Thursday markets
The cattle complex continued its decline due to a lack of fundamental support.
Live cattle futures were lower, with the December contract down 95 cents to $190.35, the February contract down $1.77 to $186.55 and the April contract down $1.87 to $188.60.
“The live cattle complex is trading lower as the market continues to flounder lower and lower,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments. “It’s been nerve-racking to watch the spot February contract dip below the market’s 40-day moving average as traders seem to throw in the towel and scramble as they’re being pressured by profiting taking from money managed funds. They won’t likely find secure and stable confidence in the market’s fundamentals this week as the week’s lower dive is being technically driven.”
Cash trade was moderate, with 7,316 head sold. Live steers sold for $194-196, and dressed steers sold for $302-305.
On the formula side, 41,100 head averaging 928 lbs. sold for an average of $307.92.
“There were a few sales marked in the North Wednesday at $305, which is $2 higher than last week’s weighted average,” Stewart wrote. “Bids are currently on the table in both regions where live cattle bids are sitting at mostly $191 in the South and $305 dressed in the North.”
Today’s slaughter is estimated to be 121,000 head, 4,000 head below a week earlier.
Actual slaughter for the week ending Dec. 7 was 614,183 head. The average steer dressed weight was 952 lbs., 2 lbs. below the prior week.
Boxed beef prices were mixed on just 98 loads, with the Choice cutout up $5.85 to $320.69 and the Select cutout down $1.44 to $284.11.
Feeder cattle
Feeder cattle futures were also lower, with the January contract down $2.52 to $254.47 and the March contract down $2.80 to $254.57. The CME Feeder Cattle Index was down 77 cents to $262.23.
Corn futures were higher, with the March contract up 3 cents to $4.40 and the May contract up 2 cents to $4.46.
Kansas: Winter Livestock in Dodge City sold 2,011 head on Wednesday. Compared to the last auction, feeder steers and heifers over 600 lbs. sold steady. Heifers under 600 lbs. sold steady to $15 higher on reputation heifers that were replacement quality. Benchmark steers averaging 777 lbs. sold for $241-262, averaging $253.87.
Nebraska: Bassett Livestock in Bassett sold 5,575 head on Wednesday. Compared to the previous auction, there were smaller packages of consignments as steers traded unevenly steady and no comparable offerings for heifers. Benchmark steers averaging 733 lbs. sold for $287-305, averaging $296.58.
New Mexico: Clovis Livestock in Clovis sold 1,460 head on Wednesday. Compared to the last auction, steer calves 300-350 lbs. and 500-550 lbs. sold $2-10 higher, while 400-450 lbs. and 550-600 lbs. were $2-6 lower. Steer yearlings 600-700 lbs. sold $8-12 higher, and 700-800 lbs. were $6-8 lower. Heifer calves 400-550 lbs. sold $2 -5 higher, while 300-350 lbs. and 550-650 lbs. were $6 lower. Feeder heifer yearlings 650-800 lbs. sold steady to $9 higher. Benchmark steers averaging 728 lbs. sold for $244-257, averaging $249.36.
Oklahoma: OKC West in El Reno sold 7,621 head on Wednesday. Compared to the last auction, feeder steers under 750 lbs. sold mostly $10-12 higher, and over 750 lbs. were steady to $4 higher. Feeder heifers were too lightly tested for a trend, but a steady undertone was noted. Benchmark steers averaging 775 lbs. sold for $258-274, averaging $267.25. — Charles Wallace, WLJ contributing editor
