Thursday markets
Cattle futures resumed their uptrend, led by feeder cattle as buyers stepped in to purchase the midweek dip despite the absence of cash trade.
“CME cattle futures have resumed the uptrend today after a short-term pause yesterday, with feeder cattle futures and back month live cattle futures leading the way,” wrote Cassie Fish, market analyst, for The Beef. “There certainly isn’t any new news to fuel the fire.”
Live cattle futures closed higher, with the February contract 90 cents higher to $236.05 and the April contract $1.10 higher to $238.42.
Cash trade has yet to develop, with only 444 head sold—not enough for a market trend.
On the formula side, 33,100 head averaging 965 lbs. sold for an average of $368.54.
“Because of their losses, packers have been slow about bidding for cattle this week,” Fish continued. “There has been very little trade reported and very few bids. Cattle feeders are confident cash will trade higher and February LC is premium to last week’s cash by $4/cwt.”
Today’s slaughter is estimated to be 117,000 head, the same as the prior week.
Actual slaughter through the week ending Jan. 3 was 468,331 head. The average steer dressed weight was 989 lbs., 7 lbs. above the previous week.
Boxed beef prices were higher on 150 loads, with the Choice cutout $2.24 to $360.77 and the Select cutout up $2.06 to $359.71.
Feeder cattle
Feeder cattle futures closed up triple digits, with the January contract $3.67 higher to close at $362.42 and the March contract up $4.85 to $364.55.
The CME Feeder Cattle Index was down 27 cents to $369.42.
Corn futures closed lower, with the March contract down a penny to $4.20 and the May contract 2 cents lower to $4.27.
Kansas: Winter Livestock in Dodge City sold 2,187 on Wednesday. Compared to the last auction, steers over 700 lbs. sold steady to weak, while steers 550-700 lbs. sold $10-15 higher. Heifers sold steady to $10 higher across all weight classes. Benchmark steers averaging 728 lbs. sold between $384-400.50 and averaged $388.98.
Nebraska: Bassett Livestock in Bassett sold 5,605 head on Wednesday. Compared to the last auction, steers 500-550 lbs. traded $14 higher, 600-700 lbs. sold $2-6 lower, and 750 lbs. steers traded $3 higher. Comparable heifer offerings 550-600 lbs. traded $7-9 lower. Benchmark steers averaging 731 lbs. sold between $402-427, averaging $412.23.
Oklahoma: OKC West in El Reno sold 13,430 head on Wednesday. Compared to the last auction, feeder steers sold $2-7 higher, except for 850-1,000 lbs. $2-7 lower. Feeder heifers over 750 lbs. sold $5-15 higher, and under 750 lbs. 2.00-7.00 higher. Benchmark steers averaging 724 lbs. sold between $365-400, averaging $386.64. — Charles Wallace, WLJ contributing editor
