Wednesday markets
While feeder cattle futures continued their momentum higher, live cattle futures experienced a setback today, waiting for cash trade to trade higher.
Live cattle futures sank lower. The April contract lost $1.50 to close at $139.35, and the June contract lost $1.27 to close at $135.52.
“The disappointing futures action occurred on the backdrop of most packers bidding steady with last week’s market, though one bid $140 in western Nebraska,” said Cassie Fish, market analyst, in The Beef. “Cattle feeders have been passing bids all week, but the futures sell-off undermined the likelihood of widespread higher cash trade this week.”
There was some cash trade today, with 3,220 head sold. Live steers sold between $138-141, averaging $139.78. Dressed steers sold for $222. On the formula side, a total of 20,300 head averaging 858 lbs. sold for an average of $224.65.
Slaughter for the day is estimated at 125,000 head, bringing the week’s total to 375,000 head—on pace with the same time last week.
“From the sounds of it, two large plants this week will perform cooler cleaning so this week’s slaughter level will likely mirror last week’s 644K head,” Fish said. “Boxed beef values continue to find modest seasonal strength.”
Boxed beef prices were higher on 123 loads. The Choice cutout gained 18 cents to close at $258.08, and the Select cutout gained $1.43 to close at $250.27.
Feeder cattle
Feeder cattle futures traded modestly higher. The March contract gained 90 cents to close at $157.25, and the April contract gained two pennies to close at $162.65. The CME Feeder Cattle Index gained 33 cents to close at $153.14.
“Wednesday comes as the fourth consecutive day of higher trade now for the feeder cattle complex, which should help potential buyers of calves and feeders feel more confident about stepping back into the market,” said ShayLe Stewart, DTN livestock analyst, in her midday comments.
Corn futures posted lower. The May contract lost 28 cents to close at $7.30, and the July contract lost 26 cents to close at $6.97.
Colorado: Winter Livestock in La Junta sold 2,648 head on Tuesday. Compared to a week earlier, feeder steers under 500 lbs. sold mostly steady, 500-600 lbs. sold $3-5 lower, 600-800 lbs. sold $3-5 lower with instances of $8 lower, and over 800 lbs. sold steady. Feeder heifers under 500 lbs. sold $3-5 lower, 500-600 lbs. sold $5-8 lower, 600-700 lbs. sold steady and over 700 lbs. sold steady to $2 higher. — Anna Miller, WLJ managing editor
