Wednesday markets
“The live cattle complex is seeing a modest surge of support developing in the contracts after enduring two days of steadily lower prices,” reported ShayLe Stewart, DTN livestock analyst.
The board was slightly higher today for live cattle futures, with the October contract up 7 cents to $107.15, the December contract up $1.03 to $111.20, and the February contract up 60 cents to $114.80.
“The countryside sits at a crossroad, waiting patiently for packers to up their bids and let the cards fall again as they did through last week’s trade—to higher prices,” Stewart said. “Packers would like to get cattle bought for steady prices as opposed to paying more this week, but as feeders hold their cards tight to their chests, they may end up paying more again this week.”
Slaughter for the day is expected to be 120,000 head, steady with a week ago and slightly above last year. Total slaughter for the week as of today is estimated at 361,000 head, compared to last year’s 350,000 head, likely as a result of the Tyson fire decimating capacity last fall.
Boxed beef prices saw a slight increase today, with the current Choice-Select spread at $8.27. On 169 loads, the Choice cutout gained 43 cents to $215.87 and the Select cutout gained $1.30 to $207.60.
Feeder cattle
“Feeder cattle contacts would love nothing more than for their market to trade higher as the heart of the fall run is right around the corner and some sale barns are already seeing more calves come across their scales,” Stewart said.
Pre-release estimates of the next Cattle on Feed report are bearish and estimate cattle on feed and placements up, but marketings down.
Feeder cattle futures were green across the board. September was up 30 cents to $142, October up 90 cents to $141.53, and November up 48 cents to $141.65. The latest known CME Feeder Cattle Index was up 40 cents to $142.45.
Ozarks Regional Stockyards in West Plains, MO, sold 3,939 head yesterday. The auction reported compared to last week, steer and heifer calves traded steady to $3 higher, with spots $6 higher. Most of the gain was on heavier weight, weaned and vaccinated calves. There was too few yearlings last week for an adequate comparison, however undertones were sharply higher on yearling steers.
Demand was moderate on calves and very good on yearlings. The supply was moderate to heavy with several pot-load drafts in the offering, including one draft of 275 head of 9-weight steers.
Winter Livestock in La Junta, CO, sold 3,276 feeder cattle yesterday. Steer calves under 500 lbs. sold $1-2 lower, 500 to 600 lbs. sold $3-4 lower, 600 to 700 lbs. sold mostly steady. Heifer calves sold uneven; under 600 lbs. sold $2-3 higher except for 450 to 500 lbs. sold $3-5 lower and 600 to 700 lbs. sold steady. Yearling feeder steers and heifers sold steady to $2 higher.
Imperial Auction Market in Imperial, NE, sold 1,785 head yesterday. There were not enough sales for a comparison, but demand was good for all offerings. — Anna Miller, WLJ editor
