Thursday markets
After trading lower, cattle futures rallied back and closed in the green.
“CME cattle futures made new lows for the week this morning only to claw back to green,” wrote Cassie Fish, market analyst, for The Beef. “Futures remain overbought and technical indicators have rolled over. But the market is really doing more fence sitting than anything else. Key moving averages reside just underneath today’s price action.”
Live cattle futures closed slightly higher, with the February contract up 75 cents to $235.27 and the April contract $1.05 higher to $236.22.
Cash trade started to develop, with 8,693 head sold. Live steers sold between $228-232, and dressed steers sold for $365.
On the formula side, 33,400 head averaging 972 lbs. sold for an average of $366.26.
“This week’s negotiated fed cattle trade has been very slow to develop,” Fish continued. “There was a reported trade in Iowa at $228/cwt trade in Iowa on 556 head, which was $3 lower and certainly well below February LC trading at $235. No reported trade yet in Nebraska, Kansas or Texas.”
Today’s slaughter is estimated to be 117,000 head.
Actual slaughter for the week ending Dec. 27 was 425,745 head. The average steer dressed weight was 982 lbs.
Boxed beef prices were higher on 166 loads, with the Choice cutout $2.51 higher to $356.79 and the Select cutout up $2.78 to $352.06.
Feeder cattle
Feeder cattle closed over $2 higher, with the January contract up $2.87 to $362.47 and the March contract $2.22 higher to close at $357.72.
The CME Feeder Cattle Index was up $4.92 to $368.07.
Corn futures closed on both sides of steady, with the March contract down a fraction at $4.46 and the May contract unchanged to $4.54.
Kansas: Winter Livestock in Dodge City sold 4,335 head on Wednesday. Compared to the last auction, steers over 700 lbs. sold $10-20 higher, while heifers over 700 lbs. sold $10-15 higher. Steer and heifer calves sold $10-20 higher. Benchmark steers averaging 729 lbs. sold for $381-402 and averaged $392.41.
Nebraska: Bassett Livestock in Bassett sold 6,535 head on Wednesday. With the first reported sale in several weeks, an adequate market comparison was not available, though a sharply higher undertone was evident. Benchmark steers averaging 774 lbs. sold for $391-407 and averaged $398.47.
Oklahoma: OKC West in El Reno sold 10,128 head on Wednesday. Compared to the previous auction, feeder steers over 750 lbs. sold $10-15 higher, and under 750 lbs. traded $15-20 higher. Feeder heifers over 750 lbs. sold steady to $5 higher, and under 750 lbs. traded $5-10 higher. Steer calves sold $25-35 higher, except 500-600 lbs. were $8-16 higher. Heifer calves sold $15-25 higher. Benchmark steers averaging 777 lbs. sold for $354-371 and averaged $362.69. — Charles Wallace, WLJ contributing editor
