Wednesday markets
The market is looking up as all futures contracts were green today and cash cattle have found some momentum in the marketplace.
Live cattle contracts were higher today, with the June contract up $1.07 to $122.30 and the August contract up $1.02 to $124.92.
“This rally comes at a perplexing time as the boxed beef market is veering lower,” remarked ShayLe Stewart, DTN livestock analyst. “But its momentum is so strong that a number of the contracts have made new contract highs.”
Cash trade was active today, with 21,311 head selling between $121-125. Dressed steers sold between $193-196. On the formula side, 21,500 head averaging 846 lbs. sold for $195.20.
The Fed Cattle Exchange offered 6,049 head Wednesday, of which 1,006 head sold. Heifers averaged $121.65, steers averaged $121.22 and mixed lots averaged $119.25. The bulk of the sold cattle came from the Texas/Oklahoma/New Mexico region; out of the 5,710 head offered, 971 head sold. The remaining 35 head sold came from Kansas’ offering of 339 head. Opening bids ranged from $118-120 and high bids reached $122.50.
Slaughter for the day is projected at 120,000 head, bringing this week’s total to date to 357,000 head.
Boxed beef prices dropped today, with the Select cutout finally under the $300 mark. On 141 loads the Choice cutout lost $5.26 to $329.17 and the Select cutout lost $8.32 to $289.96.
“Currently, there is no fear that a summer low in boxed beef will take cash cattle prices lower,” commented Cassie Fish, market analyst in The Beef. “What dominates today is simply enthusiasm for better days.”
Feeder cattle
Feeders were also in the green today, with the August contract up 87 cents to $157.70 and the September contract up $1.15 to $159.80. The CME Feeder Cattle Index was up 13 cents to $140.35.
Corn contracts were mixed, with the July contract up 5 cents to $6.73 and the September contract down 3 cents to $5.88.
“Cow-calf producers are praying the market’s strength is able to sustain throughout the end of the week and can encourage the large feeder cattle sales to push for higher prices,” Stewart said.
Kansas: Winter Livestock in Dodge City sold 935 head Wednesday. Compared to the last sale, feeder steers 650-1,000 lbs. sold $4-6 higher. Feeder steers 600-800 lbs. sold $4-5 higher and 800-850 lbs. sold $10 higher. Benchmark steers averaging 747 lbs. sold between $147.25-147.50.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 3,299 head Tuesday. Steers and heifers sold $2-6 higher, except 650-700-lb. steers sold $4-6 lower; 750-800-lb. steers sold $8-10 higher; 700-750-lb. heifers sold $9-10 higher. — Anna Miller, WLJ managing editor
