Wednesday markets
Futures were down today, although cash trade is slowly finding some price support and climbing higher.
Live cattle futures were in the red today, down a quarter each. The October contract closed at $124.77, and the December contract closed at $129.
There was a sizable amount of cash trade today, with a total of 39,039 head sold. Live steers sold between $122-125, averaging $123.78. Dressed steers sold between $195-196, averaging $195.82. On the formula side, a total of 18,800 head averaging 863 lbs. sold for an average of $204.89.
“Generally, this is a steady to strong trade, and this week’s average price will inch up significantly from last week’s $122.96 5-area average price,” wrote Cassie Fish, market analyst, in The Beef.
“Certainly the fall low has been confirmed two weeks ago and now begins the slow grind higher the remainder of the year.”
The Fed Cattle Exchange listed 4,508 head for its weekly online sale, of which 272 head actually sold. Texas/Oklahoma/New Mexico sold the successful heifer lots for an average of $124.26. The Exchange also plans to host a special sale tomorrow morning.
Slaughter for the day is estimated at 120,000 head, bringing the week’s total to 361,000 head. This is slightly ahead of the same time last week by about 2,000 head.
Boxed beef prices were lower on 171 loads. The Choice cutout lost $1.05 to close at $280.02, and the Select cutout lost $2.65 to close at $258.70.
Feeder cattle
Feeders were also down today. The October contract lost 92 cents to close at $157.65, and the November contract lost 82 cents to close at $160.97. The CME Feeder Cattle Index gained 11 cents to close at $154.26.
“The overall focus on short-term supply levels and lack of underlying support in nearby live cattle trade is still keeping most feeder cattle traders cautious, as they fear a correction is developing following the significant and aggressive market rally seen over the last week,” wrote Rick Kment, DTN contributing analyst, in his midday comments.
Corn futures were down substantially, losing a dime on each contract. The December contract closed at $5.12, and the March contract closed at $5.22.
Colorado: Winter Livestock in La Junta sold 1,967 head Tuesday. Compared to the sale a week earlier, steer calves under 700 lbs. sold $2-3 higher, and over 700 lbs. sold steady. Heifer calves under 700 lbs. sold steady to $1 higher, except 500-600 lbs., which sold $2-3 higher. Heifers over 700 lbs. sold mostly steady. Benchmark steers averaging 885 lbs. sold between $141.35-148.35, averaging $145.53. — Anna Miller, WLJ managing editor
