Cattle Current Daily—Jan. 1-2, 2024

Cattle Current Daily—Jan. 1-2, 2024

Negotiated cash fed cattle trade was slow on light demand in all regions through Friday afternoon, according to the Agricultural Marketing Service.

For the week, FOB live prices were $1 higher in the Texas Panhandle at $172/cwt., $1-$2 higher in Kansas at $172, $1 higher in Nebraska at $172-$173 and mostly $2 higher in the western Corn Belt at $172-$172.50. Dressed delivered prices were $3 higher at $273.

Choice boxed beef cutout value was $1.57 lower Friday afternoon at 289.71/cwt. Select was $1.09 higher at $260.33/cwt. Week to week on Friday, Choice boxed beef cutout value was $3.22 lower and Select was 82¢ lower .

Year-to-date estimated total cattle slaughter of 32.2 million head was 1.4 million head fewer (-4.2%) than the same time last year. Estimated year-to-date beef production of 26.6 billion lbs. was 1.3 billion pounds less (-4.6%).

Cattle and grain futures closed mainly narrowly mixed as traders closed the books on 2023.

Feeder Cattle futures closed mixed, from an average of 7¢ lower in the front three contracts to an average of 78¢ higher (12¢ to $1.82 higher). Week to week, they closed mixed, from an average of 80¢ lower in the front three contracts to an average of $2.15 higher.

Live Cattle futures closed narrowly mixed, from an average of 15¢ lower to an average of 37¢ higher, except for expiring Dec closing $2.47 higher. Week to week on Friday, after $3.62 higher in expiring Dec, Live Cattle futures closed an average of 80¢ higher (2¢ to $1.50 higher), except for an average of 5¢ lower in two contracts. 

On Friday, Corn futures closed 1¢ to 3¢ lower through Jly ’25 and then unchanged to fractionally lower.

KC HRW Wheat futures closed fractionally lower to 1¢ lower through Dec ’24 and then fractionally higher.

Soybean futures closed mostly 11¢ to 14¢ lower.

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I had just one weekly Friday auction to report…for Dunlap Livestock Auction in Iowa, where Compared to two weeks earlier, steers weighing 550-650 lbs. sold mostly steady and Steers weighing 700-800 lbs. sold $5-$8 higher. Heifers weighing 500-600 lbs. traded mostly steady to $3 higher and then mostly $4-$7 higher at 700 lbs. There were 1,443 head on offer.

Remember, you can get a weekly market summary and highlights in the CalfNews Price Point podcast that comes out each Tuesday. You’ll find it at CalfNews.net

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Major U.S. financial indices edged lower Friday on likely year-end position squaring.

The Dow Jones Industrial Average closed 20 points lower. The S&P 500 closed 13 points lower. The NASDAQ was down 83 points.

West Texas Intermediate Crude Oil futures (CME) closed 12¢ to 18¢ lower through the front six contracts.

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Steer by product value in 2023 was the highest last January at $14.28/cwt. It never reached that level again, dropping below $12 in December.

“In July, the steer, hide and offal value began to trend higher, reaching about $13.70/cwt. by late September, but the value has moderated lower over the last two months,” explain analysts with the Livestock Marketing Information Center (LMIC), in the most recent Livestock Monitor. LMIC analysts say recently lower values are due to declines for livers, tripe, tongues and tallow.

The third week of September, when steer by product value was near $13.70, Andrew P. Griffith, agricultural economist at the University of Tennessee reminded in his weekly market comments that the price was significantly higher than the $8-$9 range from 2018-2020.

“Thus, prices today contribute an additional $50 of value per head compared to 2018 through 2020, which directly translates to higher prices for finished cattle,” Griffith explained. “The driver of the byproduct value tends to be the export market as many of these products have a higher value in the international market than the domestic market. As interest rates and inflation continue to negatively influence consumers across the world, there could be some softening in byproduct values.”

2023-12-30T18:30:29-05:00

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