Wednesday markets
Feedlots are holding out to packers, waiting to see if they can nab higher bids for fat cattle. Live cattle futures were higher, but feeder futures were mixed, still watching the uptick in corn prices.
Live cattle futures were moderately higher, with the December contract up 50 cents to $132.22 and the February contract up 30 cents to $136.40.
Cash trade for the day was minimal at 4,389 head, much lower compared to previous Wednesdays. Live steers sold between $131-132, averaging $131.77, and dressed steers sold for $207. On the formula side, a total of 12,300 head averaging 891 lbs. sold for an average of $208.53.
“Thankfully, with the recent rally that feedlots have been able to push, no one has jumped at steady money,” remarked ShayLe Stewart, DTN livestock analyst, in her midday comments.
“The week’s vigorous slaughter pace also tells feedlots that packers are still clipping through their inventory and are going to continue to need cattle, which may even mean they have to pay the piper again this week.”
The Fed Cattle Exchange Auction listed a total of 1,973 head for its weekly online auction, of which 308 actually sold. Opening prices ranged from $130-131, and high bids ranged from $131-132.25.
Slaughter for the day is estimated at 122,000 head, on pace with the same time last week. Slaughter to date this week is about 365,000 head, also right on pace with last week.
Boxed beef prices are lower still, with the Choice/Select spread on 188 loads down to $14.41. The Choice cutout lost $3.66 to close at $278.47, and the Select cutout lost $2.53 to close at $264.06.
“The rib could have a last minute rally prior to early December, but for now it is free-falling after staging a half-hearted rally in early November,” said Cassie Fish, market analyst, in The Beef. “End users were punished in August as the rib stormed to all-time highs. The piper has turned up to be paid.”
Feeder cattle
Feeder cattle futures were mixed today. The November contract gained 42 cents to close at $156.07, and the January contract lost 35 cents to close at $158.92. The CME Feeder Cattle Index lost a penny to close at $155.48.
Corn futures were moderately higher, with the December contract up 4 cents to $5.75 and the March contract up 4 cents to $5.81.
“The feeder cattle contracts are annoyed with Wednesday’s trade as they see the live cattle contracts rallying and bids starting to come from packers, but the corn market is rallying again, which makes it difficult to trade higher as feed costs are a heightened concern,” Stewart said.
Missouri: Ozarks Regional Stockyards in West Plains sold 3,460 head Tuesday. Compared to the previous sale, steer calves traded steady to $3 higher, while heifer calves traded steady to $3 lower. Benchmark steers averaging 777 lbs. sold between $153-160.50, averaging $156.39. — Anna Miller, WLJ managing editor
