Wednesday markets
“CME cattle futures are back on the defensive, giving the vibe that a move to some sort of summer low over the next few weeks is on deck,” Cassie Fish, market analyst, wrote in The Beef.
Live cattle futures were lower, with the June contract down $1.70 to $136.12 and the August contract down $1.32 to $134.92.
“On the cash side, cash prices made a new high for the year last week as packers purchased 107K head and now this week, cash prices have already traded lower in the south at $138,” Fish said.
There was a smaller amount of cash trade today, with 11,163 head sold. Live steers sold between $137-145, averaging $138.46. Dressed steers sold between $228-240, averaging $238.78.
On the formula side, a total of 14,500 head averaging 864 lbs. sold for an average of $223.11.
Slaughter for the day is estimated at 126,000 head, bringing the week’s total to 376,000 head. The same time last week, slaughter totaled 368,000 head.
Boxed beef prices were lower on 157 loads. The Choice cutout lost 99 cents to close at $266.57, and the Select cutout lost 71 cents to close $245.99.
“Boxed beef prices are softer too, but the decline there is gradual and seasonal. Bottom line, after packer margins tightening for 2 weeks, those margins will likely begin to modestly expand again,” Fish said. “Food service demand is very brisk and for now, offsetting any slow downs at retail.”
Feeder cattle
“Unfortunately, the feeder cattle contracts are trending lower as the market neglects to find the technical support it had Tuesday, and with the live cattle market trending lower too, a doggish tone has overcome Wednesday’s futures market in the cattle complex,” wrote ShayLe Stewart, DTN livestock market analyst, in hermidday comments.
Feeder cattle futures were also lower today, with the August contract down $2.15 to $173.15 and the September contract down $1.97 to $175.30.
The CME Feeder Cattle Index gained 18 cents to close at $165.21.
Corn futures were mixed, with the July contract up 7 cents to $7.68 and the September contract down 7 cents to $7.02.
Kansas: Winter Livestock in Dodge City sold 991 head on Wednesday. Compared to a week earlier, feeder steers 800-925 lbs. sold $3-5 lower on light receipts. Feeder heifers 800-900 lbs. sold $1-3 higher on light receipts. There were not enough calves and yearlings for a market test. Benchmark steers averaging 789 lbs. sold between $152-159.50, averaging $159.22. — Anna Miller, WLJ managing editor
