Thursday markets
The livestock complex bolted out of the chute to start the 2025 trading year.
“CME cattle futures are on fire this first day of 2025, surging to life-of-contract highs in most live and feeder cattle futures contracts with ease,” Cassie Fish, market analyst, wrote for The Beef.
Live cattle futures were triple digits higher, with the February contract up $2 to $193.60 and the April contract up $1.77 to $196.05.
Cash trade was moderate, with 7,849 head sold. Live steers sold for $195-199.50, and dressed steers sold between $310-315.
On the formula side, 27,000 head averaging 933 lbs. sold for an average of $310.61.
“But it is the negotiated cash cattle market that is the real powder keg,” Fish said. “Packers have been unable to buy enough inventory the past two weeks and are in dire need to reload. There has been some light trade at higher money in eastern Nebraska, $310 dressed and $198 in western Nebraska has been passed. There has also been light trade in Kansas at $195. All in all $2 to mostly $3 higher than last week and not unexpected.”
Today’s slaughter is estimated to be 125,000 head, 6,000 head above a week earlier.
Actual slaughter for the week ending Dec. 21 was 615,629 head. The average steer dressed weight was 953 lbs., 1 lb. above the prior week.
Boxed beef prices were slightly lower on 116 loads, with the Choice cutout down 74 cents to $323.48 and the Select cutout down 29 cents to $294.23.
Feeder cattle
Feeder cattle climbed over $3, with the January contract up $3.45 to $266.47 and the March contract up $3.22 to $266.20. The CME Feeder Cattle Index was up 72 cents to $261.77.
“It will be especially interesting to watch feeder cattle sales over the next two weeks, as buyer demand will likely be strong given that the market has been on a holiday hiatus and buyers will likely have large orders to fill,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments.
Corn futures were slightly higher, with the March and May contracts gaining a penny to $4.59 and $4.67, respectively.
There are no auction markets to report due to the New Year’s holiday. — Charles Wallace, WLJ contributing editor
