Wednesday markets
The week of green continues, with all sides of the market up today.
Live cattle futures were higher. The October contract gained $1 to close at $123.82, and the December contract gained 37 cents to close at $128.22.
A substantial amount of cash trade took place today. A total of 40,133 head sold, with live steers selling between $122-124 and dressed steers selling between $193-196. On the formula side, a total of 21,400 head averaging 872 lbs. sold for an average of $205.16.
The Fed Cattle Exchange listed 2,371 head for their weekly online sale. A total of 414 head actually sold. Texas sold 295 head for $124.25, and Oklahoma sold 119 head for $123.
Slaughter for the day is projected at 121,000 head, compared to last week’s number of 116,000 head. The total number for the week so far is 363,000 head.
“With all plants running this week, (there is) optimism that this week’s slaughter level will exceed 650K head and possibly push 660K head, making up for the last couple of week’s underperformance,” wrote Cassie Fish, market analyst, in The Beef.
“It’s a good thing, as the next couple of weeks will see more plant maintenance chipping away at weekly throughput.”
Boxed beef prices were slightly lower on 157 loads. The Choice cutout lost $1.09 to close at $286.62, and the Select cutout lost $4.87 to close at $262.91.
“Bottomline, it is highly unlikely pressure on boxed beef prices will alter industry throughput as it remains curtailed post Q2 2020, and in fact has suffered more of late than the same timeframe a year ago,” Fish said.
Feeder cattle
Feeders were higher today. The October contract gained 70 cents to close at $156.80, and the November contract gained $1.25 to close at $158.12. The CME Feeder Cattle Index gained 9 cents to close at $152.88.
“Although it was obvious that last week’s selling was overstated and driven more by emotional selling than fundamental or technical indicators, the gains seen in the market over the last couple of days may have overcorrected the market shift, as noncommercial buyers remain reluctant to step into the market at this point,” wrote Rick Kment, DTN contributing analyst, in his midday comments.
Corn futures saw some losses, with the December contract down 5 cents to $5.32 and the March contract down 5 cents to $5.21.
“Regional supply and demand is likely to play a major role in how cattle sell over the next couple of weeks, potentially skewing overall market direction starting out the fourth quarter of the year,” Kment said.
Colorado: Winter Livestock in La Junta sold 1,595 head Tuesday. Compared to a week earlier, steer and heifer calves sold unevenly. Steer calves under 600 lbs. sold $2-3 higher, and 600-700 lbs. sold $2-3 lower. Heifer calves under 500 lbs. sold mostly steady, and 500-600 lbs. sold $5-8 lower. Yearling feeder steers and heifers over 700 lbs. were lightly tested. A group of unweaned steers averaging 672 lbs. sold between $136-142.50, averaging $140.38. — Anna Miller, WLJ managing editor
