Cattle Current Daily—Dec. 13, 2021

Cattle Current Daily—Dec. 13, 2021

Negotiated cash fed cattle trade ranged from limited on light demand to a standstill through Friday afternoon, according to the Agricultural Marketing Service.

Live prices last week were $2 lower in the Southern Plains at $140/cwt. and steady to $2 lower at $138-$140 in Nebraska and the western Corn Belt. Dressed prices were steady at $220.

Cattle futures drifted a touch higher Friday.

Feeder Cattle futures closed and average of 62¢ higher (22¢ to $1.05 higher).

Live Cattle futures closed an average of 28¢ higher.

Choice boxed beef cutout value was 1¢ lower Friday afternoon at $264.54/cwt. Select was 56¢ higher at $252.24

Cattle futures drifted a touch higher Friday.

Feeder Cattle futures closed and average of 62¢ higher (22¢ to $1.05 higher).

Live Cattle futures closed an average of 28¢ higher.

Corn futures closed fractionally lower to 1¢ lower.

Soybean futures closed 1¢ to 3¢ higher through Nov ‘22 and then fractionally higher. 

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Major U.S. financial indices closed higher Friday despite the steamy inflation illustrated in the latest Consumer Price Index. Through November, the all-items index was up 6.8% over the last 12 month — the most since 1982 — according to the U.S. Bureau of Labor Statistics.

The Dow Jones Industrial Average closed 216 points higher. The S&P 500 closed 44 points higher. The NASDAQ was up 113 points.

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The steady to softer prices this week are likely due to the lower boxed beef prices and a shift in the cuts being purchased.

“Fed cattle prices are not likely to push higher prior to the end of the year as there will be two consecutive weeks of reduced slaughter and beef production, says Andrew P. Griffith, agricultural economist at the University of Tennessee, in his weekly market comments. “However, the market is expected to find support in January with more support arriving with the spring and summer grilling season. April Live Cattle futures is pricing finished cattle near $142, but there may be more upside potential than what the futures market is expecting if domestic and international demand remain strong.”

Griffith explains last week’s softer cash prices likely stem from from lower wholesale beef prices, losing some ground to shifting buyer demand.

“As the Choice Select spread has narrowed considerably the past several weeks, it would appear beef buyers are attempting to secure some of their winter beef needs to stock shelves for January and February,” Griffith says. “There may still be one more run on high-quality beef for the holiday season, but the bulk of most product moved will be for post-holiday consumption. As the shift occurs, the Choice-Select spread will continue narrowing. At this time, the narrowing will primarily occur in the form of Choice prices declining more quickly than Select prices declining.”

2021-12-12T23:43:19-06:00

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