Wednesday markets
The cattle market found itself trading in another lower to sideways direction today.
Live cattle futures were lower, with the June contract down 42 cents to $132.30 and the August contract down 22 cents to $132.52.
Cash trade was moderately slow today. A total of 16,565 head sold, with live steers selling between $137-142 and dressed steers selling from $222-227. Cash trade for the week so far totals about 47,000 head.
On the formula side, a total of 21,400 head averaging 854 lbs. sold for an average of $225.65.
Slaughter for the day is estimated at 125,000 head, bringing the week’s total to 375,000 head so far, a thousand head more than a week earlier.
Boxed beef prices were lower on 102 loads. The Choice cutout lost 72 cents to close at $262.93, and the Select cutout lost $1.29 to close at $244.06.
“Cheaper wholesale beef prices impact packer margins and volume decisions. For now, slaughter levels have been solid and packers seem to be sticking with schedules planned for two of the busiest fed cattle slaughter months of the year, May and June,” said Cassie Fish, market analyst, in The Beef.
“But all of these variables cast some added risk on how the summer and fall market will play out, especially with a record number of cattle on feed heading into summer.”
Feeder cattle
Feeder cattle futures were mixed today. The May contract gained 10 cents to close at $154.60, and the August contract lost 20 cents to close at $167.95.
The CME Feeder Cattle Index gained 18 cents to close at $153.35.
Corn futures were mixed, with the July contract up less than half a penny to $7.72 and the September contract down a penny to $7.39.
“Yes, the country needs rain, yes, the market needs to see strong consumer demand, but with cost of gains already historically high—feeder cattle buyers are glued to the corn market as it dictates what they can afford to pay for feeders,” said ShayLe Stewart, DTN livestock analyst, in her midday comments.
“Given that early summer sales are about to begin in a month, everyone is scrambling to get a gauge on what feeder cattle prices could be this year.”
Kansas: Winter Livestock in Dodge City sold 1,694 head on Wednesday. Compared to a week earlier, feeder steers 550-975 lbs. sold $4-8 higher. Feeder heifers 750-900 lbs. sold steady to $2 higher. Heifers 400-750 lbs. sold unevenly steady. Benchmark steers averaging 796 lbs. sold between $150-156 and averaged $155.03. — Anna Miller, WLJ managing editor
