Wednesday markets
The market traded mostly uneventfully today, with cash cattle trading lower than a week ago. Feeders have continued to see good demand at the auction markets.
Live cattle futures were down slightly, with the August contract down 7 cents to $136.80 and the October contract down 5 cents to close at $142.32.
Cash trade through the morning totaled 23,482 head. Live steers sold between $137-147, averaging $139.08. Dressed steers sold between $222-230, averaging $224.82. To date this week, about 36,000 head have sold.
On the formula side, a total of 25,700 head averaging 853 lbs. sold for an average of $225.71.
“The spread between futures and cash prices has made it difficult for packers to negotiate forward contracts,” the Ag Center wrote in the Cattle Report.
“Recessionary fears have kept the premiums out of the deferred contracts and producers are hesitant to forward contract a loss or at a price bearing a significant discount to current cash. The north/south spread has also contributed to reluctance to forward contract for cattle fed in the north because they are not being paid for the premium.”
Slaughter through the day is estimated at 125,000 head, bringing the week’s total to about 374,000 head—on par with the same time a week ago.
Boxed beef prices were mixed, with the Choice cutout up $1 to $269.11 and the Select cutout down $1.12 to close at $243.88.
Feeder cattle
“Sale barns have seen continued support and unwavering interest in both feeders and calves this week, which is helping give traders the confidence they need in order to justify a higher move in the complex,” wrote ShayLe Stewart, DTN livestock analyst, in her midday comments.
Feeder cattle futures were higher, with the August contract up $1.67 to $179.10 and the September contract up $1.42 to $181.85.
The CME Feeder Cattle Index was unchanged at $169.91.
Corn futures were up slightly, with the September contract up 3 cents to $6 and the December contract up 2 cents to $6.03.
Kansas: Winter Livestock in Dodge City sold 1,150 head on Wednesday. Compared to a week earlier, steers and heifers 400-950 lbs. sold unevenly steady on very light receipts. Demand was good. Benchmark steers averaging 784 lbs. sold between $171-176.50. — Anna Miller, WLJ managing editor
