Monday markets
Live cattle headed lower on the board today while feeder cattle were bolstered by lower corn prices.
Live cattle futures were lower, with the December contract down 12 cents to $153.22 and the February contract down 5 cents to $155.82.
Cash trade for the day was slim, with fewer than 300 head sold. Trade was inactive on very light demand in Nebraska. In the southern Plains, Colorado and western Corn Belt, cash trade was at a standstill.
On the formula side, a total of 24,000 head averaging 885 lbs. sold for an average of $250.44.
Cash trade for the week ending Dec. 4 totaled 77,500 head. Live steers averaged $156.39, and dressed steers averaged $248.58.
“The cheaper it becomes for feedlots to finish cattle, the more margin (feeders) should be able to secure if cash prices keep trending in the current upward fashion,” wrote ShayLe Stewart, DTN livestock analyst, in her midday comments.
Slaughter for the day is estimated at 127,000 head, down 1,000 head from a week earlier. Slaughter for a week earlier is projected at 663,000 head.
Boxed beef prices were down, with the Choice cutout down $6.62 to $243.31 and the Select cutout down $3.45 to close at $221.11.
“The rib will top this week and the cutout will falter until end cuts catch. All of this activity is pretty seasonal, though packer margins are under pressure,” wrote Cassie Fish, market analyst, in The Beef.
Feeder cattle
Feeder cattle futures were higher, with the January contract up $1.32 to $183.77 and the March contract up $1.10 to $186.37.
The CME Feeder Cattle Index lost 89 cents to close at $178.14.
Corn futures were in the red, with the December contract down 6 cents to $6.28 and the March contract down 5 cents to $6.40.
“The real question in the feeder cattle complex remains to be: What are fat cattle prices going to do? In order for buyers to justify paying these purchase prices, the output price of fats has to get stronger,” Stewart said.
Missouri: Joplin Regional Stockyards in Carthage sold 10,000 head on Monday. Compared to a week earlier, feeder steers traded steady to $3 higher, with feeder heifers trading steady. Benchmark steers averaging 781 lbs. sold between $180-182.25, averaging $181.58.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 14,000 head on Monday. Compared to a week earlier, feeder steers and heifers traded unevenly steady and were lightly tested. Steer calves sold $4-7 higher, with instances of $12 higher. Heifer calves over 450 lbs. sold unevenly steady, and under 450 lbs. sold $15-20 higher. Benchmark steers averaging 757 lbs. sold between $173-186, averaging $178.77. — Anna Miller, WLJ managing editor
