Wednesday markets
The cattle complex closed higher, making up some of yesterday’s losses. Traders are waiting for cash cattle trade to develop, as packers seem to be holding out.
Live cattle rebounded from yesterday’s losses, with the August contract up $1.57 to $134.50 and the October contract up $1.47 to $139.95.
“The live cattle market is buying itself time, trading notably higher in its nearby contracts, but realistically holding its breath as everyone waits to see how this week’s cash cattle market will pan out,” ShayLe Stewart, DTN livestock analyst, said in the midday comments.
Cash trade was light, with 875 head averaging $149.33. Dressed steers sold for $235. On the formula side, 37,100 head averaging 864 lbs. sold for $228.46.
The national weekly direct beef type price distribution for the week of June 27 to July 4 was the following on a live basis:
• Negotiated purchases: $145.80.
• Formula net purchases: $145.10.
• Forward contract net purchases: $144.13.
• Negotiated grid net purchases: $142.92.
On a dressed basis:
• Negotiated purchases: $234.10.
• Formula net purchases: $229.60.
• Forward contract net purchases: $220.64.
• Negotiated grid net purchases: $228.01.
Slaughter for today is projected to be 126,000 head, the same as last week.
USDA’s Agricultural Marketing Service released the National Weekly Fed Cattle Comprehensive report, showing quality grading at 81.1 percent and dressed weights higher to 857 lbs.
Boxed beef prices closed higher on 121 loads, with the Choice cutout up $3.39 to $268.05 and the Select cutout up $3.06 to $242.93.
Feeder cattle
Feeder cattle closed modestly higher, with the August contract up 60 cents to $173.30 and the September contract up 97 cents to $177.07. The CME Feeder Cattle Index was down 26 cents to $165.08.
Corn recovered some of yesterday’s losses, with the July contract up 8 cents to $7.44 and the September contract up 7 cents to $5.99.
Missouri: Ozarks Regional Stockyards in West Plains sold 3,565 head Tuesday. Compared to the previous auction, steer and heifer calves traded steady to $3 higher, while well-tested yearling steers traded $3-6 higher. Benchmark steers averaging 777 lbs. sold between $162-169.50, averaging $165.01. — Charles Wallace, WLJ editor
