Wednesday markets
Wednesday was a day of disappointment in the cattle markets.
Live cattle futures were down over $1. The August contract lost $1.80 to $120.60 and the October contract lost $1.45 to $126.70.
A handful of cash trade took place today, with 25,528 head selling between $119-125. Dressed steers sold between $191-203. On the formula side, a total of 32,900 head averaging 859 lbs. sold for $205.57.
“In a tug-of-war battle, packers pulled harder this week and are going to be able to hold the cash cattle market at steady,” remarked ShayLe Stewart, DTN livestock analyst.
“With what they’ve been able to buy in the cash cattle market in the 15- to 30-day delivery period, they’ve built up cushion in the market and this is allowing them to avoid fully supporting the cash cattle market at any given week.”
Central Stockyards’ Fed Cattle Exchange offered 5,191 head at its weekly Wednesday auction. Of that, a total of 786 head sold (600 heifers, 86 steers, 100 mixed). Texas/Oklahoma/New Mexico sold the brunt of the offering, with 700 head of heifers and 100 mixed lots averaging $120. Kansas sold the remaining 86 head, with steers averaging $119. Opening bids for other lots ranged from $117-120.
Slaughter for the day is projected to reach 120,000 head, on trend with the same time last week. As of Wednesday, a total of 247,000 head has been slaughtered, vastly behind normal levels due to the holiday-shortened week.
Boxed beef prices were moderately lower on 158 loads, with the Choice cutout down $1.78 and the Select cutout down $1.23 to $262.08.
Feeder cattle
“A combination of technical resistance and the inability for the cash cattle market to move higher were the biggest hinderances on the feeder cattle market’s ability to scale higher,” Stewart said.
Feeders took a hit today, down $1.62 on the August contract to $159 and the September contract down $1.20 to $161.52. CME’s Feeder Cattle Index lost $1.09 to $145.72. Corn prices were slightly down, with the July contract down 3 cents to $6.52 and the September contract down 9 cents to $5.42.
Kansas: Winter Livestock in Dodge City sold 1,163 head Wednesday. Compared to two weeks earlier, feeder steers 525-900 lbs. sold $2-3 higher. Heifers 525-850 lbs. sold $2-3 higher. There was no recent comparison on steer and heifer calves, although a higher trend was noted. A group of fancy steers averaging 770 lbs. averaged $155. — Anna Miller, WLJ managing editor
