Live cattle futures closed out the week higher, with the December contract up $1.63 to $154.05 and the February contract up 93 cents to $154.85.
“We’re seeing packers operating with extremely thin margins, and the scarcity of fed cattle supplies is boding well for feedlots and continues to allow them to remain in control of the majority of the market’s leverage,” wrote ShayLe Stewart, DTN livestock analyst, in her Thursday midday comments.
Cash trade was slow to develop over the week. Thursday morning saw the brunt of cash trade, with about 42,000 head sold. Total weekly trade through Thursday morning was about 45,000 head. Live steers sold from $155-158, and dressed steers sold from $245-248.
Cash trade for the week ending Dec. 11 was 59,222 head. Live steers averaged $155.68, and dressed steers averaged $246.94.
The national weekly direct beef type price distribution for the week of Dec. 5-12 was the following on a live basis:
• Negotiated purchases: $155.75.
• Formula net purchases: $158.34.
• Forward contract net purchases: $156.14.
• Negotiated grid net purchases: $157.29.
On a dressed basis:
• Negotiated purchases: $246.65.
• Formula net purchases: $252.27.
• Forward contract net purchases: $235.78.
• Negotiated grid net purchases: $248.05.
Through Thursday, slaughter totaled 486,000 head, compared to 508,000 head a week earlier. Total slaughter for a week earlier is estimated at 652,000 head. Actual slaughter for the first week of December was 660,466 head.
Boxed beef prices were higher, with the Choice cutout up about $7 to $254.30 and the Select cutout up about $8 to $228.51.
Feeder cattle
The January feeder cattle contract lost 42 cents to close at $183.05, and the March contract lost 38 cents to close at $184.67.
The CME Feeder Cattle Index gained 27 cents to close at $179.50.
Corn futures closed out the week higher, with the March contract up 11 cents to $6.53 and the May contract up 9 cents to $6.53 also.
“Until after the first of the year, very few feeder cattle sales will take place throughout the countryside, which will likely leave the market trading in a very unenthusiastic manner,” Stewart said.
Colorado: Winter Livestock in La Junta sold 6,430 head Tuesday. Compared to the last auction, steer calves sold steady to $2 lower. Heifer calves sold unevenly. Under 550 lbs. sold $3-5 higher, with instances of $8 higher, and over 550 lbs. sold steady to $2 lower. Yearling feeder steers sold steady to $2 lower, except for 850-900 lbs., which were $3-5 higher. Yearling feeder heifers sold steady to $2 lower. Benchmark steers averaging 713 lbs. sold between $173.50-180, averaging $177.68.
Missouri: Joplin Regional Stockyards in Carthage sold 7,000 head Monday. Compared to the last auction, as of the mid-session, feeder steers were trading steady to $3 higher, with heifers trading steady to $2 higher. Benchmark steers averaging 764 lbs. sold between $178-182.50, averaging $180.03.
Nebraska: Tri-State Livestock Auction in McCook sold 2,370 head Monday. Compared to the previous auction, steers were $7-11 higher, and heifers were steady to $10 higher. Benchmark steers averaging 727 lbs. sold between $185-196 and averaged $189.96.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 11,200 head Monday. Compared to the last auction, as of the mid-session, feeder steers and heifers sold unevenly steady. Steer calves sold unevenly steady, and heifer calves were $3-5 lower. Benchmark steers averaging 732 lbs. sold between $175-188.25 and averaged $181.46.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 3,571 head Monday. Compared to the previous auction, feeder steers sold steady to $5 lower, with instances of $12 lower, except 550-600 lb. feeder steers, which were $4-6 higher. Feeder heifers sold $2-6 lower, except 550-650 lbs., which were steady to $3 higher. Benchmark steers averaging 790 lbs. sold between $180-186, averaging $182.44. — Anna Miller, WLJ managing editor
