Wednesday markets
“The cattle market’s upside run was shaken by Tuesday’s mind-blowing rally in the corn complex,” wrote ShayLe Stewart, DTN livestock analyst, in her midday comments. “Given that this week sits in front of Labor Day, it makes sense that packers aren’t as aggressive in the cash market since they have dark days planned ahead.”
Live cattle futures crept lower, with the August contract down 30 cents to $141.32 and the October contract down 82 cents to $143.77.
There was some cash trade, with 13,460 head sold. Live steers sold from $145-148, averaging $146.30. Dressed steers sold from $232-234, averaging 232.56. Cash trade was limited on light demand in the western Corn Belt and the southern Plains. Trade in Nebraska was slow on moderate demand. Total trade for the week is about 38,000 head.
“It’s not surprising to see that packers haven’t shown much interest in this week’s cash cattle market as they’re buying for short kill weeks (both this week and next),” Stewart said. “More business is likely to develop but this week’s trade will likely be well below 100,000 head.”
On the formula side, a total of 23,900 head averaging 858 lbs. sold for an average of $230.88.
Slaughter for the week so far is estimated at 375,000 head, compared to last week’s number of 373,000 head.
Boxed beef prices were mixed on 121 loads. The Choice cutout gained 3 cents to close at $262.83, and the Select cutout lost $1.18 to close at $237.62.
“Packer margins have narrowed a bit again with cash established at another new high this week,” wrote Cassie Fish, market analyst, in The Beef. “The cutout is faltering some this week thanks to some noticeable weakness in the loin and chuck. The rib though is still strong and trading near its recent highs.”
Feeder cattle
“The cattle market is far better at this point than what it was a year ago, but still with heightened input costs for everything, cattlemen and traders alike are leery of the marketplace Wednesday as their concerns of higher feed prices lingers,” Stewart said.
Feeder cattle futures saw some gains, with the August contract up 32 cents to close at $161.22 and the September contract up 57 cents to close at $183.02.
The CME Feeder Cattle Index lost 20 cents to close at $180.50.
Corn futures were modestly higher, with the September contract up 5 cents to $6.65 and the December contract up 2 cents to $6.57.
Iowa: Russell Livestock in Russell sold 1,518 head on Monday at a special cattle sale. There was no market trend noted, as the last sale was three weeks prior. Benchmark steers averaging 825 lbs. sold between $179.75-189.85, averaging $187.58. — Anna Miller, WLJ managing editor
