Cattle Current Daily—Dec. 23, 2020

Cattle Current Daily—Dec. 23, 2020

Negotiated cash fed cattle trade was at a standstill in the Southern Plains through Tuesday afternoon, according to the Agricultural Marketing Service. Elsewhere, it was limited to mostly inactive on very light demand. Although too few transactions to trend, there were a few live sales in the western Corn Belt at $103.00 to $106.25/cwt. Last week, live sales were at $108/cwt. in the Southern Plains and at mostly $105 in Nebraska and the western Corn Belt. Dressed trade was at mostly $165.

Cattle futures closed lower Tuesday, likely pressured in part by some pre-holiday position squaring, technical correction and the lack of cash direction.

Live Cattle futures closed an average of 70¢ lower from 27¢ lower in spot Dec to $1.20 lower.

Feeder Cattle futures closed an average of 81¢ lower except for unchanged in the back two contracts.

Choice boxed beef cutout value was 25¢ lower at $210.67/cwt. Select was $2.33 higher at $199.59.

Corn futures closed 1¢ to 3¢ higher through Sep ‘21 and then mostly fractionally lower to 1¢ lower.

Soybean futures closed 2¢ to 4¢ higher through Aug ’21, and then mostly 1¢ to 3¢ lower.

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Major U.S. financial indices closed mixed again Tuesday. Despite Congress passing a federal spending bill for next year, including another round of pandemic economic stimulus, investors seemed to focus more on escalating COVID-19 cases.

The Dow Jones Industrial Average closed 200 points lower. The S&P 500 closed 7 points lower. The NASDAQ closed 65 points higher.

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Overall, total red meat and poultry supplies in freezers as of Nov. 30 were lower year over year, according to USDA’s monthly Cold Storage report.

Total red meat supplies in freezers were down 2% from the previous month and down 12% percent from last year.

Total pounds of beef in freezers were 2% more than the previous month and 7% more year over year.

Frozen pork supplies were down 7% from the previous month and down 28% from last year. Stocks of pork bellies were up 21% from the prior month but down 58% from a year earlier. Bone-in hams for the month were the least since the data series began in 1995.

Total frozen poultry supplies were down 16% from the previous month and down 10% from a year earlier.

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“Placements below a year ago in October and November helped greatly reduce inventories on feed. October placements were down by more than 10%, and November settled in at 9% below 2019,” say analysts with the Livestock Marketing Information Center (LMIC), reflecting on last week’s monthly Cattle on Feed report.

At the same time, LMIC analysts explain the number of cattle on feed more than 120 days increased back above year-ago levels, driven by higher placement numbers in the third quarter and lower marketings in November.

“From a placement perspective, December auction volumes of feeder cattle receipts appear to have increased from December of last year, but border crossings of feeder cattle from Mexico continue to be below a year ago,” LMIC analysts explain, in the latest Livestock Monitor. “The five-year average indicates December placements drop about 15% from November levels. Given November’s already low placements, expect December 2020 placements to have a restrained seasonal move compared to the five-year average.”

2020-12-22T18:32:48-06:00

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