Thursday markets
The cattle complex closed higher with fundamental support from traders.
Live cattle closed higher, with the December contract up 50 cents to $152.42 and the February contract up 37 cents to $153.92.
“The live cattle market is trading higher into Thursday’s afternoon as the market is pleased with the fact that boxed beef prices closed higher Wednesday afternoon and that prices are mixed in Thursday’s midday report,” ShayLe Stewart, DTN livestock analyst, wrote in the midday comments. “The live cattle contracts are trading higher into Thursday’s afternoon as the market has found support technically and hopes that cash prices grow stronger as the day trades on.”
Cash trade was light, with 6,787 head selling between $156-158, averaging $157.10. Dressed steers averaged $246.56.
Only a few scattered deals have been reported in parts of Texas this afternoon at $154, $1 lower than the prior week’s weighted averages. Some asking prices remain firm at around $156 to $157 in the South and $249-plus in the North.
On the formula side, 34,300 head averaging 898 lbs. sold for an average of $252.63.
Slaughter for today is expected to be 126,000 head, 2,000 head lower than the previous week.
Actual slaughter for the week ending Nov. 26 was 589,008 head (46.5% steers, 32.6% heifers). Dressed steers were 842 lbs.
Boxed beef closed mixed on 146 loads, with the Choice cutout down $1.68 to $247.28 and the Select cutout up 78 cents to $220.55.
USDA’s weekly Export Sales report for the Nov. 25 to Dec. 1 period showed net sales of 1,600 metric tons (mt) for 2022, primarily for China (4,800 mt), Japan (1,600 mt), Mexico (900 mt), Canada (500 mt) and Taiwan (400 mt), which were offset by reductions primarily for South Korea (7,900 mt). Exports were 16,900 mt, primarily to South Korea (5,100 mt), Japan (4,300 mt), Mexico (1,900 mt), China (1,600 mt) and Taiwan (1,300 mt).
Feeder cattle
Feeder cattle were also higher, with the January contract up $2.57 to $183.47 and the March contract up $1.80 to $185.05. The CME Feeder Cattle Index was up 21 cents to $179.23.
“Feeder cattle traders could be feeling more confident as recent boxed beef prices have found some support, which could incentivize buyers to restock their pens as they believe that packer demand will remain,” Stewart wrote.
Corn closed higher, with the December contract up 4 cents to $6.32 and the March contract up a penny to $6.42.
Kansas: Winter Livestock in Dodge City sold 4,411 head Wednesday. Compared to the last auction, steer and heifer calves 400-500 lbs. sold $4-5 higher. Feeder steers and heifers 500-900 lbs. sold unevenly steady. Benchmark steers averaging 769 lbs. sold between $173-179, averaging $177.45.
Nebraska: Bassett Livestock Auction in Basset sold 4,800 head Wednesday. A market trend could not be established for steers and heifers. Benchmark steers averaging 728 lbs. sold between $201.25-201.50 and averaged $201.45.
New Mexico: Clovis Livestock Auction in Clovis sold 2,312 head Wednesday. Compared to the last auction, steer calves 300-450 lbs. sold $20 lower; 450-500 lbs. sold $3-5 lower. Heifer calves 300-350 lbs. traded $5-7 higher, and 350-500 lbs. were $3-6 lower. Steers and heifers over 500 lbs. were steady to $5 higher on comparable sales. A group of steers averaging 785 lbs. sold for $159.
Oklahoma: OKC West in El Reno sold 10,427 head Wednesday. Compared to the last auction, feeder steers traded $2-4 higher. Feeder heifers sold mostly steady on limited comparable sales. Steer calves sold $8-12 higher, with instances of as much as $15 higher. Heifer calves traded $6-10 higher. Benchmark steers averaging 715 lbs. sold between $175-189 and averaged $180.02.
South Dakota: Hub City Livestock Auction in Aberdeen sold 4,864 head Wednesday. Compared to the previous auction, yearling steers 900-1,000 lbs. sold $4-6 higher. The best test on yearling heifers 900-950 lbs. was mostly steady. A group of steers averaging 768 lbs. sold between $171-174, averaging $172.71. — Charles Wallace, WLJ editor
