Thursday markets
Cattle futures closed mixed as traders await Friday’s Cattle on Feed report.
“It’s Thursday and CME cattle futures are posting yet another two-sided, choppy day with the bear spreads continuing to work,” wrote Cassie Fish, market analyst, for The Beef. “The bear spreads have had a dramatic move since topping in mid-December as the back end narrows its discount to February and April LC almost hourly.”
Live cattle futures closed slightly lower, with the February contract down 72 cents to $232.37 and the April contract 12 cents to $234.82.
Cash trade still has not developed, with only 308 head sold—not enough for a market trend.
On the formula side, 22,500 head averaging 964 lbs. sold for an average of $369.56.
“This week’s negotiated cash fed cattle trade has been extremely slow,” Fish wrote. “The cash market gains so far in January have been modest and February LC is trading just about par with last week’s 5-area average.”
Today’s slaughter is estimated to be 114,000 head, 3,000 head lower than the prior week.
Actual slaughter for the week ending Jan. 10 was 560,869 head. The average steer dressed weight was 985 lbs., 3 lbs. lower than the prior week.
Boxed beef prices were mixed on 95 loads, with the Choice cutout $1.34 higher to $367.45 and the Select cutout 72 cents lower to $361.73.
The pre-report estimates for Friday’s Cattle on Feed report show that feedlots with 1,000 head or greater will be 96.8% for cattle on feed in January. Placements in December are estimated to be 93.1%, and marketings for December are predicted at 101.7%.
Feeder cattle
Feeder cattle closed mixed, with the January contract 50 cents higher to $363.72 and the March contract 10 cents lower to close at $359.27.
Corn futures closed higher, with the March and May contracts up 2 cents to $4.24 and $4.32, respectively.
Kansas: Winter Livestock in Dodge City sold 3,774 head on Wednesday. Compared to the last auction, steers over 900 lbs. sold $20 higher and heifers over 900 lbs. sold $14 higher. Steers and heifers under 900 lbs. sold $4-6 lower. Benchmark steers averaging 716 lbs. sold for $369-394, averaging $379.45.
Nebraska: Huss Livestock in Kearney sold 4,047 head on Wednesday. Compared to the last auction, steers and heifers over 600 lbs. sold steady to $8 lower. Benchmark steers averaging 764 lbs. sold for $369-385 and averaged $377.20.
Oklahoma: OKC West in El Reno sold 10,367 head on Wednesday. Compared to the last auction, feeder steers and heifers sold $2-7 lower. Steer and heifer calves sold $10-20 lower. Benchmark steers averaging 773 lbs. sold for $353-370 and averaged $358.45.
Wyoming: Torrington Livestock in Torrington sold 4,695 head on Wednesday. Compared to the last auction, feeder steers and heifers traded $5-9 lower, with instances of $13 lower. Benchmark steers averaging 779 lbs. sold for $375-400, averaging $381.68. — Charles Wallace, WLJ contributing editor
