Friday markets
Markets closed the week generally lower, with futures down and cash trade light.
Live cattle futures were lower, with the February contract down 40 cents to $137.92 and the April contract down $1.07 to $142.10.
There were only 3,887 head sold on the cash market today. Live steers sold between $137-140, and dressed steers sold for $218. Cash trade for the week is expected to be about 68,500 head. On the formula side, a total of 31,800 head averaging 882 lbs. averaged $218.58 today.
“The best we can say on cattle prices’ behalf is that it appears the market was encouraged by this week’s slight increases in the daily slaughter pace and remains optimistic about returning to higher levels soon,” remarked Todd Hultman, DTN lead analyst, in his closing comments.
Slaughter for the day is projected at 114,000 head, a thousand head above the same time a week earlier. Tomorrow’s slaughter is expected to be 61,000 head, 11,000 head more than last week, bringing the week’s total to 636,000 head.
Boxed beef prices were mixed, with the Choice cutout down 57 cents to $292.41 and the Select cutout up 15 cents to $282.33.
USDA released its first Cattle on Feed report for the year, showing total cattle and calves on feed at 12 million head on Jan. 1, up 1 percent from last year. This is the second highest Jan. 1 inventory on record.
Placements were up 6 percent, the highest placements in December on record. Marketings were slightly above 2020 and were the second highest in December on record. Other disappearance totaled 54,000 head during December, 10 percent below 2020.
Feeder cattle
Feeder cattle futures were lower as well, with the January contract down 90 cents to $160.27 and the March contract down $1.65 to $163.30. The CME Feeder Cattle Index lost 10 cents to close at $161.10.
“This week’s 20-cent gain in March corn and ongoing concerns that cattle are gaining weight, while the slaughter pace has slowed, are two of this week’s stronger bearish concerns,” Hultman said.
Corn futures were modestly higher, with the March contract up 5 cents to $6.16 and the May contract up 3 cents to $6.14.
Nebraska: Ogallala Livestock Auction in Ogallala sold 7,680 head on Thursday. Compared to last week, steers sold steady to $7 higher. Heifers under 600 lbs. sold steady to $9 lower, and over 600 lbs. sold $2-8 higher. Benchmark steers averaging 781 lbs. sold between $161.50-171, averaging $166.74. — Anna Miller, WLJ managing editor
