Monday markets
The cattle complex closed mixed despite boxed beef prices closing dramatically higher.
“Short bought packers will enter the week facing a major winter storm in the northern plains that will threaten transportation of cattle in addition to raising asking prices by cattle owners,” the Cattle Report wrote. “The conditions will be aggravated by some sellers deciding to delay marketing plans.”
Live cattle closed higher, with the December contract up 72 cents to $154.40 and the February contract up 55 cents to $156.10.
Cash trade was nonexistent, with 145 head sold—not enough for a market trend.
On the formula side, 26,900 head averaging 882 lbs. sold for an average of $251.61.
Cash trade for the week ending Dec. 11 was 59,222 head. Live steers averaged $155.68, and dressed steers averaged $246.94.
“It was interesting to see that last week’s negotiated cash cattle market only traded 59,222 head with 90% of the cattle being committed to the nearby delivery,” ShayLe Stewart, DTN livestock analyst, wrote in the midday comments. “This indicates that packers are extremely short bought and will likely need to support the cash sector again this week.”
Slaughter for today is expected to be 125,000 head, 2,000 head below last week.
“Expectations for cash-fed cattle prices this week are steady, supported by last week’s light trade, but limited as holiday-shortened slaughter schedules are upon the industry,” Cassie Fish, market analyst for The Beef, wrote. “Last week’s (federally inspected) slaughter was 652K head and on target with expectations. This week could be repeated or perhaps in the mid to upper 640s.”
Boxed beef closed sharply higher on 102 loads, with the Choice cutout up $8.09 to $257.02 and the Select cutout up $4.42 to $225.68.
Feeder cattle
Feeder cattle closed mixed, with the January contract down 27 cents to $183.65 and the March contract up 12 cents to $185.22. The CME Feeder Cattle Index was up 72 cents to $179.94.
“With Russia sending drones over the week to incapacitate the Odessa port, there are concerns about Ukraine grain shipments, which consequently drives the price of U.S. grains higher,” Stewart wrote. “It is positive for the feeder cattle complex to see the live cattle contracts trading higher, but more than anything the market longs for cash cattle to trade higher again this week.”
Corn traded higher, with the December contract up 6 cents to $6.41 and the March contract up 10 cents to $6.54.
Missouri: Joplin Regional Stockyards in Carthage sold 7,000 head Monday. Compared to the last auction, as of the mid-session, feeder steers were trading steady to $3 higher, with heifers trading steady to $2 higher. Benchmark steers averaging 764 lbs. sold between $178-182.50, averaging $180.03.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 11,200 head Monday. Compared to the last auction, as of the mid-session, feeder steers and heifers sold unevenly steady. Steer calves sold unevenly steady, and heifer calves were $3-5 lower. Benchmark steers averaging 732 lbs. sold between $175-188.25 and averaged $181.46. — Charles Wallace, WLJ editor
