Wednesday markets
The market traded favorably today. Although cash trade remains light over the week, trade was likely to develop later into the afternoon.
Live cattle futures were higher today. The August contract increased 45 cents to close at $141.75, and the October contract gained 17 cents to close at $145.85.
About 6,000 head traded on the cash market, with live steers selling from $141-148 (averaging $143.84), and dressed steers selling for $230. Only about 12,000 head have traded so far this week. Trading was limited on light demand in the Southern Plains, Nebraska and western Corn Belt.
On the formula side, a total of 19,200 head averaging 869 lbs. sold for an average of $229.
“Carcass data continues to prove that showlists are extremely current and it’s not unlikely that feedlots get their asking price or more this week,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments.
Slaughter for the day is estimated at 126,000 head, bringing the week’s total so far to 373,000 head. The same time last week, slaughter was estimated at 371,000 head. A year ago, slaughter was at 360,000 head.
“As we move toward fall, fewer cows will be included in the slaughter mix, requiring more fed cattle to furnish beef demand,” wrote the Ag Center in the Cattle Report. “Pulling more fed cattle from the available slaughter pool may hold carcass weights from seasonal increases historically noted into fall months.”
Boxed beef prices were lower on 145 loads. The Choice cutout lost $1.10 to close at $264.34, and the Select cutout lost $1.23 to close at $237.89.
Feeder cattle
“This year will show an interruption of more normalized movements of cattle to feedlots,” the Cattle Report read. “With the dwindling supplies of replacement cattle, this fall’s placements will drastically and dramatically show the full impact of herd liquidation.”
Feeder cattle futures also saw some gains today. The August contract gained $1.72 to close at $183.25, and the September contract gained $1.65 to close at $187.12.
The CME Feeder Cattle Index gained 54 cents to close at $179.89.
Corn futures were modestly higher, with the September contract up 4 cents to $6.15, and the December contract up a penny to $6.12.
“If the corn complex poses much more of a threat, then the feeders will have to weigh the imposing threat of higher corn against what the live cattle market is accomplishing, but if cash cattle price advance $2.00 or more again this week, then feeders are going to be ecstatic,” Stewart said.
Kansas: Winter Livestock in Dodge City sold 1,332 head on Wednesday. Compared to a week earlier, feeder steers and heifers 650-950 lbs. sold $2-6 higher. Steer and heifer calves 400-650 lbs. sold $3-10 higher. Benchmark steers averaging 773 lbs. sold between $175-180, averaging $177.67. — Anna Miller, WLJ managing editor
