Wednesday markets
Cattle markets were able to rally higher today, although cash trade prices have been somewhat disappointing.
Live cattle futures were able to trade higher, with the August contract up 27 cents to $120.05 and the October contract up 55 cents to $125.25.
A good chunk of cash cattle traded today, with 21,988 head sold. Live steers sold between $118-123, averaging $119.66. Dressed steers sold between $195-197, averaging $195.62. On the formula trade side, a total of 22,000 head averaging 860 lbs. sold for $198.15.
The Fed Cattle Exchange listed 3,367 head for sale Wednesday. Of that, only 426 head actually sold. Texas sold all the successful lots for $119. Reserve prices for other lots ranged from $118-124. The Exchange also has a special sale scheduled for tomorrow, offering 1,965 fed cattle from Kansas and Texas.
Slaughter for the day is projected at 117,000 head, a couple thousand behind the same time last week. Slaughter so far this week totals 349,000 head. Last Wednesday, slaughter was recorded at 360,000 head.
“Slaughter levels are big enough to keep fed cattle supplies manageable but not so big the industry can become fully current,” wrote Cassie Fish, market analyst, in The Beef. “Some feedyards are unable to get fully cleaned up on the front-end, a reality they have learned to live with. It’s quite clear the north is in better shape than the south”.
Boxed beef prices were up slightly today on 161 loads. The Choice cutout was up 36 cents to $265.24 and the Select cutout was up 19 cents to $248.77.
“Thankfully, these higher boxed beef prices do show that consumer demand is still thriving throughout the market and should continue to encourage packers to keep running these moderate kill speeds, which will lessen the chance of supplies backing up in the feedlot sector,” remarked ShayLe Stewart, DTN livestock analyst.
Feeder cattle
Feeders were in the green today, up over a dollar on all nearby contracts. The August contract gained $1.25 to $156.77 and the September contract gained $1.52 to $159.30. The CME Feeder Cattle Index lost 19 cents to close at $150.71. Corn prices have been trading mostly steady through the week. The September contract was unchanged at $5.71 and the December contract was up 2 cents to $5.68.
“Watching how the spring contracts of 2022 perform will continue to be an influencing factor for this year’s calf market as feedlots have seen enough fat cattle trade at $120 this past year and desperately hope that $130 is achievable in 2022,” Stewart said.
Kansas: Winter Livestock in Dodge City sold 546 head Wednesday. There were not enough steers and heifers for a market test, but a steady trend was noted. A small group of benchmark steers averaging 744 lbs. sold for $144.50. — Anna Miller, WLJ managing editor
