Wednesday markets
Feeder futures managed to turn themselves around and headed higher today. Live cattle futures were modestly lower, and cash trade was steady.
Live cattle futures were lower, with the April contract down 42 cents to $140.10 and the June contract down 55 cents to $136.50.
Cash trade was fairly active today, with 29,408 head sold. Live steers sold from $140-142, and dressed steers sold from $224-225. On the formula side, a total of 16,700 head averaging 881 lbs. sold for an average of $230.42.
“There are a few bids being offered in parts of Texas at $140, but with asking prices at $144 in the South, I’d hope that feedlots stick to their asking prices as opposed to letting packers win this week’s quarrel,” remarked ShayLe Stewart, DTN livestock analyst, in her midday comments. “Feedlots know showlists favor their position and supplies of cattle are extremely current—all of which bodes well for the cash cattle market to rally.”
Slaughter for the day is estimated at 123,000 head, bringing the week’s total so far to 369,000 head—about 15,000 head above last week.
Boxed beef prices were lower on 145 loads. The Choice cutout lost 96 cents to close at $255.72, and the Select cutout lost 18 cents to close at $251.34.
Feeder cattle
Feeder cattle futures were able to swing several dollars higher today. The March contract gained $2.02 to close at $158.30, and the April contract gained $3.20 to close at $163. The CME Feeder Cattle Index lost 42 cents to close at $159.25.
Corn futures were down—but just barely. The March contract lost half a penny to close at $7.39, and the May contract also lost half a penny to close at $7.25.
“It will take some time before one can feel confident about where the grain complex’s trajectory lies,” Stewart said. “That likely won’t be known until the war with Ukraine and Russia ends. Ukraine is a big producer of grains and its welfare through this war directly affects our grain prices, which consequently affects feeder cattle prices as well.”
Colorado: Winter Livestock in La Junta sold 1,202 head Tuesday. Compared to a week earlier, steers under 700 lbs. sold steady to $3 lower, with the decline on 650-700 lbs. Steers over 700 lbs. were lightly tested. Heifers under 600 lbs. sold steady to $2 higher, with the advance on 450-500 lbs. Heifers 600-700 lbs. sold $3-5 lower, and over 700 lbs. sold $2-3 lower. —
Anna Miller, WLJ managing editor
