The market finished ahead of the Christmas holiday on a higher note, with both live and feeder cattle futures higher. Boxed beef prices were dramatically higher, nearing their highs for the month.
Live cattle futures closed higher, with the December contract up 92 cents to $155.90 and the February contract up $2.45 to $157.30.
Cash trade was light this week, with 12,500 head sold through Thursday. Live steers sold from $155-159, averaging $156, and dressed steers sold for an average of $247. Trade developed in the North $1 higher than last week’s weighted average of $249. The South was locked in a standoff of $156-157, steady with last week.
Cash trade for the week ending Dec. 18 was 74,567 head. Live steers averaged $155.58, and dressed steers averaged $247.81.
The national weekly direct beef type price distribution for the week of Dec. 12-19 was the following on a live basis:
• Negotiated purchases: $155.63.
• Formula net purchases: $158.43.
• Forward contract net purchases: $158.12.
• Negotiated grid net purchases: $158.50.
On a dressed basis:
• Negotiated purchases: $247.77.
• Formula net purchases: $253.09.
• Forward contract net purchases: $237.18.
• Negotiated grid net purchases: $249.86.
Through Thursday, slaughter totaled 459,000 head, compared to 486,000 head a week earlier. Total slaughter for a week earlier is estimated at 629,000 head. Actual slaughter for the week ending Dec. 10 was 648,319 head. Steer dressed weights were 838 lbs.
“Packers have cut kills, slowed chain speeds to boost the cutout and (slowed) the need for cattle inventory,” Cassie Fish, market analyst for The Beef, wrote on Wednesday. “Week-to-date slaughter is down 20k head this week compared to a week ago. Maybe the packer can limp through this week, but they will have to replenish inventory next week.”
Boxed beef prices rose dramatically, with the Choice cutout up $10.91 to $265.21 and the Select cutout up $13.30 to $241.81.
Beef net sales were 4,500 metric tons (mt) for 2022, primarily for Japan (3,500 mt), South Korea (600 mt) and Mexico (500 mt).
The Daily Livestock Report wrote about the pre-report estimates for Friday’s Cattle on Feed report, showing a broad disagreement about marketings and placements for November. The analysts estimate that on average, placements were 4.2% lower than the previous year at 95.8%. Marketings for November are projected to be up by 1% compared to a year ago.
“This is consistent with fed cattle slaughter during the month, which was up 1.2% from the previous year,” the Daily Livestock Report wrote. Analysts estimate the total on feed as of Dec. 1 was 2.9% lower than the previous year.
Feeder cattle
Feeder cattle futures closed higher, with the January contract up 92 cents to $183.97 and the March contract up $1.78 to $186.45. The CME Feeder Cattle Index was down $1.67 to $177.83.
“Feeder cattle sales through the new year will be sparse, as most auction houses held their last sale of the year last week,” Stewart wrote in Tuesday’s midday comments. “Come the second week of January, however, interest should be hot.”
Corn contracts rose 7 cents per bushel for both the March and May contracts to $6.60 each.
Colorado:Winter Livestock in La Junta sold 1,486 head Tuesday. There were not enough sales for an accurate comparison. A group of steers averaging 727 lbs. sold between $173.50-177 and averaged $175.20.
Kansas:Winter Livestock in Dodge City sold 1,915 head Wednesday. Compared to the last auction, steers and heifers 400-900 lbs. sold unevenly steady on light receipts. A group of steers averaging 765 lbs. sold for $163.
Nebraska:Tri-State Livestock Auction in McCook sold 2,017 head Monday. Compared to the previous auction, steers weighing 700-850 lbs. sold $2-6 lower. There were not enough sales to show any other comparison on steers and heifers. Benchmark steers averaging 715 lbs. sold between $184-190, averaging $187.75.
New Mexico:Roswell Livestock Auction in Roswell sold 1,465 head Monday. Compared to the last auction, steer and heifer calves sold mostly $15-20 higher, with instances of $25-27 higher. Feeder steers sold $5-7 higher on comparable sales. Feeder heifers were not well tested. A group of steers averaging 731 lbs. sold between $159-172.50 and averaged $164.86.
Missouri:Joplin Regional Stockyards in Carthage sold 9,019 head Monday. Compared to the previous auction, feeder steers traded $5-8 lower and feeder heifers traded $2-5 lower. Benchmark steers averaging 720 lbs. sold between $172-183, averaging $178.59.
Oklahoma:Oklahoma National Stockyards in Oklahoma City sold 7,743 head Monday. Compared to the last auction, feeder steers under 800 lbs. sold steady to $4 higher, and feeder heifers were steady. Steer calves sold $4-8 higher, and heifer calves were steady to $4 higher. Benchmark steers averaging 766 lbs. sold between $171-185 and averaged $178.15.
South Dakota:Hub City Livestock in Aberdeen sold 4,023 head Wednesday. Compared to the last auction, steer calves 550-600 lbs. sold mostly steady, yearling steers 850-900 lbs. and 950-1,000 lbs. sold $3-4 lower. Heifer calves 550-600 lbs. sold $4-5 lower. —Charles Wallace,WLJeditor
