Cattle Current Daily—Dec. 31 to Jan. 2, 2024

Cattle Current Daily—Dec. 31 to Jan. 2, 2024

Negotiated cash fed cattle trade was mostly inactive on very light demand in all major cattle feeding regions through Monday afternoon, according to the Agricultural Marketing Service.

FOB live prices last week were $1-$2 higher at $192-$193/cwt. in the Southern Plains, $196-$197 in Nebraska and $195-$197 in the western Corn Belt. Dressed delivered prices were $2 higher at $307.

Choice boxed beef cutout value was $2.99 higher Monday afternoon at $325.37/cwt., supported by slower packer production. Select was $3.63 higher at $294.76.

Cattle futures mostly edged higher Monday.

Toward the close, Feeder Cattle futures were an average of 37¢ higher, except for an average of 28¢ lower in the back two contracts. Live Cattle futures were an average of 25¢ higher, except for an average of 28¢ lower in two contracts. 

Grain and Soybean futures were mixed on Monday.

Toward the close and through Sep ’25 contracts, Soybean futures were 2¢ to 4¢ higher. Corn futures were 1¢ lower. Kansas City Wheat futures were 1¢ higher.

******************************

Major U.S. financial indices closed lower again Monday, pressured in part by likely year-end profit taking.

The Dow Jones Industrial Average closed 418 points lower. The S&P 500 closed 63 points lower. The NASDAQ was down 235 points.

Toward the close, West Texas Intermediate Crude Oil futures on the CME were 47¢ to 51¢ higher through the front six contracts

******************************

Even though cattle and beef prices achieved record-high levels in 2024, cattle markets represented a similar chapter in the story that began in 2022, says Derrell Peel, Extension livestock marketing specialist at Oklahoma State University.

Despite a sixth consecutive year of declining U.S. calf crops, Peel points out feedlots held average monthly inventories fractionally higher compared to the year before by continued feeding of more heifers and by feeding cattle for longer.

Peel notes heifers still represented 39.7% of feedlot inventories as of Oct. 1, near the upper end of historical levels and well above levels that would indicate heifer retention.

“Although final data for the year are still coming, it appears that total beef production in 2024 was down just 0.6% year over year. This is significantly less than earlier expectations of a 4+% year-over-year decrease,” Peel explains in his weekly market comments. “In fact, fed beef production was up 2.2% due to larger than expected steer and heifer slaughter and a sharp increase in carcass weights in 2024.”

Average steer carcass weights increased 22 pounds year over year and average heifer carcass weights averaged 18 pounds more, according to Peel. Even so, he says Choice boxed beef prices averaged 2.8% more year over.

On the other hand, Peel explains non-fed beef production was 13.2% less year over, driven by sharp reductions in cow slaughter. 

“Beef cow slaughter was down 19.0% year over year and dairy cow slaughter was down 12.2% from the previous year,” Peel says. “Reduced supplies of processing beef led to record wholesale trimmings prices, increased demand for imported beef, strong lean demand for end meats, and record cull cow prices.”

Bottom line, Peel says USDA’s Jan. 1 Cattle report (scheduled for release Jan. 31) will likely confirm that cattle inventories continued to decline in 2024. 

“Much of 2024 was occupied with producers looking for indications of heifer retention that would lead to eventual herd rebuilding. With no indications of heifer retention at the end of 2024, the new year starts with the same question,” Peel says. 

 

2024-12-30T18:05:27-06:00

This Is A Custom Widget

This Sliding Bar can be switched on or off in theme options, and can take any widget you throw at it or even fill it with your custom HTML Code. Its perfect for grabbing the attention of your viewers. Choose between 1, 2, 3 or 4 columns, set the background color, widget divider color, activate transparency, a top border or fully disable it on desktop and mobile.

This Is A Custom Widget

This Sliding Bar can be switched on or off in theme options, and can take any widget you throw at it or even fill it with your custom HTML Code. Its perfect for grabbing the attention of your viewers. Choose between 1, 2, 3 or 4 columns, set the background color, widget divider color, activate transparency, a top border or fully disable it on desktop and mobile.

This Is A Custom Widget

This Sliding Bar can be switched on or off in theme options, and can take any widget you throw at it or even fill it with your custom HTML Code. Its perfect for grabbing the attention of your viewers. Choose between 1, 2, 3 or 4 columns, set the background color, widget divider color, activate transparency, a top border or fully disable it on desktop and mobile.

This Is A Custom Widget

This Sliding Bar can be switched on or off in theme options, and can take any widget you throw at it or even fill it with your custom HTML Code. Its perfect for grabbing the attention of your viewers. Choose between 1, 2, 3 or 4 columns, set the background color, widget divider color, activate transparency, a top border or fully disable it on desktop and mobile.