Wednesday markets
With slow processing speeds on the forefront of feeders’ minds, holding out for higher prices has been pushed to the back.
Live cattle futures traded lower, with the June contract down 27 cents to $116.45 and the August contract down 77 cents to $119.32.
“The bottom side of the market gave away and is showing just how desperate feedlots are to get cattle moved. With processing speeds slow, their desire to hold out for higher prices has gone to the wayside,” remarked ShayLe Stewart, DTN livestock analyst.
Cash trade volume was substantial today, with a total of 25,190 head sold. Live steers sold between $116-120.50 while dressed steers sold between $187-191. On the formula side, 18,500 head averaging 858 lbs. sold for $192.73.
The Fed Cattle Exchange held a special auction today, listing 15,237 head. Of that, only 1,419 head sold—1,081 head were listed as scratches and 12,737 head were unsold. Opening prices ranged from $100-119 and high bids ranged from $100-117.
Slaughter for the day is projected at 120,000 head, a couple thousand head higher than the same time last week. This week to date, slaughter totals 357,000 head. Last Wednesday, slaughter totaled 353,000 head. Last week was also the first time in a long stretch that slaughter reached nearly 670,000 head, so hopes are there for this week to follow.
Boxed beef prices had their first day of losses, with both the Choice and Select cutout down. On 119 loads, the Choice cutout lost 43 cents to $329.49 and the Select cutout lost 21 cents to $304.05.
Feeder cattle
Feeders were also down today, with the May contract down 12 cents to $136.50 and the August contract down $1.47 to $155.20. CME reported its latest Feeder Cattle Index up four cents to $136.35. Corn was up slightly today, with the July contract up 4 cents to $6.24 and the September contract up 6 cents to $5.47.
“Even with Tuesday’s substantial rally, cattlemen would like the market to continue its upside move. But until the cash cattle market can show some positivity, the feeder cattle contracts are relying solely on lower corn prices for their momentum,” Stewart said.
Colorado: Winter Livestock in La Junta sold 665 head Tuesday. Compared to the prior sale, feeder steers and heifers were too lightly tested although a higher undertone was noted. A group of steers averaging 726 lbs. sold for $138.
Kansas: Winter Livestock in Dodge City sold 1,674 head Wednesday. Compared to the previous sale, feeder steers 800-1,000 lbs. sold $4-5 higher, Feeder heifers 400-900 lbs. sold $5-8 higher. A group of fancy steers averaging 769 lbs. sold for $141.25. — Anna Miller, WLJ managing editor
