Thursday markets
Traders put it into high gear and propelled cattle futures $3+ higher.
Live cattle futures soared, with the February contract up $4.30 to $198 and the April contract up $3.17 to $198.70.
“CME cattle futures have resumed their uptrend with a vengeance today with lead options February LC and January FC leading the charge,” Cassie Fish, market analyst, wrote for The Beef. “February made a new high for the move in a big way and is closing in on its contract high of $199.55. Yesterday’s break is a distant memory.”
Due to the National Day of Mourning for former President Jimmy Carter, USDA did not provide some reports. The latest cash trade report showed 3,817 head sold through this morning at $200.
“The powerful rally continues in the negotiated cash fed cattle market today, with bids of $203 live and $320 dressed common,” Fish said. “Several thousand have traded at these prices, which are new all-time highs. The same problem that has plagued beef packers continues to be an issue—being able to purchase enough volume each week. As a result, slaughter schedules are expected to be reduced as packers battle red ink and need to support cutout values.”
Today’s slaughter is estimated to be 122,000 head, 3,000 head below a week earlier.
Boxed beef prices were higher on 116 loads, with the Choice cutout up $2.17 to $330.78 and the Select cutout up $1.46 to $308.35.
Feeder cattle
Feeder cattle futures also closed higher, with the January contract up $4.05 to $269.62 and the March contract up $3.75 to $268.72. The CME Feeder Cattle Index was up 57 cents to $272.86.
Corn futures were higher, with the March and May contracts up 2 cents to $4.56 and $4.64, respectively.
Kansas: Winter Livestock in Dodge City sold 1,405 head on Wednesday. Compared to the previous auction, feeder steers over 650 lbs. sold $10-15 higher, while heifers over 750 lbs. sold $8-10 higher. Steers and heifers under 650 lbs. sold $10-20 higher. Benchmark steers averaging 790 lbs. sold for $260.50-274, averaging $269.37.
Nebraska: Bassett Livestock in Bassett sold 6,530 head on Wednesday. Due to the lack of a recent auction, an accurate comparison could not be made, but a higher undertone was noted. Benchmark steers averaging lbs. sold for $302-319.50, averaging $310.98.
Oklahoma: OKC West in El Reno sold 6,848 head on Wednesday. Compared to the previous auction, feeder steers sold $8-12 higher and feeder heifers traded $4-7 higher. Benchmark steers averaging 728 lbs. sold for $274-295, averaging $282.99. — Charles Wallace, WLJ contributing editor
