Thursday markets
The cattle complex closed mixed ahead of tomorrow’s Cattle on Feed report. Markets and our office will be closed tomorrow and Monday. From the WLJ family to yours, we wish you a Merry Christmas!
Live cattle futures were lower, with the December contract down 22 cents to $155.90 and the February contract down 40 cents to $157.30.
“The live cattle complex is trading mixed into Thursday’s afternoon with the market’s nearby contracts trading slightly lower while the deferred markets cling to their higher trend,” ShayLe Stewart, DTN livestock analyst, wrote in the midday comments. “It was a big move for the live cattle market to break out Wednesday afternoon and surpass resistance in both the February and April contracts. Even though those markets may be trading mildly lower right now, the simple fact that they’re still trading above the original resistance threshold points is quite commendable.”
Cash trade was again light, with 6,743 head selling between $155-157, averaging $156.40. Dressed steers averaged $248.85.
The Daily Livestock Report wrote about the pre-report estimates for Friday’s Cattle on Feed report, showing a broad disagreement about marketings and placements for November. The analysts estimate that on average, placements were 4.2% lower than the previous year at 95.8%. Marketings for November are projected to be up by 1% compared to a year ago.
“This is consistent with fed cattle slaughter during the month, which was up 1.2% from the previous year,” the Daily Livestock Report wrote. Analysts estimate the total on feed as of Dec. 1 was 2.9% lower than the previous year.
Slaughter for today is expected to be 113,000 head, 9,000 head below last week. Actual slaughter for the week ending Dec. 10 was 648,319 head. Steer dressed weights were 838 lbs.
Boxed beef prices were higher on 91 loads, with the Choice cutout up 35 cents to $265.21 and the Select cutout was $5.52 to $241.81.
Feeder cattle
Feeder cattle futures closed higher, with the January contract up 15 cents to $183.97 and the March contract up 72 cents to $186.45. The CME Feeder Cattle Index was down 31 cents to $177.83.
“The feeder cattle complex continues to trade higher despite the fact that the corn market is yet again trading higher too,” Stewart wrote. “At this point, traders seem to be valuing the move in the live cattle complex and the expectation that Friday’s Cattle on Feed report will show both lighter on feed numbers and fewer placements as more of a deciding factor than the slight uptick in Thursday’s corn market.”
Corn futures closed lower, with the March and May contracts down 2 cents a bushel to $6.60 for both contracts.
Colorado: Winter Livestock in La Junta sold 1,486 head Tuesday. There were not enough sales for an accurate comparison. A group of steers averaging 727 lbs. sold between $173.50-177 and averaged $175.20.
Kansas: Winter Livestock in Dodge City sold 1,915 head Wednesday. Compared to the last auction, steers and heifers 400-900 lbs. sold unevenly steady on light receipts. A group of steers averaging 765 lbs. sold for $163.
Nebraska: Huss Livestock Market in Kearney sold 2,832 head Wednesday. Compared to the previous auction, steers under 650 lbs. sold steady to $5 higher, and 650-900 lbs. sold steady to $4 lower. Heifers over 550 lbs. sold steady to $3 lower. Benchmark steers averaging 785 lbs. $178-183, averaging $180.57.
South Dakota:Hub City Livestock in Aberdeen sold 4,023 head Wednesday. Compared to the last auction, steer calves 550-600 lbs. sold mostly steady, yearling steers 850-900 lbs. and 950-1,000 lbs. sold $3-4 lower. Heifer calves 550-600 lbs. sold $4-5 lower. —Charles Wallace, WLJ editor
