Wednesday markets
The cattle market traded mostly sideways today, with futures slightly lower and cash trade bids limited.
Live cattle futures were lower, with the June contract down 50 cents to $134.82 and the August contract down 25 cents to $137.07.
“As we watch the live cattle market’s trade trek through Wednesday, it’s not that surprising to see the futures market trending lower after two extremely strong days earlier in the week, and it’s not surprising to see cash cattle trading, or even surprising to see them trading with time,” wrote ShayLe Stewart, DTN livestock analyst, in her midday comments.
“Feedlots are willing to sell cattle with time today because the market is on the brink of undergoing a seasonal transition. Upon May’s arrival, not only can we expect nicer spring weather, but also that calf-fed fats are going to saturate the market overnight.”
There was a sizable amount of cash trade today, with 44,524 head sold. Live steers sold between $140-148, averaging $143.38. Dressed steers sold from $230-234, averaging $231.63. To date this week, cash trade totals only about 59,000 head.
On the formula side, a total of 22,800 head averaging 868 lbs. sold for an average of $229.33.
Slaughter for the day is estimated at 126,000 head, bringing the week’s total so far to 363,000 head. The same time last week, slaughter totaled 375,000 head.
Boxed beef prices were barely higher on 131 loads. The Choice cutout gained 19 cents to close at $259.74, and the Select cutout gained 34 cents to close at $247.68.
“Boxed beef prices are unexpectedly weak, with plenty of unsold product around. Middle meats, in particular, seem to be finding price resistance,” said Cassie Fish, market analyst, in The Beef. “One could conclude that the ‘crazy high middle prices’ of the last two years coupled with inflation taking dollars away from discretionary spending are having an impact on consumer demand.”
Feeder cattle
Feeder futures traded mostly sideways, with the May contract down 15 cents to $162.25 and the August contract down 7 cents to $176.20.
The CME Feeder Cattle Index lost 2 cents to close at $155.75.
Corn also traded mostly sideways, with the May contract down 2 cents to $7.98 and the July contract up a penny to $7.94.
“Cattle sold in the summer months will report large losses at these price levels. The market is forecasting the brunt of the price declines will fall on the live cattle owners but look for changing leverage between cattle owners and processors to change the sharing of those price declines. Processing margins are equally a likely target for much of the price decline,” said the Cattle Report.
Kansas: Winter Livestock in Dodge City sold 1,962 head on Wednesday. Compared to a week earlier, feeder steers 700-950 lbs. sold $2-3 higher, and while there was no recent comparison on steers weighing 950-1,100 lbs., a higher trend was noted. Steer calves 500-700 lbs. sold $8-9 higher. Feeder heifers 700-925 lbs. sold $2-4 higher, and heifer calves 500-700 lbs. sold $4-6 lower. Benchmark steers averaging 722 lbs. sold between $173-174, averaging $173.49. — Anna Miller, WLJ managing editor
