Wednesday markets
There were strong notes of optimism in the markets today, with futures and cash trade higher, beef cutouts ever-gaining due to strong beef demand and higher slaughter levels from last week.
“The focus on tighter expected feeder cattle supplies, as traders are now able to trade cattle on feed report estimates, has created renewed market momentum,” remarked Rick Kment, DTN contributing analyst, in his closing livestock comments.
Live cattle futures saw some gains. The August contract gained 72 cents to $124.02, and the October contract gained 92 cents to $129.05.
A substantial amount of cash trade took place today, with 36,439 head sold. Live steers traded as high as $128, averaging $126.16. Dressed steers sold between $197-205, averaging $200.34. On the formula side, a total of 17,500 head averaging 867 lbs. sold for $199.32.
The Fed Cattle Exchange hosted their weekly online sale, offering 3,011 head. A total of 1,328 head actually sold, 76 were scratched from the auction and 1,607 head were listed as unsold as they did not meet the reserve prices that ranged from $120-125. High bids ranged from $120-122.
Slaughter for the day is estimated at 120,000 head, several thousand head above the same time last week. The week’s total is currently at 360,000 head, about 15,000 head ahead of last week.
“Traders are still unwilling to aggressively focus on current gains in boxed beef values, but the expectation that strong underlying support may continue to build is helping to drive buyer support in all contracts,” Kment commented.
Feeder cattle
Feeders were able to gain several dollars today. The August contract increased $2.27 to $158.85, and the September contract increased $2.42 to $163.35. The CME Feeder Cattle Index was up 33 cents to $155.24.
Corn futures found some small gains today. The September contract increased 3 cents to $5.61, and the December contract gained a penny to $5.65.
“Early placements seen during the summer will add to the concern of adequate supplies through late summer; this is also adding questions of just how aggressively prices may move higher during fall and winter months,” Kment said.
Boxed beef prices are still making gains. On 112 loads, the Choice cutout increased $2.02 to $340.08, and the Select cutout increased $3.03 to $309.80.
Kansas: Winter Livestock in Dodge City sold 1,370 head Wednesday. Compared to the previous sale, feeder steers 800-950 lbs. sold $2-5 higher; steers 650-800 lbs. sold $2 lower; and steer calves 450-650 lbs. sold $4-10 higher. Feeder heifers 800-900 lbs. sold $2 lower, and heifers 450-800 lbs. sold $5-10 higher. Benchmark steers averaging 791 lbs. sold between $150-153, averaging $152.57. — Anna Miller, WLJ managing editor
