Wednesday markets
Cattle markets saw some movement today with higher cash prices noted. However, concern remains about the volume of cash cattle sold and the slow capacity of processors.
Live cattle saw some slight gains, with the June futures contract up 15 cents to $116.90 and the August contract up 40 cents to $120.12.
A total of 16,642 head traded on the cash cattle market, selling between $119-121.25. Dressed steers sold between $190-193. On the formula side, 17,100 head averaging 842 lbs. sold for $192.20.
Although prices have been higher this week, the packer seems to be “window dressing, rather than seriously accumulating more physical inventory at this week’s higher price level,” remarked Cassie Fish of The Beef.
“Given the large number of committed cattle and the too slow slaughter pace, it is no surprise packers aren’t more aggressive. Add in the fact that cutout values are likely reaching the end of an incredible rally, and it seems obvious,” she said.
The Fed Cattle Exchange hosted their weekly sale Wednesday, listing 2,792 head. Of that, only 336 head sold. Reserve prices were listed mostly at $119-120 and high bids reached $117.50-119.75. Texas sold 167 head and Kansas sold the remaining 169 head.
Slaughter for the day is projected to reach 118,000 head, on trend with the same time last week. This week to date, slaughter totals 353,000 head. This is several thousand head above last Wednesday, but whether or not slaughter will reach necessary capacity over the next few days is uncertain.
Boxed beef prices made some slight gains on 122 loads, with the Choice cutout up 4 pennies to $323.38 and the Select cutout up 64 cents to $299.69.
Feeder cattle
Feeder cattle sold mixed, with the May contract down 62 cents to $136.57 and the August contract up 95 cents to $152.87. CME posted its latest Feeder Cattle Index up 10 cents to $133.80. The price of corn was mostly unchanged, with the July contract making no movement and the September contract down cents to $6.58.
“If the cash cattle market could show some strength it would help the feeder cattle contracts,” remarked ShayLe Stewart, DTN livestock analyst. “But as of right now the only supporting factor the market has to look to is the recent rain parts of the countryside have been blessed with and the lower trending corn prices.”
Colorado: Winter Livestock in La Junta sold 279 head Tuesday. Feeder steers and heifers were lightly tested. A group of steers weighing 705 lbs. sold for $140.
Kansas: Winter Livestock in Dodge City sold 660 head Wednesday. There were not enough steers or heifers for a market test, however a lower trend was noted. A group of benchmark steers averaging 791 lbs. sold for $133. — Anna Miller, WLJ managing editor
