Wednesday markets
The cattle market was cautious today, unsure how to trade with the rising Russia/Ukraine conflict and higher commodity prices.
Live cattle futures were lower, with the February contract down 70 cents to $143.05 and the April contract down $1.27 to $144.75.
There was some cash trade today. A total of 3,645 head sold, with live steers selling between $142-144 and dressed steers selling for $227. Cash trade through the week so far has been limited at about 9,000 head. On the formula side, a total of 18,400 head averaging 870 lbs. sold for an average of $230.80.
“It’s anyone’s guess at this point how cash cattle are going to trade,” said ShayLe Stewart, DTN livestock analyst. “Feedlots stand a strong chance at getting cattle sold higher than last week as throughput continues at a good pace and packers need cattle. But given the developments between Ukraine and Russia, the entire marketplace is trading in a cautious and uneasy manner.”
Slaughter for the day is estimated at 123,000 head, bringing the week’s total so far to 354,000 head. The same time last week, total slaughter was about 12,000 head more. However, this week has been limited in slaughter capacity due to Monday’s holiday.
Boxed beef prices were lower. The Choice cutout lost 76 cents to close at $260.88, and the Select cutout lost $2.68 to close at $258.96. The Choice/Select spread remains narrow, at only $1.92.
“Packer margins, which still netted over $400 per head last week, will likely bottom soon also. The Choice/Select spread has likely bottomed too,” wrote Cassie Fish, market analyst, in The Beef.
Feeder cattle
“With the soybean market rallying on top of what Tuesday’s market accomplished, and with the corn market trending mostly steady, the feeder cattle contracts are still holding their breath, uneasy about the market’s situation,” Stewart said.
Feeder cattle futures were also lower. The March contract lost $1.45 to close at $162.77, and the April contract lost 85 cents to close at $168.27. The CME Feeder Cattle Index gained 13 cents to close at $162.26.
Corn futures were higher, with the March contract up 9 cents to close at $6.83 and the May contract up 8 cents to close at $6.81.
Kansas: Winter Livestock in Dodge City sold 2,394 head on Wednesday. Compared to a week earlier, feeder steers 650-975 lbs. sold $3-5 lower. Steer calves 350-650 lbs. sold $6-10 higher. Feeder heifers 625-900 lbs. sold $3-4 lower. Heifer calves 400-625 lbs. sold $5-7 higher. — Anna Miller, WLJ managing editor
