Thursday markets
The cattle complex closed mixed on profit-taking despite steady to higher cash trade.
“Everyone who trades cattle futures knows the market is very technically overbought on daily and weekly metrics, so today’s break is not shocking,” Cassie Fish, market analyst, wrote for The Beef. “The larger question is the important one: did the market top?”
Live cattle futures were lower, with the February contract down $2.55 to $204.47 and the April contract down $3.45 to $201.50.
“The live cattle complex is currently being pulled in two very opposite directions as, technically speaking, the market is enduring what appears to be a midweek correction as the contracts are falling anywhere from $2-3 lower, all while the cash cattle market is again trading $6-7 higher in the Southern plains,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments.
Cash trade was active, with 17,747 head sold. Live steers sold for $208-211, and dressed steers sold between $325-330.
On the formula side, 33,800 head averaging 923 lbs. sold for an average of $327.56.
Today’s slaughter is estimated to be 122,000 head, 1,000 head lower than a week earlier.
Actual slaughter for the week ending Jan. 18 was 601,259 head. The average steer dressed weight was 954 lbs., 8 lbs. below a week earlier.
Boxed beef prices were lower on 138 loads, with the Choice cutout down $3.06 to $327.48 and the Select cutout down $4.77 to $315.90.
Feeder cattle
Feeder cattle futures were mixed, with the January contract up $1.35 to $281.90 and the March contract down $2.07 to $273.20.
The CME Feeder Cattle Index was up 39 cents to $279.45.
Corn futures closed lower, with the March and May contracts down 6 cents to $4.90 and $5.01, respectively.
Kansas: Winter Livestock in Dodge City sold 4,084 head on Wednesday. Compared to the previous auction, feeder steers 400-700 lbs. sold $15 higher, and over 750 lbs. sold $10-12 higher. Heifers 400-700 lbs. sold $10-20 higher and over 700 lbs. sold $4-12 higher. Benchmark steers averaging 775 lbs. sold for $275.50-291.50, averaging $282.15.
Nebraska: Bassett Livestock in Bassett sold 5,510 head on Wednesday. Compared to the last auction, steers 500-800 lbs. traded $3-8 higher. Heifers 500 lbs. traded $10 higher and 600-650 lbs. sold $5-14 higher. Benchmark steers averaging 719 lbs. sold for $311-328, averaging $318.80.
Oklahoma: OKC West in El Reno sold 12,790 head on Wednesday. Compared to the last auction, feeder steers traded $3-5 higher. Feeder heifers sold $1-3 higher. Steer and
heifer calves sold $8-15 higher. Benchmark steers averaging 721 lbs. sold for $286-300, averaging $294.15. — Charles Wallace, WLJ contributing editor
