Wednesday markets
The cattle market headed higher throughout the day, even amid another day of higher corn, spurred on by higher cash prices.
Live cattle futures closed higher, with the April contract up $1.72 to close at $143.07 and the June contract up $2.05 to close at $138.62.
There was some cash trade today, with 14,719 head sold. Prices were higher than a week earlier, with live steers selling between $140-147, averaging $144.90. Dressed steers sold between $223-238, averaging $233.78. Through Wednesday, about 92,000 head had sold.
“There’s no doubt that packers were caught being short bought and that’s what drove prices higher,” said ShayLe Stewart, DTN livestock analyst, in her midday comments. “Thankfully, feedlots were keen about their marketing this week and were able to see prices driven higher upon packers’ desperate need for more cattle.”
On the formula side, a total of 18,300 head averaging 874 lbs. sold for an average of $224.48.
Slaughter for the day is estimated at 125,000 head, bringing the week’s total so far to 361,000 head. Last week, slaughter through Wednesday totaled 375,000 head, and last year, it totaled 360,000 head.
Boxed beef prices were lower on 137 loads. The Choice cutout lost $1.11 to close at $268.82, and the Select cutout lost $2.68 to close at $256.53.
Feeder cattle
Feeder cattle futures were also higher today. The April contract gained 85 cents to $157.50, and the May contract gained $1.70 to $162.47.
The CME Feeder Cattle Index gained 17 cents to close at $154.66.
Corn futures also scaled higher. The May contract gained 11 cents to close at $8.15, and the July contract gained 10 cents to $8.10.
“Drought and high feed prices remain a concern for calf/feeder buyers, but seeing a stronger board and interest in the fat cattle market helps raise the market’s morale,” Stewart said.
Colorado: Winter Livestock in La Junta sold 756 head on Tuesday. Compared to a week earlier, feeder steers and heifers under 700 lbs. were lightly tested, and over 700 lbs. sold in a light test but were mostly steady. Benchmark steers averaging 668 lbs. sold from $164-168, averaging $167.29. — Anna Miller, WLJ managing editor
