Thursday markets
Cattle futures continue to trade back and forth, closing mixed.
“Back and forth, CME cattle futures continue to go,” wrote Cassie Fish, market analyst, for The Beef. “Futures seem comfortable in their well-worn trading range, though they have spent most of today lower. The market does act a bit tired, but is it tired enough to accelerate to the downside?”
Live cattle futures closed lower, with the February column down $1.32 to close at $235.50 and the April contract $1.45 lower to $237.27.
Cash trade had yet to develop, with only 156 head sold.
On the formula side, 24,900 head averaging 936 lbs. sold for an average of $373.51.
“Because cattle are in very tight hands and are priced higher than last week at the same time, packers are hemorrhaging red ink; there is a big standoff in the country,” Fish wrote. “A very few bids have surfaced in the north today at steady with last week’s dressed trade.”
Today’s slaughter is estimated to be 112,000 head, 2,000 head below last week’s.
Actual slaughter for the week ending Jan. 17 was 566,512 head. The average steer dressed weight was 984 lbs., down 1 lb. from the prior week.
Boxed beef prices were lower on 96 loads, with the Choice cutout down $2.08 to $367.66 and the Select cutout $2.85 lower to $360.72.
Feeder cattle
Feeder cattle futures closed mixed, with the January contract $1.07 higher to $369.17, the March contract 72 cents lower to $365.12 and the April contract down $1.07 to $363.22.
The CME Feeder Cattle Index was up $2.70 to $366.69.
Corn futures closed slightly higher, with the March contract up a fraction to $4.30 and the May contract up a penny to $4.39.
Kansas: Winter Livestock in Dodge City sold 752 head on Wednesday. Compared to the previous auction, there were not enough steers over 600 lbs. for a market test. Steers under 600 lbs. sold unevenly steady, but black lots sold $15 higher, while the red lots were fleshy and unweaned. There were not enough heifers for a market test across all weights. Benchmark steers averaging 785 lbs. sold for $357-369.25, averaging $366.34.
Nebraska: Bassett Livestock in Bassett sold 6,475 head on Wednesday. Compared to the last auction, steers 550-750 lbs. traded unevenly steady. Heifers 550-600 lbs. traded $3-10 higher, and 650 lbs. sold $9 lower. Benchmark steers averaging 773 lbs. sold for $375-402.50, averaging $385.21.
North Dakota: Kist Livestock in Mandan sold 1,539 head on Wednesday. Compared to the previous auction, steers 650-750 lbs. were $15 higher and feeder heifers 550-650 lbs. sold $2-8 higher. Other weights were not well tested for comparison this week. Benchmark steers averaging 732 lbs. sold for $375-409, averaging $402.21.
Wyoming: Torrington Livestock in Torrington sold 3,760 head on Wednesday. Compared to the last auction, feeder steers and heifers traded steady to $10 higher. Benchmark steers averaging 756 lbs. sold for $384-403.50, averaging $396.49. — Charles Wallace, WLJ contributing editor
