Wednesday markets
Markets were able to gain some momentum today, with live and feeder cattle contracts trading mixed. Cash cattle trade numbers were much higher, but not able to reach much higher than $114.
Live cattle contracts were slightly lower, with the April contract losing 2 cents to $119.40 and the June contract losing 7 cents to $117.67.
“The live cattle market is a tough environment right now as cash cattle sellers can’t get the interest or support they need and the board is willing to cave to any pressure the day may find,” remarked ShayLe Stewart, DTN livestock analyst, in her midday comments.
Cash trade totaled nearly 40,000 head today, with prices ranging from $110-114.25 for live steers. Dressed steer prices ranged from $179-180.50.
On the formula side, a total of 16,600 head averaging 855 lbs. sold for $183.71.
Stewart called the early cash trading disappointing, as “making trade wait until the later part of the week always favors a stronger cash cattle market.” Packers are running high processing speeds and are obviously in demand of cattle.
The Fed Cattle Exchange listed 1,592 head today for their weekly online sale. Of that, 757 head sold from Texas/Oklahoma/New Mexico. Heifers sold for $114.08 and steers for $114.
Slaughter capacity is looking like 121,000 head today, right on trend with last week and last year. To date this week, a total of 364,000 head have been processed.
Boxed beef prices lost a little bit of value today. On 120 loads, the Choice cutout was down $1.65 to $233.03 and the Select cutout was down $1.93 to $224.24.
Feeder cattle
Feeder cattle contracts traded modestly higher today against a declining corn contract. March feeders were up 47 cents to $137 and April feeders were up 82 cents to $141.30. The March corn contract was down 10 cents to $5.50. CME reported their Feeder Cattle Index down 37 cents to $137.17.
“Demand throughout the countryside is favoring cattle and lightweight feeders that can make suitable grass cattle. Diving into lots, having no other option but to go straight onto a feed ration, is a risky purchase right now for buyers,” Stewart said.
Colorado: Winter Livestock in La Junta sold 2,130 head Tuesday. Compared to the previous sale, feeder steers under 400 lbs. sold $3-5 higher; 400-700 lbs. sold steady to $2 higher, except five-weights sold $3-5 lower. Feeder heifers under 500 lbs. sold steady to $3 lower, with the decline on 450-500 lbs.; 500-700 lbs. sold $1-3 higher. Feeder steers and heifers over 700 lbs. sold mostly steady. Benchmark steers averaging 724 lbs. sold between $133-138. — Anna Miller, WLJ editor
