Monday markets
The cattle complex started the short trading week closing mixed.
Live cattle futures were lower, with the December contract down 35 cents to $190.97 and the February contract down 95 cents to $187.45.
“Christmas week will be a little different with Christmas falling midweek,” the Cattle Report wrote. “Some feedyards have elected to focus on keeping feed in front of the cattle instead of marketing cattle while most will spend limited time with cattle sales. The slaughter volume this week will be especially slow, and next week will be somewhat slow but larger than this week. Fed supplies are tight and packers are short-bought, requiring some activity this week.”
Cash trade was minimal, with only 137 head sold for $192.
On the formula side, 33,400 head averaging 932 lbs. Sold for an average of $309.88.
Cash trade for the week ending Dec. 22 was 49,864 head. Live steers averaged $194.68, and dressed steers averaged $305.57.
Today’s slaughter is estimated to be 118,000 head, the same as a week earlier. Slaughter for last week is projected to be 617,000 head.
“Last week’s slaughter came in at 617k head, smaller than many predictions as packers continue to fight red ink,” Cassie Fish, market analyst, wrote for The Beef. “This week’s expectations for slaughter run from 500k to 550k head, depending entirely on how many plants run on Saturday.”
Total beef production under federal inspection for the week ending Dec.21 was 534.7 million lbs., 1.4% above a week earlier and 1.8% above last year.
Boxed beef prices were slightly higher on 114 loads, with the Choice cutout up 13 cents to $315.98 and the Select cutout up 84 cents to $286.75.
“Boxed beef prices are in the throes of the seasonal switch, with strength in the chuck and round offsetting plummeting rib values,” Fish wrote. “Ribs are down nearly $80/cwt off their seasonal highs.”
The latest Cattle on Feed report released on Dec. 20 showed 12 million cattle and calves on feed in U.S. feedlots with a capacity of 1,000 or more head as of Dec. 1, slightly below last year’s numbers. November placements totaled 1.80 million head, 4% lower than in 2023, with most placements under 800 lbs. Marketings of fed cattle for November reached 1.73 million head, 1% below 2023 levels. Other disappearances during the month totaled 55,000 head, a 2% increase from the previous year.
Feeder cattle
Feeder cattle futures closed higher, with the January contract up $1 to $256.60 and the March contract up 17 cents to $256. The CME Feeder Cattle Index was up 85 cents to $263.
Corn futures were higher, with the March and May contracts up a penny to $4.47 and $4.53, respectively.
No auction markets to report today due to the Christmas holiday. — Charles Wallace, WLJ contributing editor
