Thursday markets
Seeing sharply higher fed cash cattle sales, traders pushed cattle futures higher, yet futures remain unable to hold above the 100-day moving average.
“CME cattle futures gapped higher and rallied off the strong cash news, but it is clearly a day (and a week) of ‘cash is stronger than futures’,” wrote Cassie Fish, market analyst, in The Beef. “Futures have rallied to the 100-day moving average, but so far, have not been able to hold above it.”
Live cattle futures made triple-digit gains, with the December contract $3.57 higher to close at $230.37 and the February contract up $2.42 to $230.95.
Cash trade was moderate, with 21,219 head sold. Live steers sold for $228-230, and dressed steers sold for $355.
“The South has traded some at $230, though some are passing, and the North has traded at $228 and $229, narrowing the discount to the south in dramatic fashion,” Fish wrote. “Though everything about the cattle futures and the cash cattle market is dramatic lately.”
On the formula side, 23,900 head averaging 965 lbs. sold for an average of $352.36.
Today’s slaughter is estimated to be 123,000 head, 2,000 head above last week.
Actual slaughter for the week ending Nov. 29 was 496,077 head. The average steer dressed weight was 983 lbs., down 5 lbs. from the prior week.
Boxed beef prices were lower on 151 loads, with the Choice cutout down $1.51 to $358.11 and the Select cutout $1.42 lower to $343.46.
Feeder cattle
Feeder cattle also experienced triple-digit gains, with the January contract $5.02 higher to close at $343.40 and the March contract up $4.85 to $337.67.
The CME Feeder Cattle Index was 47 cents lower to $344.03.
Corn futures closed slightly higher, with the December contract up a fraction to $4.35 and the March contract 2 cents higher to $4.46.
Kansas: Winter Livestock in Dodge City sold 3,129 head on Wednesday. Compared to the previous auction, steers over 700 lbs. sold steady and under 700 lbs. sold $10-30 higher. Heifers over 700 lbs. sold $3 lower, while under 700 lbs. sold $10-20 higher, with a couple instances of $26-30 higher. A small lot of seven steers weighing 309 lbs. sold for $630.00/wt. Benchmark steers 788 lbs. sold for $335-357.75 and averaged $352.35.
Nebraska: Bassett Livestock in Bassett sold 5,270 head on Wednesday. Compared to the last auction, steers and heifers traded unevenly steady. Benchmark steers averaging 760 lbs. sold for $362.50-392, averaging $385.80.
Oklahoma: OKC West in El Reno sold 9,911 head on Wednesday. Compared to the previous auction, feeder steers over 900 lbs. steady on plainer quality and under 900 lbs. traded $4-8 higher. Feeder heifers sold $10-15 higher. Steer calves over 500 lbs. sold $8-18 higher and under 500 lbs. traded $15-25 higher. Heifer calves sold $4-8 higher. Benchmark steers averaging 724 lbs. sold for $345-373 and averaged $356.46. — Charles Wallace, WLJ contributing editor
