Friday markets
It was a quiet day in the cattle markets, with futures lower and processing speeds slower than expected.
“Live cattle futures are feeling the pressures of the market’s concern regarding processing speeds and saw the market’s steady to $1 lower cash cattle trade as weakness as well,” remarked ShayLe Stewart, DTN livestock analyst, in her midday comments.
Live cattle futures were lower, with the February contract down 2 cents to $137.32 and the April contract down 40 cents to $142.05.
“The widespread industry nervousness has allowed beef packers to buy cattle cheaper this week than expected,” said Cassie Fish, market analyst, in The Beef. “So this week turns out to be another windfall for packer margins despite the loss of plant productivity.”
There was a small amount of cash trade today, with about 2,545 head sold. Live steers sold between $136-139 and dressed steers averaged $220. On the formula side, a total of 24,300 head averaging 889 lbs. sold for an average of $221.28. Cash trade through the week totaled about 47,000 head.
“All through the week, processing speeds have teetered from 113,000 head to 117,000 head; usually daily processing rates are up closer to 120,000 head per day,” Stewart said.
Slaughter for the day is estimated at 112,000 head. Tomorrow’s slaughter is predicted to be 58,000 head, bringing the week’s total to 62,000 head. Actual slaughter for the week ending Dec. 25 totaled 486,816 head.
Boxed beef prices made some gains on 96 loads. The Choice cutout increased $3.26 to close at $271.82 and the Select cutout closed 46 cents higher to close at $261.10.
Feeder cattle
Feeder cattle futures posted lower, with the January contract down 47 cents to $162.10 and the March contract down 60 cents to $166.67. The CME Feeder Cattle Index lost 49 cents to close at $161.79.
“Even though feeders have held strong throughout sale barns this week, the pressures of a gloomy board and a skeptical live cattle market ultimately sends the contracts lower,” Stewart said.
Corn futures were slightly higher, with the March and May contracts each up 3 cents to $6.06 and $6.07, respectively.
Nebraska: Ogallala Livestock Auction in Ogallala sold 7,220 head yesterday. There was no comparison to last week, as it was the first sale of the year. Demand was good all day, with a good selection offered. Benchmark steers averaging 730 lbs. sold between $158-174.50, and averaged $167.28. — Anna Miller, WLJ managing editor
