Wednesday markets
Markets traded mostly steady today. Cash trade was even with a week ago, and futures are trading mostly sideways.
Live cattle futures traded mostly steady, with the April contract unchanged at $139.42 and the June contract up 27 cents to $135.97.
There was a sizable amount of cash trade today—however, bids were barely steady with a week earlier. Live steers traded from $135-139, and dressed steers sold from $220-225. On the formula side, a total of 11,700 head averaging 890 lbs. sold for an average of $222.94.
“To bulls, cash trading at $138 would have to be seen as a disappointment,” wrote Cassie Fish, market analyst, in The Beef. “There are a record number of cattle on feed, thanks to the drought and cost of gains are nosebleed high, so keeping cattle moving is a priority for some, more than holding out for more money.”
Slaughter for the day is estimated at 124,000 head, bringing the week’s total so far to 366,000 head. This is about 9,000 short of the same time last week.
Boxed beef prices were higher on 112 loads. The Choice cutout gained $1.64 to close at $261.61, and the Select cutout gained $1.37 to close at $253.26.
Feeder cattle
Feeder cattle futures traded mixed today. The March contract lost 22 cents to close at $156.10, and the April contract gained $1.20 to close at $161.77. The CME Feeder Cattle Index lost 16 cents to close at $154.97.
Corn futures were slightly higher, with the May contract up 4 cents to $7.57 and the July contract up 5 cents to $7.34.
“Demand in sales will likely hinge on buyers’ resources of feed. If they have feed already bought and committed for the cattle they’re buying now, then opportunity lingers,” wrote ShayLe Stewart, DTN livestock analyst, in her midday comments. “But amid uncertain grain markets and a summer that could be plagued with drought again, there’s a lot of unknowns about cattle buyers’ bottom lines.”
Colorado: Winter Livestock in La Junta sold 702 head on Tuesday. Compared to the previous sale, feeder steers under 700 lbs. were lightly tested, and over 700 lbs. were steady to $2 higher. Feeder heifers under 600 lbs. were lightly tested, 600-700 lbs. were $2-3 lower and over 700 lbs. were steady. Benchmark steers averaging 747 lbs. sold for an average of $153.50.
Kansas: Winter Livestock in Dodge City sold 1,026 head on Wednesday. Compared to a week earlier, feeder steers 800-950 lbs. sold steady to $2 higher. Heifers 400-900 lbs. sold steady to $2 higher. Benchmark steers averaging 720 lbs. sold between $148-150, averaging $149.19. — Anna Miller, WLJ managing editor
