Thursday markets
Markets continued to trade lower today.
Live cattle markets were all down: April contracts traded 50 cents lower at $121.60 and the June contract was down 40 cents to $119.65.
“As feedlots look at a sixth consecutive day in a row of weaker trade, they look at the cash cattle market and know if there’s one place the market is going to shoot them some positivity this week it’s going to be in the cash market,” Shayle Stewart, DTN livestock analyst, wrote in her midday comments. “That’s not to say moving the needle in the cash cattle market is going to be easy as packers would obviously like to see prices trade at steady levels. But if feedlots can rally together and demand higher prices amid the higher boxed beef values, there’s a good chance at least $1.00 if not $2.00 higher can be paid.”
Cash trade was active today as compared to yesterday with 39,187 head selling between $120-126, averaging $123.09. On the formula side, 22,700 head averaging 852 lbs. sold for an average of $194.66.
The projected slaughter today was 114,000 head, slightly lower than last week’s 119,000 head.
Boxed beef prices traded higher with the Choice cutout trading up $3.71 to $276.62 and the Select cutout up $1.12 to $268.43 on 103 loads.
Feeder cattle
“As the corn market takes a breather from rallying extensively the last two days, the feeder cattle contracts sit anxiously waiting to see what the cash cattle market does,” Stewart remarked. “If cash cattle can sell higher, then there may be enough supportive momentum in the complex to rally the feeder cattle higher.”
April feeder cattle were down $1.10 to $140.05 and May feeders were down $1 to $144.42. CME reported its latest Feeder Cattle Index down $1.26 to $142.30. Corn futures traded lower with the May contract down 4 cents to $5.90 a bushel and the June contract down 2 cents to $5.76 a bushel.
Wyoming: Torrington Livestock in Torrington sold 3,682 head on Wednesday. Compared to last week: steer calves under 500 lbs. traded steady; 550-700 lbs. traded $3-4 higher; steers over 700 lbs. traded $1-4 lower. Heifer calves under 550 lbs. traded steady to $3 higher;550-700 lbs. traded $3-5 lower; heifer calves over 700 lbs. traded mostly steady.. Benchmark steers averaging 778 lbs. sold between $142-152, averaging $145.77. — Charles Wallace, WLJ editor
