Wednesday markets
Cattle futures closed higher on the strength of cash trade. Our office will be closed on Thanksgiving Day, Nov. 28, and Friday, Nov. 29. All of us at WLJ wish you and your family a bountiful holiday.
Live cattle futures closed higher, with the December contract up $1.10 to $188 and the February contract up 90 cents to $186.60.
Cash trade was active, with 40,707 head sold. Live steers sold for $188-191, and dressed steers sold for $294-306.
On the formula side, 29,000 head averaging 902 lbs. sold for an average of $297.66.
“Live sales have been marked in Kansas at $190, which is $3-4 higher than last week’s weighted average, and a handful of dressed sales have been marked in Nebraska at $295, which is $5 higher than last week’s weighted average,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments. “What was especially interesting about the sales made in Nebraska was that packers committed the cattle for delivery on the weeks of 12/2/2024 and 12/16/2024, which indicates that they’re short-bought and in need of more cattle to keep up with demand.”
Today’s slaughter is estimated to be 124,000 head, bringing the projected weekly total to 370,000 head.
“As enthusiastic as some bulls may be today, sideways action is more likely to occur during December than further upside,” Cassie Fish, market analyst, wrote for The Beef. “Because beef demand continues to fuel the bull fire, packers are inspired to run the hours necessary to fulfill orders. With record numbers of cattle-on-feed and record out-weights, fed cattle supplies are not short. But as has been the case in 2024, cattle feeders retain leverage by feeding cattle more days.”
Boxed beef prices were lower on 175 loads, with the Choice cutout down 31 cents to $311.26 and the Select cutout down $1.19 to $274.30.
Feeder cattle
Feeder cattle futures also closed higher, with the January contract up 67 cents to $258.77 and the March contract up 82 cents to $257.30. The CME Feeder Cattle Index was up 23 cents to $255.94.
“Feeder cattle futures have been quiet today after a remarkable rally this month of $30/cwt in January feeders back to levels seen last July,” Fish wrote.
Corn futures closed mixed, with the December contract down 4 cents to $4.15 and the March contract unchanged at $4.28.
Colorado: Winter Livestock in La Junta sold 1,091 head on Tuesday. Compared to the last auction, feeder steers sold $4-8 lower across all weight classes with instances of sharply lower.
Feeder heifers sold $2-7 lower across all weight classes with instances of sharply lower. A group of steers averaging 636 lbs. sold for $275-281.50, averaging $277.94.
Montana: Miles City Livestock in Miles City sold 1,814 head on Tuesday. Compared to the previous auction, steers 400-599 lbs. sold $5-15 higher and over 600 lbs. sold mostly steady to $5 higher. Heifers 400-499 lbs. sold $5-15 higher and over 500 lbs. sold generally steady on like quality offerings in a narrow comparison. Yearling steers and heifers were too lightly tested to develop an accurate market trend, but steady undertones were noticed. A group of unweaned steers averaging 629 lbs. sold between $298-303, averaging $299.34. — Charles Wallace, WLJ contributing editor
