Wednesday markets
The cattle market closed lower today, burdened by limited cash trade and lower boxed beef prices.
“The live cattle complex had a tough day as not only did the futures complex close lower, but the pressure of a weaker cash cattle market amid lower boxed beef prices was enough bad news for one day,” wrote ShayLe Stewart, DTN livestock analyst, in her closing comments.
Live cattle futures were lower, with the August contract down 95 cents to $141.55 and the October contract down $1.25 to close at $142.57.
There was some cash trade today. A total of 9,542 head sold, with live steers selling from $143-145 and dressed steers selling from $227-234. Cash trade volume for the week totals only about 20,000 head.
On the formula side, a total of 16,800 head averaging 869 lbs. sold for an average of $231.28.
Slaughter for the day is estimated at 125,000 head, bringing the week’s total to 373,000 head this week. The same time last week, slaughter was 375,000 head.
Boxed beef prices were lower on 156 loads. The Choice cutout was $1.45 lower to $258.34, and the Select cutout lost $1.94 to close at $237.74.
Feeder cattle
“With the corn complex closing $0.06 lower in its nearby contracts, the feeder cattle market was able to see its spot and nearby contract close slightly higher while the rest of the market closed lower as it absorbed the fat cattle market’s weaker trade,” Stewart said.
Feeder cattle futures were up slightly. The September contract gained 27 cents to close at $182.45, and the October contract gained 20 cents to close at $183.47.
The CME Feeder Cattle Index gained 4 cents to close at $183.04.
The September and December corn contracts each lost 6 cents to close at $6.73 and $6.70, respectively.
“It’s likely that Thursday’s market is pressured once again as the doggish (sentiment) that comes with the cash cattle market trading lower won’t be easy to shake,” Stewart said.
Missouri: Kingsville Livestock Auction in Kingsville sold 2,057 head on Thursday. Compared to last week, the majority of steers sold steady to $2 higher, except those weighing 600-700 lbs., which sold $5-7 higher. Benchmark steers averaging 769 lbs. sold between $184.75-191, averaging $187.39. — Anna Miller, WLJ managing editor
