Wednesday markets
Cattle markets were feeling the pressure today and were unable to trade higher. Cash trade has remained at a standstill.
Live cattle contracts were all down: The April contract was down 30 cents to $122.10 and the June contract was down 87 cents to $120.05.
“Feedlots know that if they want higher prices this week, it’s going to be by patiently waiting and drawing the week’s trade out until Thursday or Friday,” remarked ShayLe Stewart, DTN livestock analyst, in her midday comments.
Cash trade was light today with only 300 head trading—not enough for a market trend on live steers. Dressed steers averaged $194. On the formula side, a total of 15,700 head averaging 863 lbs. averaged $195.
The Fed Cattle Exchange held its weekly online sale, offering 3,643 head, of which none actually sold. Opening prices ranged from $120-128, but no reserve prices were met. High bids reached $126.
Slaughter for the day is projected at 115,000 head, bringing the week’s total slaughter to 343,000 head.
Boxed beef prices were higher, with the Choice cutout up $2.80 to $272.91 and the Select cutout up 77 cents to $267.31 on 108 loads.
Feeder cattle
“As corn prices keep scaling higher the feeder cattle contracts are feeling pretty doom and gloom as input costs are sucking profits away rather quickly from feedlots’ bottom line,” Stewart commented.
April feeders were down $1.30 to $141.15 and May feeders were down $1.90 to $145.42. CME reported its latest Feeder Cattle Index down 10 cents to $143.56. The price of corn is sitting right under $6, with the May contract at $5.94.
“Technically speaking, the feeder cattle contracts have plenty of room for opportunity and upside potential, the market’s ability to trade higher is only going to surface if pressure from higher inputs lessens or if cash cattle begin to trade higher again this week,” Stewart said.
Colorado: Winter Livestock in La Junta sold 1,209 head Tuesday. Compared to the prior sale, feeder steers and heifers under 700 lbs. sold in a light test $3-5 lower; over 700 lbs. sold $2-4 lower. Benchmark steers averaging 734 lbs. sold for $140.
Kansas: Winter Livestock in Dodge City sold 2,263 head Wednesday. Compared to the prior week, feeder steers 400-1,000 lbs. sold $4-8 lower. Feeder heifers 400-925 lbs. sold $4-8 lower. Benchmark steers averaging 720 lbs. sold between $140-142.50.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 3,051 head Monday. Compared to the prior week, feeder steers sold $3-5 higher, except 700-750 lbs. sold steady to $4 lower and 800-850 lbs. sold $2-3 lower. Heifers sold $2-4 higher, except 550-600 lbs. sold $2 lower, and 700-750 lobs. Sold $2-5 lower. Benchmark steers averaging 766 lbs. sold between $149.50-155.50. — Anna Miller, WLJ managing editor
