Thursday markets
The cattle complex traded higher starting the day but lost steam going into the afternoon and closed slightly lower.
Live cattle closed slightly lower, with the February contract down 22 cents to $138.32 and the April contract down 17 cents to $143.17.
Cash trade was moderate, with 9,589 head selling between $136-139, averaging $137.30. Dressed steers sold for $218. On the formula side, 27,000 head averaging 909 lbs. averaged $220.60.
The Fed Cattle Exchange auction listed 3,398 head, of which 681 head from Kansas sold for $137. Opening prices ranged from $123-135, and high bids ranged from $136.75-137.25.
“Packer’s support continued into mid-week with prices mostly spots higher in the south and steady in the north,” the Cattle Report wrote. “A sharp rise in futures prices failed to translate into higher cash. Buying of cattle in almost all regions, although selectively, was mostly at $137 live and dressed sales in the north at $218. With box prices rising every day, packers feel like they are supporting a steady market when they could be taking advantage of the shortage of slaughter slots.”
Slaughter for the day is projected to be 116,000 head, 2,000 head above last week and 6,000 below last year. Actual slaughter for the week ending Jan. 8 was 619,479 head, and steer weight was 928 lbs.
USDA released the Livestock Slaughter report for November, showing beef production was 2.38 billion lbs., 5 percent above the previous year. Cattle slaughter totaled 2.86 million head, up 6 percent from November 2020. The average live weight was down 5 lbs. from the previous year, at 1,382 lbs.
Boxed beef prices continue to rise on 129 loads, with the Choice cutout up $1.38 to $292.98 and the Select cutout up $1.75 to $282.18.
Feeder cattle
Feeder cattle also closed the day slightly lower, with the January contract down 22 cents to $161.17 and the March contract down 67 cents to $164.95. The CME Feeder Cattle Index was down 4 cents to $161.20.
“The corn market isn’t even to blame for Thursday’s weakness as corn contracts are trading mostly steady after Wednesday’s wild advancement,” ShayLe Stewart, DTN livestock analyst, wrote in the midday comments. “Largely, the feeder cattle contracts are lower on a pullback from traders and with the live cattle contracts now lower too, the market is apprehensive about being too bullish.”
Corn contracts closed the day mixed, with the March contract up a fraction of a cent to $6.11 and the May contract down a fraction to $6.10 a bushel.
Kansas: Winter Livestock in Dodge City sold 4,036 head on Wednesday. Compared to the previous auction, yearling steers 600-950 lbs. sold steady to $3 higher. Steer calves 400-600 lbs. sold unevenly steady. Yearling heifers 550-900 lbs. sold steady to $3 higher. Heifer calves 400-550 lbs. sold unevenly steady. Benchmark steers averaging 718 lbs. sold between $159-167.75, averaging $165.36.
Nebraska: Bassett Livestock in Bassett sold 2,575 head on Wednesday. There was a limited number of comparable offerings from last week, but a considerable change was noted on steers, with 500-700 lbs. trading $3-17 lower and comparable heifer offerings 500-650 lbs. trading steady to $10 lower. Benchmark steers averaging 712 lbs. sold between $170-171.50 and averaged $170.37.
New Mexico: Clovis Livestock in Clovis sold 2,987 head on Wednesday. Compared to the last auction, steer and heifer calves sold mostly steady, with 500-600 lb. steers trading $2-3 higher. Feeder steers traded $2-5 higher on comparable sales. Feeder heifers were steady to $1 higher. Benchmark steers averaging 709 lbs. sold between $153-159.50, averaging $158.02.
Oklahoma: OKC West in El Reno sold 9,817 head on Wednesday. Compared to the previous auction, feeder steers and heifers sold mostly steady to $2 higher. Steer calves under 450 lbs. sold $2-4 higher, and the remainder of the steers traded mostly steady. Heifer calves sold $4-6 higher. Benchmark steers averaging 767 lbs. sold between $153-166, averaging $160.80.
South Dakota: Hub City Livestock in Aberdeen sold 6,866 head on Wednesday. Compared to the last auction, steers 550-700 lbs. sold $1-3 higher, and 701-850 lbs. were mostly steady. Heifers 550-700 lbs. were mostly steady, while 701-750 lbs. sold $2-4 higher. Benchmark steers averaging 776 lbs. sold between $154.50-170 and averaged $163.04. — Charles Wallace, WLJ editor
