Wednesday markets
“Hesitation started to build throughout Tuesday’s trade but as Wednesday has clipped further and further into its day, the livestock complex is trading mostly lower,” reported DTN Livestock Analyst ShayLe Stewart.
“The tension with the cash cattle market is only growing thicker as the Fed Cattle Exchange wasn’t able to sell any lots Wednesday morning and though some cattle feedlots have been offered bids, feeders are not interested as they are below their asking prices.”
Compared to last week in the Texas Panhandle, live purchases moved $1.50-2 higher from $103-103.50 on a light test. In Kansas, live purchases moved $2 higher at $103. Nebraska and the western Corn Belt saw very inactive cash trade on light demand. Last week, Nebraska cash cattle moved mostly at $101 and the western Corn Belt saw prices at $100-103.
A total of 13,352 cattle traded on the cash market today, quite a step up from yesterday’s numbers below 300 head. Same time last week, 27,387 head traded on the cash market, and last year only 3,177 head.
Formula trade was a little lower compared to yesterday, with 18,700 head at 893 lbs. bringing $167.62.
CME live cattle futures saw some slight movement: The October contract dropped 38 cents to $106.73, December was up 38 cents to $111.95, and February was up 23 cents to $116.25.
Today’s slaughter is estimated at 120,000 head, on par with last week but slightly above last year. To date, slaughter for the week is at 360,000 head.
Boxed beef prices saw a slight downward trend: On 166 loads, the Choice box dropped 71 cents to $215.38 and the Select box dropped $1.77 to $204.51.
Feeder cattle
“Feeder cattle futures are red and staying that way, as concerns fall grazing demand will be down significantly due to drought in the Texas Panhandle, Colorado, and parts of western Kansas,” said Cassie Fish, market analyst in The Beef. “Rains east of the Panhandle have improved wheat pasture prospects there, but there will not be close to as many cattle turned out for grazing this year compared to last year.”
The September contract was down $1.18 to $140.50, October down $1.28 to $142.43, and November down 60 cents to $143.53. The latest known CME Feeder Cattle Index was $140.52.
Winter Livestock La Junta, CO, sold 1,575 feeders yesterday. Compared with last Tuesday, steer calves under 400 lbs. were steady with instances of $8 higher and 400-600-lb. calves sold $3-5 higher. Heifer calves under 400 lbs. sold steady to $2 higher, and over 400 lbs. sold $2-3 higher.
Ozarks Regional Stockyards Feeder Cattle in West Plains, MO, sold 2,983 head yesterday. Compared to last week, steer calves 550-700 lbs. traded steady to $4 higher with other weights unevenly steady. Heifer calves under 700 lbs. traded steady with heavier weights not well tested. Demand was good early and moderated throughout the day. The supply was moderate with most of the offering presented in single or small packages. — Anna Miller, WLJ editor
