(Editor’s note: This report contains market information available as of Tuesday afternoon due to an earlier Christmas press schedule.)
Quiet holiday trade and reduced packer activity pushed futures mostly lower into the Christmas week.
Live cattle futures traded mostly lower through Tuesday. The December contract closed at $228.82, and the February contract closed at $230.
“To no one’s real surprise, following Monday’s stronger trade, the live cattle complex is back to trading lower as the market’s resistance at its 100-day moving average remains a difficult barrier to conquer,” wrote ShayLe Stewart, DTN livestock analyst, in her Tuesday midday comments.
Cash trade through Tuesday totaled 7,000 head. Live steers sold from $228-229, and dressed steers sold for $356.
“The week’s volume will likely be rather thin given that it’s the week of Christmas and packers will run reduced kill schedules both this week and next,” Stewart said.
Cash trade for the week ending Dec. 21 totaled 34,798 head. Live steers averaged $228.98, and dressed steers averaged $356.87.
Slaughter through Tuesday totaled about 244,000 head, compared to 231,000 head a week earlier. Total slaughter for a week earlier was estimated at 587,000 head. Actual slaughter for two weeks earlier was not yet reported as of WLJ press time.
Discussion has been swirling about Tyson closing its Lexington, NE, beef plant, with many wondering when operations will begin to slow. Cassie Fish, market analyst in The Beef, noted on Tuesday that expectations are for the plant to run only a single shift after Christmas until shutting down on Jan. 20.
“This massive change will have repercussions throughout the cattle feeding and packing industry as cattle feeders establish new relationships with competing packers in some cases,” Fish said. “Plans for the timing of the elimination of the second shift at the Amarillo plants are less specific at this time. Bottomline, 7,800 head of fed cattle slaughter capacity will be terminated as of January 20.”
Boxed beef prices began trading lower over the week. The Choice cutout closed at $355.77, and the Select cutout closed at $349.59.
USDA released its latest Cattle on Feed report on Dec. 19. As of Dec. 1, total cattle and calves on feed totaled 11.7 million head, down 2% from year-ago levels. Placements were 11% lower, and marketings were 12% lower—the second lowest for November since reporting began in 1996. Other disappearance totaled 53,000 head.
Feeder cattle
Feeder cattle futures also traded mostly lower. The January contract closed at $344.62, and the March contract closed at $339.
The CME Feeder Cattle Index closed higher at $353.08.
Corn futures traded mostly higher, with the March contract closing at $4.47 and the May contract at $4.55.
Most sale barns were closed through Christmas week.
South Dakota: Sioux Falls Regional in Worthing sold 3,205 head on Monday. Compared to a week earlier, steer calves under 700 lbs. sold $20-40 higher and over 700 lbs. sold steady to $4 higher. Heifer calves under 600 lbs. sold $20-40 higher, and over 600 lbs. sold $5-12 higher. Yearling feeder steers sold $3-7 higher, and yearling heifers sold steady to $5 higher. Benchmark steers averaging 757 lbs. sold from $375-382, averaging $376.90. — Anna Miller Fortozo, WLJ managing editor
