Friday markets
USDA’s National Agricultural Statistics Service today released their biannual report on U.S. cattle inventory. The report described the cattle inventory as of Jan. 1 slightly below the same time last year, at 93.6 million head compared to 93.8 million head.
The 2020 calf crop was estimated at 35.1 million head, down 1 percent from the year prior. Calves born during the first half of 2020 were estimated at 25.5 million head, down 1 percent from the same time the year before. Calves born during the second half of 2020 were estimated at 9.39 million head, 27 percent of the total 2020 calf crop.
The report’s bullish numbers were expected to help add support to both the live cattle and feeder cattle markets, but instead, both markets were down today.
The February live cattle contract was down 95 cents to $115.05 and the April contract was down 85 cents to $121.85.
However, “The last time live cattle traded for more than $112 was over seven months ago; you better believe feedlots are ready to see stronger cash cattle prices and are willing to wait as long as it takes to see the market get where it needs to be,” commented ShayLe Stewart, DTN livestock analyst, in her midday comments.
Cash cattle trade volume finally picked up today, with 29,471 head selling after a slow week. Live cattle prices ranged from $110-113 and dressed purchases sold between $176-181. A total of 20,200 head of formula cattle averaging 894 lbs. were priced at $178.06.
Boxed beef prices continue to scale higher, with the Choice cutout up $1.96 to $233.95 and the Select cutout up $1.82 to $222.70 on 75 loads.
Slaughter for the day is projected at 120,000 head, bringing the week’s slaughter to date to 591,000 head. Tomorrow’s Saturday slaughter is estimated at 62,000 head.
Feeder cattle
The March corn contract scaled 12-and-a-half cents higher to $5.47 and the feeder cattle contracts took a dive down. The January contract was down $2.07 to $137.72 and the March contract was down $1.92 to $140.75. The latest CME Feeder Cattle Index was reported up 68 cents to $136.02.
“Auctions this week have started to see lighter sale receipts, which has helped take some of the supply pressure off the feeder cattle market,” Stewart said. “The large runs earlier in January were largely anticipated as a lot of producers carried calves over from earlier this fall. But having to market them in a short time period can create pressure in and of itself.”
Nebraska: Ogallala Livestock Auction in Ogallala sold 5,135 head Thursday. Compared to last week, steers sold steady to $4 higher. Heifers sold steady to $9 lower, except 6-weight heifers were $3-4 higher. Benchmark steers averaging 724 lbs. sold between $139.50-150.50, and averaged $147.06. — Anna Miller, WLJ editor
