Wednesday markets
The livestock complex closed mixed as traders looked for fundamental support, as cash trade has seen limited interest.
Live cattle futures closed mixed, with the December contract up 62 cents to $157.45 and the February contract down 7 cents to $157.80.
Cash trade was light, with 1,016 head selling for $158. Dressed steers sold for $248.
“No bids have surfaced yet in the market and given that packers know that feedlots in both the North and the South want more money than last week—trade will likely wait to develop until Thursday,” ShayLe Stewart, DTN livestock analyst, wrote in the midday comments. “Asking prices are noted at $158 plus in the South and $256 in the North.”
On the formula side, 25,100 head averaging 882 lbs. sold for an average of $253.60.
The national weekly direct beef type price distribution for the week of Dec. 19-26 was the following on a live basis:
• Negotiated purchases: $156.32.
• Formula net purchases: $157.80.
• Forward contract net purchases: $157.44.
• Negotiated grid net purchases: $160.52.
On a dressed basis:
• Negotiated purchases: $248.99.
• Formula net purchases: $252.90.
• Forward contract net purchases: $233.30.
• Negotiated grid net purchases: $249.30.
Slaughter for today is expected to be 128,000 head, 6,000 head above last week and 10,000 head above last year.
Boxed beef prices closed mixed on 102 loads, with the Choice cutout down 63 cents to $279.41 and the Select cutout up $1.64 to $247.28.
The Daily Livestock Report noted the Choice beef cutout has spiked in the last few days, mainly in part due to the extreme winter weather. As the cold negatively impacts cattle in feedlots, the full effect on cattle will be seen in January as the cold weather results in lower gains and delays in marketings.
“Feedlots already were more current than a year ago,” the Livestock Report wrote. “On December 1 the supply of cattle with +120 days on feed was estimated to be 76,000 head smaller than the previous year, and the lowest December 1 inventory of market-ready cattle since 2018. Add to this the stress of winter weather and availability suddenly plummets.”
Feeder cattle
Feeder cattle futures closed modestly higher, with the January contract up 37 cents to $183.47 and the March contract up 80 cents to $186.20. The CME Feeder Cattle Index was down 29 cents to $176.08.
“The market will likely continue this steady sideways chop well through the first of the year until sale barns resume their normal schedule and demand for calves and feeders can help influence the market,” Stewart wrote. “The feeder cattle complex will be closely monitoring both cash cattle prices in the hopes that they turn higher and corn prices as any uptick in price affects the feeder’s cost of gains gravely.”
Corn futures closed higher, with the March and May contracts up 8 cents a bushel to $6.82 and $6.81, respectively.
No auction reports for Tuesday, as most sale barns are closed for the holidays. — Charles Wallace, WLJ editor
