Wednesday markets
The market was boosted higher today, although cash trade numbers remain light. Feeders continue to sell with good demand in the country.
“The live cattle market is having a stellar day in its nearby contracts as the market works to ‘make hay while the sun is shining,’ or maybe in this case, it’s while traders are showing interest in the market, as support has been hit and miss,” wrote ShayLe Stewart, DTN livestock analyst, in her midday comments.
Live cattle futures were higher, with the August contract up $1.32 to $137.90 and the October contract up $1.82 to $143.95.
Cash trade has remained light. About 16,000 head sold this morning, with live steers selling from $135-144, averaging $141. Dressed steers sold from $225-232, averaging $230.35. Cash trade through the week so far totals only about 36,000 head.
On the formula side, a total of 18,400 head averaging 853 lbs. sold for an average of $226.55.
Slaughter for the day is estimated at 124,000 head, bringing the week’s total to 372,000 head—a couple thousand head shy of a week earlier.
Boxed beef prices were lower on 106 loads, with the Choice cutout down 52 cents to $267.94 and the Select cutout down 25 cents to $241.30.
“It’s difficult to find something new to say about this market with short and long term fundamentals in positive shape and admittedly much stronger than many predicted,” wrote Cassie Fish, market analyst, in The Beef. “The important thing to remember is the market will begin to anticipate the tightening in fed cattle supplies for Q4 and beyond.”
Feeder cattle
Feeder cattle futures were also able to find some gains today. The August contract was up $1.22 to $179.35, and the September contract was up $1.45 to $182.90.
The CME Feeder Cattle Index lost 36 cents to close at $174.04.
Corn traded mostly sideways, with the September contract up less than a penny to $5.91 and the December contract up 2 cents to $5.96.
“The support for feeder cattle and even weaned calves has been tremendous and so long as the market can keep this momentum through closing, pushing higher into Thursday should be no issue so long as outside pressures don’t (derail) the market’s focus,” Stewart said.
Missouri: Ozarks Regional Stockyards in West Plains sold 2,870 head on Tuesday. Compared to a week earlier, steer and heifer calves traded steady to $5 higher, with spots of $10 higher. Feeder steers and heifers traded steady to $5 higher in a light test. Benchmark steers averaging 780 lbs. sold between $166.50-173.10, averaging $170.85. — Anna Miller, WLJ managing editor
