Thursday markets
The cattle complex closed lower, meeting some resistance and profit-taking from speculators.
Live cattle futures were lower, with the February contract down $1.92 to $196.60 and the April contract down $1.65 to $197.67.
“Upon rallying up to the market’s resistance at $198.50, traders have quickly pulled the live cattle contracts back lower, although they’re seeing support from stronger cash cattle prices this week,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments. “They’re not confident that the market’s current fundamental support is justifiably strong enough to break the resistance threshold. It’s also worth mentioning that last week we saw a big jump in the CFTC data for non-commercial positions, which could be adding to some of the market’s pressure as some profit taking could be taking place by traders.”
Cash trade was active, with 34,536 head sold. Live steers sold for $200-205, and dressed steers sold between $318-327.
On the formula side, 36,900 head averaging 929 lbs. sold for an average of $321.63.
Today’s slaughter is estimated at 122,000 head, 5,000 head above a week earlier.
Actual slaughter for the week ending Jan. 4 was 504,893 head. The average steer dressed weight was 959 lbs., 3 lbs. above the prior week.
“The USDA just released actual slaughter data for the week ended January 4, 2025, and steer carcass weights rose 3 pounds to 959 lbs. compared to 937 lbs. the same week a year ago,” Cassie Fish, market analyst, wrote for The Beef. “That’s one pound below the 2024 high of 960 lbs. When it’s finally tallied, 2024 beef production looks to be the fifth highest in history, higher than 2023, which is a testament to beef demand.”
Boxed beef prices were mixed on 142 loads, with the Choice cutout down 73 cents to $333.41 and the Select cutout up $1.34 to $319.38.
Feeder cattle
Feeder cattle closed in the red, with the January contract down $1.77 to $273.45 and the March contract down $2.07 to $267.72.
The CME Feeder Cattle Index was down 27 cents to $278.04.
Corn futures were lower, with the March contract down 4 cents to $4.47 and the May contract down 5 cents to $4.83.
Kansas: Winter Livestock in Dodge City sold 7,261 head on Wednesday. Compared to the previous auction, feeder steers over 700 lbs. sold $8 higher and under 550 lbs. sold $10 higher. Heifers over 700 lbs. sold steady and under 700 lbs. sold $10-15 higher. Benchmark steers averaging 775 lbs. sold for $261-282, averaging $273.57.
Nebraska: Bassett Livestock in Bassett sold 9,005 head on Wednesday. Compared to the last auction, steers and heifers traded unevenly steady. Benchmark steers averaging 719 lbs. sold for $299-321, averaging $311.57.
Oklahoma: OKC West in El Reno sold 11,119 head on Wednesday. Compared to the last auction, feeder steers sold $2-5 lower. Feeder heifers traded $3-6 higher. Steer and heifer
calves sold $10-15 higher. Benchmark steers averaging 771 lbs. sold for $268-278, averaging $274.33. — Charles Wallace, WLJ contributing editor
