Tuesday markets
The commodity markets started the new year lower. Boxed beef prices climbed sharply higher, signaling demand for beef has not waned.
Live cattle futures closed lower, with the February contract down $1.05 to $156.85 and the April contract down 92 cents to $160.87.
Cash trade was nonexistent, with 107 head sold—not enough for a market trend. On the formula side, 32,600 head averaging 878 lbs. sold for an average of $252.91.
“It’s expected that cash cattle prices will trade at least steady if not potentially higher again this week as packers set out to run a somewhat normal kill schedule,” ShayLe Stewart, DTN livestock analyst, wrote in the midday comments. “Determining what a normal kill schedule will be in 2023 remains a wildcard as packers are going to be closely monitoring their margins. Higher boxed beef prices allow them more margin and security, but the advancements made in the cash sector will pressure them well through 2023 and likely into 2024.”
Slaughter for today is expected to be 126,000 head, 2,000 head below last week. There was a light slaughter on Monday of 7,000 head.
Boxed beef prices were higher on 117 loads, with the Choice cutout up $4.97 to $286.95 and the Select cutout up $3.70 to $254.63.
Feeder cattle
Feeder cattle futures were lower, with the January contract down $1 to $182.70 and the March contract down $1.45 to $184.77. The CME Feeder Cattle Index was unchanged at $181.93.
“It’s been a little over two weeks since the market has last seen sale barns run their normal schedules, which will likely mean that buyers are anxious to hit the auction yards and see what prices pan out to be early this year,” Stewart wrote.
Corn futures were also lower, with the March contract down 8 cents to $6.70 and the May contract down 7 cents to $6.70.
Iowa: Russell Livestock Feeder Cattle in Russell sold 5,566 head Monday. Due to the holidays, there was no recent comparison for a trend. Benchmark steers averaging 773 lbs. sold between $160-187.60 and averaged $179.30.
Missouri: Joplin Regional Stockyards in Carthage sold 10,017 head Monday. Compared to the last auction two weeks ago, feeder steers traded $4-7 higher, with feeder heifers trading $6-11 higher. Benchmark steers averaging 783 lbs. sold between $178-191.50, averaging $182.95.
South Dakota: Sioux Falls Regional Cattle in Worthing sold 3,584 head Monday. Compared to the last auction two weeks ago, feeder steers sold steady to $3 higher, with instances of $12 higher, except 450-500 lbs., 700-750 lbs. and 800-850 lbs. sold steady to $1 lower. Feeder heifers sold steady to $3 higher, except 550-700 lbs. were steady to $4 lower. Benchmark steers averaging 712 lbs. sold between $182-190, averaging $185.87. — Charles Wallace, WLJ editor
