Wednesday markets
Futures headed higher today, giving cash trade the boost it needed to sell a dollar or two higher.
“This week has fought hard to push the market higher and the feedlot’s wishes of a strong futures complex and supported cash cattle market are coming true,” wrote ShayLe Stewart, DTN livestock analyst.
“Given the strength of the futures, it’s likely feedlots see the support they seek as the market’s tone has grown considerably stronger.”
Live cattle futures had a good day, with the June contract up $3.10 to $136.82 and the August contract up $3.40 to $137.52.
Cash trade was active today, with 28,302 head sold. Live steers sold between $136-143, averaging $139.53. Dressed steers sold between $224-230.
Formula trade totaled 21,600 head, with cattle averaging 852 lbs. and $221.38.
Slaughter for the day is estimated at 126,000 head, bringing the week’s projected total to about 377,000 head. The same time last week, slaughter totaled about 254,000 head.
Boxed beef prices were mixed on 121 loads, with the Choice cutout up 32 cents to $271.74 and the Select cutout down 15 cents to $249.41.
Feeder cattle
Feeder cattle futures also saw some gains today, with the August contract up $3.20 to $175.65 and the September contract up $2.50 to $177.25.
“The one component of the market that feeder buyers have been longing for has been higher prices in the live cattle market,” Stewart said. “Feeder buyers know supplies are soon to dwindle and finding feeders is going to become harder as the nation’s beef cow herd has been culled so aggressively.”
The CME Feeder Cattle Index increased 19 cents to close at $158.68.
Corn futures were modestly higher, with the July contract up 7 cents to $7.64 and the September contract up two pennies to $7.27.
Kansas: Winter Livestock in Dodge City sold 1,051 head on Wednesday. Compared to a week earlier, steers 400-950 lbs. sold $10-13 higher on light receipts. Heifers 400-940 lbs. sold $7-12 higher on light receipts. Benchmark steers averaging 667 lbs. sold between $169-176, averaging $174.11. — Anna Miller, WLJ managing editor
