Wednesday markets
Live cattle rallied today, but feeders were lower as corn closed up double digits.
Live cattle closed higher, with the June contract up $1.17 to $133.52 and the August contract up 55 cents to $134.50.
“CME cattle futures continue to ping pong up and down as this week progresses,” Cassie Fish, market analyst for The Beef, wrote. “June (live cattle’s) discount to cash prices, which are still averaging above $140, is providing support there while the deferred contracts are likely incurring hedge selling and softened interest in speculative long positions heading into summer. June posted an inside day so far, and the remaining contracts have all taken out yesterday’s lows, while Monday’s critical low still holds.”
Cash trade was active again today, with 14,591 head selling between $140-147, averaging $143.62. Dressed steers sold between $227-230 and averaged $227.87.
“Packers do have a considerable volume of cattle at their disposal as they’ve strategically padded their inventory over the last month,” ShayLe Stewart, DTN livestock analyst, wrote in the midday comments. “More trade is expected to develop ahead of the week’s end, but it could be a thin week compared to the last three weeks of over 100,000 head traded. Asking prices for cattle left on showlists are around $140-plus in the South and $232-plus in the North.”
On the formula side, 15,700 steers averaging 861 lbs. sold for $226.74.
On Wednesday, the Fed Cattle Exchange listed 1,317 head, of which 246 from Texas sold at $137. The remainder—1,071 head—went unsold, as they did not meet the reserve prices that ranged from $134-141. Opening prices ranged from $132-138, and high bids ranged from $137-140.
Slaughter for the day is projected to be 125,000 head, a thousand below last week.
Boxed beef prices were slightly down on 185 loads, with the Choice cutout down 16 cents to $255.08 and the Select cutout down 17 cents to $242.18.
Feeder cattle
Feeder cattle were lower as corn jumped higher, with the May contract down 77 cents to $158.15 and the August contract down $1.85 to $170. The CME Feeder Cattle Index was down 9 cents to $156.24.
Corn contracts closed double digits higher, with the May contract up 15 cents to $8.02 and the July contract up 13 cents to $7.88.
Colorado: Winter Livestock in La Junta sold 1,207 head Tuesday. Compared to the last auction, feeder steers and heifers were lightly tested, as feeders made up 60 percent of the head sold. A group of steers averaging 614 lbs. sold between $182-185, averaging $184.54.
Montana: Miles City Livestock in Miles City sold 1,354 head Tuesday. Compared to the last auction, feeder cattle were too lightly tested to develop an accurate market trend. However, steady undertones were noticed. Benchmark steers averaging 703 lbs. sold for $158.
Texas: Lonestar Stockyards in Wildorado sold 808 head Tuesday. Compared to the last auction, feeder steers and heifers sold unevenly steady with a light test in most weight classes. Benchmark steers averaging 755 lbs. sold for $152.50. — Charles Wallace, WLJ editor
