Monday markets
The cattle market continued to receive enough fundamental support to close the market higher today.
“Last Friday was a whirlwind of developing factors for the live cattle market to note and keep track of, between the fed cash cattle that finally developed, and the monthly Cattle on Feed report that was released,” wrote ShayLe Stewart, DTN livestock analyst, in her midday comments.
“Thankfully, the neutral to slightly bearish tone of the Cattle on Feed report was quickly overlooked by the strong developments in the fed cash cattle market, as traders have elected to again push the live cattle contracts higher today,” she said.
Live cattle futures closed higher. The February contract gained $1.12 to close at $236.02, and the April contract gained $1.07 to close at $238.
Cash trade for the day was light at less than 300 head. While a trend was not noted on live steers, dressed steers sold for $368. On the formula side, a total of 18,300 head averaging 953 lbs. averaged $375.57.
“Even if prices do trade higher again this week, there’s a strong likelihood that traders won’t want to challenge that threshold, especially considering that later this week, the highly anticipated Cattle Inventory report is set to be released,” Stewart said.
Cash trade for the week ending Jan. 25 totaled 73,362 head. Live steers averaged $234.74, and dressed steers averaged $368.76.
Slaughter for the day is estimated at 100,000 head, compared to 105,000 head a week earlier. Total slaughter for last week is estimated at 535,000 head.
Boxed beef prices were mixed on 97 loads. The Choice cutout lost 2 cents to close at $368.90, and the Select cutout gained $4.73 to close at $367.12.
Feeder cattle
Feeder cattle futures closed higher. The January contract gained $1.90 to close at $366.70, and the March contract gained $2.42 to close at $362.60.
The CME Feeder Cattle Index gained 9 cents to close at $363.57.
Corn futures were lower, down 2 cents on the March contract to $4.28 and down 2 cents on the May contract to $4.36.
Many sales were canceled this week ahead of a major snow and ice storm moving through much of the country.
Iowa: Russell Livestock in Russell sold 2,000 head on Monday. Compared to a week earlier, steers sold $4-13 higher. Heifers also sold highly, mostly $3 higher to sharply higher. Benchmark steers averaging 777 lbs. sold from $349-374.50, averaging $369.50. — Anna Miller Fortozo, WLJ managing editor
