Wednesday markets
Markets were sluggish today and both live and feeder cattle futures were unable to find any gains.
Live cattle contracts were lower, with the August contract down 50 cents to $121.25 and the October contract down 40 cents to $126.77.
Cash trade through the week so far has been slow. A total of 6,323 head sold, with live steers selling between $117-124, averaging $121.74. Dressed steers sold between $197-201 and averaged $198.19. On the formula side, 19,800 head averaging 857 lbs. sold for $197.42.
Central Stockyards’ Fed Cattle Exchange offered 4,322 head Wednesday, of which 364 head sold. All of the successful lots came from Texas, which sold between $117-119.50. Reserve prices for other lots ranged from $118-122.
Today’s slaughter is estimated at 119,000 head, about a thousand head behind last Wednesday. To date this week, slaughter totaled 360,000 head—much higher than last week’s holiday-shortened number of 247,000 head.
“Word on the street is that one major plant will be dark next Friday and Saturday, followed by a second dark plant the next week,” reported Cassie Fish in The Beef.
“Slaughter levels have begun a seasonal decline from the May/June peak season, but some in the industry are frustrated by the news.”
Boxed beef prices were lower on 136 loads, with the Choice cutout down 46 cents to $272.88 and the Select cutout down $2.99 to $253.75.
Feeder cattle
Corn was slightly higher, with the July contract up 6 cents to $6.83 and the September contract up 17 cents to $5.68. The July contract expired today and contracts tomorrow morning will likely be trading below the $6 mark, Stewart said.
“Sadly, even though the live cattle market is rallying into Wednesday’s afternoon, the feeder cattle contracts aren’t able to soak up any of the market’s momentum and move higher alongside the live cattle contracts,” Stewart said.
The August feeder cattle contract lost $1.87 to $156.95 and the September contract lost $2.40 to close at $159.22. The CME Feeder Cattle Index was down 83 cents to $152.99.
“The resistance at $160 is still immensely burdensome and unless corn prices endure a sharp fall or cash cattle prices skyrocket higher (which is unlikely), the feeder cattle contracts are expected to continue to dance among the market’s pressure and hesitancy,” Stewart remarked.
Kansas: Winter Livestock in Dodge City sold 554 head Wednesday. Compared to the last sale, there were not enough steers for a market test, however a steady trend was noted on 850-900-lb. steers. There were also not enough feeder heifers for a market test. Benchmark steers averaging 780 lbs. sold between $147.25-150.75, averaging $150.11. — Anna Miller, WLJ managing editor
