Select cutout lost 92 cents to close at $316.29.
USDA released its latest Cattle on Feed report today. The total number of cattle and calves on feed as of Jan. 1 was 1% below last year. Placements were 3% lower, and marketings were 1% higher. Other disappearance was 2% lower.
Feeder cattle
Feeder cattle futures were higher, up $1.62 to $278.70 on the January contract, and up $2.50 to $276.57 on the March contract.
The CME Feeder Cattle Index lost 63 cents to close at $277.55.
Corn futures were lower, down 3 cents to $4.86 on the March contract and down 2 cents to $4.96 on the May contract.
“It would be remiss of me not to credit Friday’s wild success to feedlot managers who are keenly aware of the market dynamics at play and continue to hold out for more money—which is paying dividends,” Stewart said. “Well done folks! This is history unfolding before our eyes!” — Anna Miller, WLJ managing editor
