Wednesday markets
It was another favorable day for futures, and cash trade finally developed. Video auctions are running red hot, and calves and feeders are selling with excellent demand.
Live cattle futures traded mostly sideways, with the August contract up 20 cents to $126.87 and the October contract unchanged at $141.27.
“As the spot August contract comes close to reaching its three-month average high, the market’s bullish tones continue to drive in the point that supplies of cattle moving into the second half of 2022 and into 2023 are going to be thin,” wrote ShayLe Stewart, DTN livestock analyst, in her midday comments.
There was a substantial amount of cash trade today, with 32,077 head sold. Live steers sold between $136-147, averaging $140.65. Dressed steers sold from $224-232, averaging $229.37. Cash trade through the week so far totals about 38,000 head.
On the formula side, a total of 22,100 head averaging 850 lbs. sold for an average of $229.16.
Slaughter for the day is estimated at 126,000 head, bringing the week’s total to about 377,000 head.
Boxed beef prices were lower on 119 loads. The Choice cutout lost 46 cents to close at $268.05, and the Select cutout lost 91 cents to close at $241.26.
Feeder cattle
“This week has been an absolute whirlwind for the feeder cattle market as buyers rush to sales and buy as if they have gold sitting in duffel bags out in their beat-up one-ton in the parking lot,” Stewart said. “All while the grain market has been under almost constant pressure, which has helped brighten buyers’ cost of gains as feed prices are dropping.”
Feeder cattle futures rallied higher another day. The August contract gained $1.22 to close at $180.80, and the September contract gained $1.55 to close at $183.07.
The CME Feeder Cattle Index gained 96 cents to close at $172.30.
Corn futures pulled themselves a bit higher today. The July contract gained 7 cents to close at $7.40, and the September contract gained 6 cents to close at $6.
“The relentless nature of this week’s feeder cattle market has everyone wishing they had bought four more pot loads of pairs this spring,” Stewart said. “The feeder cattle market is showing no sign of slowing down as Western Video Market and Superior continue to sell calves and feeders at dynamite prices.”
Kansas: Winter Livestock in Dodge City sold 942 head on Wednesday. Compared to a week earlier, feeder steers 450-950 lbs. sold $3-10 higher on light receipts. Feeder heifers 450-900 lbs. sold $3-10 higher on light receipts. Benchmark steers averaging 787 lbs. sold between $155-156 and averaged $155.27. — Anna Miller, WLJ managing editor
