Wednesday markets
The cattle market was optimistic today, with futures in the green and cash trade steady to higher.
Live cattle futures were higher, with the February contract up 92 cents to $142.90 and the April contract up $1.65 to $147.82.
There was some cash trade today, with 15,271 head sold. Live steers sold between $138-141, and dressed steers sold between $222-225. On the formula side, a total of 17,200 head averaging 876 lbs. sold for an average of $223.19.
“The market is completely ignoring the fact there is a record number of cattle on feed and summer supplies will rival only 2019 and focusing on what upside potential exists over the next six weeks or so,” remarked Cassie Fish, market analyst, in The Beef. “The old saying, ‘There will never be another bad day’ describes today’s action perfectly.”
Slaughter for the day is projected at 122,000 head, a thousand head more than a week earlier. To date this week, slaughter is estimated at 365,000 head, 3,000 head higher than the same time last week.
Boxed beef prices were lower another day, with the Choice cutout down $1.67 to $275.79 and the Select cutout down $1.79 to $272.05.
“Boxed beef prices are seasonally declining—no surprise there—and packer margins contracting, though from a record level for any February in history,” Fish said.
Feeder cattle
“Wednesday’s WASDE (World Agricultural Supply and Demand Estimates) report was encouraging to the feeder cattle sector as the third and fourth quarter price projections grew by $1 (third quarter) and $2 (fourth quarter),” wrote ShayLe Stewart, DTN livestock analyst, in her midday comments.
“Thankfully beef production also grew stronger on the WASDE report, which should mean packers are going to continue to keep chain speeds running full bore.”
Feeder cattle futures were higher, with the March contract up $1.40 to $168.27 and the April contract up 80 cents to $172.57. The CME Feeder Cattle Index gained 61 cents to close at $162.04.
Corn futures shot higher, with the March contract up 14 cents to $6.46 and the May contract up 12 cents, also to $6.46.
Colorado: Winter Livestock in La Junta sold 1,666 head on Tuesday. Compared to a week earlier, steers under 700 lbs. sold steady to $3 higher, with an advance on 550-600 lbs; over 700 lbs. sold steady to $1 higher. Heifers under 600 lbs. sold steady to $6 higher, and 700 lbs. sold steady to $8 higher, with an advance on 600-650 lbs. Benchmark steers averaging 720 lbs. sold between $160-165.25, averaging $164.05. — Anna Miller, WLJ managing editor
