Monday markets
The cattle market eased its way slowly into the new year, with traders cautious and prices lower.
Live cattle futures posted lower, with the February contract down 77 cents to $138.92 and the April contract down 62 cents to $144.20.
Cash trade was inactive today, with only 137 head sold. On the formula side, a total of 24,300 head averaging 923 lbs. sold for an average of $215.70.
“Heading into this week’s trade, it will be crucial to continue to monitor boxed beef prices (as higher prices will encourage packers to keep processing speeds elevated), daily slaughter speeds and Thursday’s export report (as an influx or decrease in sales could influence the market in the short term),” remarked ShayLe Stewart, DTN livestock analyst, in her midday comments.
There was a sizable amount of cash trade last week, especially for it being a holiday-shortened week. A total of 93,132 head sold, with live steers averaging $139.60 and dressed steers averaging $221.46.
Slaughter for the day is estimated at 112,000 head, a few thousand head short of the same time last week. A total of 61,000 head were slaughtered Friday, and only 1,000 head were killed Saturday due to the holiday. Slaughter through last week is projected at 537,000 head. Actual slaughter through Dec. 18 totaled 657,633 head.
Boxed beef prices were slightly higher on 129 loads, with the Choice cutout up 77 cents to $266.03 and the Select cutout up 67 cents to $258.90.
“Boxed beef prices seasonally bottomed at $260 for Choice in late December, historically high for a ‘low,’ not just in December, but for anytime of the year,” said Cassie Fish, market analyst, in The Beef. “Beef demand continues to be mostly unfazed by the record prices, which have persisted for months in the face of record production.”
Feeder cattle
Feeder cattle futures were also lower, with the January contract down 62 cents to $166.25 and the March contract down 42 cents to $169.52. The CME Feeder Cattle Index closed 14 cents higher at $165.35.
Corn futures saw some losses, with the March contract down 4 cents to $5.89 and the May contract also down 4 cents to $5.91.
“Order buyers are eager to jump into the market as they see potential in the upcoming months with the live cattle market and they haven’t been able to really buy cattle over the last two weeks,” Stewart said.
Missouri: Joplin Regional Stockyards in Carthage sold 10,000 head in their first sale of the year on Monday. The sale also included a special yearling sale. Feeder steers traded $3-8 higher, with some five-weight steers trading $10 higher. Feeder heifers traded steady. Benchmark steers averaging 779 lbs. sold between $158-164, averaging $160.03.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 9,000 head Monday. Compared to the previous sale held on Dec. 13, steer calves sold $3-6 higher, and heifer calves sold unevenly steady. Feeder steers sold steady to $3 lower, and feeder heifers were not well tested, but a lower undertone was noted. — Anna Miller, WLJ managing editor
