Thursday markets
Live cattle futures started trading higher but finished slightly lower.
Live cattle futures were slightly lower, with the December contract down 12 cents to $192.12 and the February contract down 52 cents to $190.85.
Cash trade was active, with 18,306 head sold. Live steers sold for $192.50-196, and dressed steers sold for $302-312.
On the formula side, 40,400 head averaging 936 lbs. sold for an average of $306.33.
“Already this week, Southern live cattle have traded anywhere from $191-192, which is steady to $2 higher, and Northern dressed cattle have traded at mostly $300, which is $3 higher than last week’s weighted average,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments. “But as of Thursday morning, whopping bids of $305 dressed have surfaced in Nebraska, and feedlots are letting them sit idle. You read that correctly, feedlots are passing on the bids of $305 in Nebraska! We understood packers were short going into this week’s market, but for feedlot managers to be bold enough to pass on $305 indicates they are aware of just how short-bought packers are, and they don’t intend to squander the opportunity presented to them this week.”
Today’s slaughter is estimated to be 125,000 head, 7,000 head above a week earlier.
Actual slaughter for the week ending Nov. 30 was 532,898 head. The average steer dressed weight was 954 lbs., 2 lbs. above the prior week.
Boxed beef prices were higher on 135 loads, with the Choice cutout up $4.01 to $315.24 and the Select cutout up $2.37 to $280.48.
Feeder cattle
Feeder cattle futures were lower, with the January contract down 70 cents to $258.35 and the March contract down 80 cents to $258.57. The CME Feeder Cattle Index was up $1.61 to $263.07.
“The spot January contract is currently trading at resistance levels and Thursday’s pressure will likely mean the complex won’t surpass that threshold,” Stewart wrote. “Nevertheless, Thursday’s weakness throughout the futures complex won’t likely have any effect in the countryside as, fundamentally, the power remains evident.”
Corn futures were sharply lower, with the December contract down 6 cents to $4.31 and the March contract down 4 cents to $4.43.
Kansas: Winter Livestock in Dodge City sold 3,150 head on Wednesday. Compared to the previous auction, feeder steers under 650 lbs. sold steady to $5 lower, while steers over 650 lbs. sold steady to $3 lower. Heifers 500 lbs. sold $8 lower, and over 600 lbs. were not well tested, but a softer undertone was noted. Benchmark steers averaging 709 lbs. sold for $256-278, averaging $268.50.
Nebraska: Bassett Livestock in Bassett sold 5,575 head on Wednesday. Compared to the last auction, smaller packages of consignments as steers traded unevenly steady, with no comparable offerings for heifers. Benchmark steers averaging 733 lbs. sold for $287-305, averaging $296.58.
Oklahoma: OKC West in El Reno sold 12,833 head on Wednesday. Compared to the previous auction, feeder steers and heifers sold steady to $5 higher. Steer and heifer calves sold$5-10 lower. Benchmark steers averaging 729 lbs. sold for $253-271, averaging $264.84. — Charles Wallace, WLJ contributing editor
