Wednesday markets
Cattle markets are headed higher, especially in the cash market, where premiums of $2-4 over last week are being seen.
Live cattle futures were higher today. The October contract gained 40 cents to close at $127.22, and the December contract gained 12 cents to close at $131.57.
There was a substantial amount of cash trade today, along with higher prices. Live steers sold between $125-128, averaging $126.41. Dressed steers sold between $196-200, averaging $199.83. On the formula side, a total of 17,500 head averaging 894 lbs. sold for an average of $205.53.
“This week, the market is finally making a move, but this time it is sustainable as cash will continue to grind higher well into December,” remarked Cassie Fish, market analyst, in The Beef.
The Fed Cattle Exchange listed 2,692 head for its weekly online sale. Of that, 394 head from Texas actually sold, between $125.50-125.75. The Exchange will also hold a special weekly sale tomorrow.
Slaughter for the day is projected at 122,000 head, a thousand head above the same time last week. Slaughter for the week so far is estimated at 366,000 head, several thousand head higher than last Wednesday.
“For the first time in a very long time, the cattle market is beginning to behave in a manner that suggests that front-end supplies are getting cleaned up, and if kills stay elevated, leverage will continue to improve,” Fish said.
Boxed beef prices were lower on 162 loads. The Choice cutout lost $1.13 to close at $283.63, and the Select cutout lost 85 cents to close at $261.69. The Choice/Select spread is currently sitting at a little over $20, at $21.94.
Feeder cattle
Feeder cattle futures were mixed today. The October contract gained 52 cents to close at $156.50, while the November contract lost $1.30 to close at $158.47.
The CME Feeder Cattle Index gained 53 cents to close at $156.03.
“Cow-calf producers are sending their calves to town, and with the market showing promising long-term upside potential in the live cattle sector, feeder cattle prices will most likely see a bump in the countryside as well,” remarked ShayLe Stewart, DTN market analyst, in her midday comments.
Corn futures were up, with the December contract up 13 cents to $5.57 and the March contract up 13 cents to $5.66.
Colorado: Winter Livestock in La Junta sold 1,017 head Tuesday. Compared to a week earlier, steer and heifer calves were lightly tested. Yearling feeder steers sold $1-2 higher. Yearling feeder heifers were scarce. Benchmark steers averaging 776 lbs. sold between $153.25-155.50, averaging $154.83. — Anna Miller, WLJ managing editor
