Monday markets
Live cattle futures started the week modestly higher, while feeder cattle futures were lower, despite lower corn futures.
Live cattle futures traded marginally higher, with the December contract up 22 cents to $155.27 and the February contract up 27 cents to $156.05.
“After last Friday’s strong close in the live cattle market, the complex is again trading higher as it aims to tackle this week with the same level of eagerness,” ShayLe Stewart, DTN livestock analyst, wrote in the midday comments. “The market hasn’t been able to break through the resistance at $156.95, and given that this week will see less trade action because of Christmas, it’s unlikely that traders will push the market beyond those current resistance levels. However, the support from higher boxed beef prices and steady to $1 higher trade in the cash market last week has helped motivate traders again this week.”
Cash trade was nonexistent, with 147 head sold—not enough for a market trend. On the formula side, 24,200 head averaging 879 lbs. sold for an average of $252.21.
Cash trade for the week ending Dec.18 was 74,567 head. Live steers averaged $155.58, and dressed steers averaged $247.81.
“Packers were unable to cheapen cattle costs last week, as prices ended up steady compared to the prior week,” Cassie Fish, market analyst for The Beef, wrote. “Expectations are cash prices will be steady again this week and higher next week as packers reload inventory preparing for ramped-up production schedules in January. Red ink was in its third week last week, though choice boxed beef prices did improve by $9.60/cwt last week compared to the prior week.”
Slaughter for today is expected to be 100,000 head, 25,000 head below last week.
Last week’s slaughter was expected to be 625,000, 27,000 head below the prior week and last year.
Boxed beef prices closed higher on 74 loads, with the Choice cutout up $1 to $263.83 and the Select cutout up $3.12 to $238.57.
Feeder cattle
Feeder cattle futures closed lower despite lower corn contracts, with the January contract down $1.67 to $182.10 and the March contract down 90 cents to $183.80. The CME Feeder Cattle Index was down 77 cents to $178.74.
“Normally, one would think that with the corn market trading as much as 7 cents lower in its nearby contracts, the feeder cattle market would be trading higher, but with the Christmas holiday nearing, the market isn’t performing as it normally would,” Stewart wrote. “Last week, most sale barns held their last sale for the year, although some early sales will take place on Monday and Tuesday of this week. But for the most part, the feeder cattle market won’t see much action or attention from now through the first of the new year.”
Corn closed lower, with the March and May contracts down 5 cents to $6.47 and $6.48, respectively.
Missouri: Joplin Regional Stockyards in Carthage sold 10,000 head Monday. Compared to last week, at the mid-session, feeder steers were trading $3-6 lower, with feeder heifers trading steady to $3 lower. Benchmark steers averaging 720 lbs. sold between $172-183, averaging $178.59.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 8,000 head Monday. Compared to a week earlier, at the mid-session, feeder steers under 800 lbs. sold steady to $4 higher, and over 800 lbs. were mostly steady. Feeder heifers sold steady in a light test. Steer calves sold $4-8 higher, and heifer calves were steady to $4 higher. Benchmark steers averaging 764 lbs. sold between $171-196, averaging $181.59. — Charles Wallace, WLJ editor
