Wednesday markets
It was red across all the commodities today. Cash trade continues to be light, as feedlots are holding out for higher bids.
Live cattle closed lower, with the October contract down 80 cents to $144.25 and the December contract down 80 cents to $150.07.
Cash trade was light, with 1,034 head selling at $138.
“Determining when trade will break loose and when cattle will begin to sell, really falls on feedlots as they’ll either accept packers’ early bids or hold out and wait for more money,” ShayLe Stewart, DTN livestock analyst, wrote in the midday comments. “A few bids have been offered in the North as one major packer is offering $226 in Iowa, and another major packer is offering $222 in eastern Nebraska. Nevertheless, Wednesday afternoon’s trade will be worth watching as feedlots clearly understand that with vigorous processing speeds and current showlists they now possess more leverage in today’s market.”
On the formula side, 24,600 head averaging 869 lbs. sold for $234.56.
Slaughter for the day is projected to be 128,000 head, 3,000 above last week.
Boxed beef prices closed mixed on 218 loads, with the Choice cutout up 87 cents to $261.34 and the Select cutout down $1.79 to $237.51.
“Boxed beef values sagged last week, making a new low for the move only to rebound by mid-morning today almost $1,” Cassie Fish, market analyst for The Beef, wrote. “September is known for being a seasonal slow beef month. Packers were able to back cash fed cattle prices off last week, saving them some margin.”
Feeder cattle
Feeder cattle closed sharply lower, with the September contract down $2.15 to $182.02 and the October contract also down $2.15 to $183.95. The CME Feeder Cattle Index was down 44 cents to $179.14.
“After Tuesday’s ambitious trade, the market is trending lower but is still holding above the market’s 40-day moving average, showing that its downside pressure isn’t too extreme,” Stewart wrote.
Corn closed lower, with the September contract down 4 cents to $6.76 and the December contract down 5 cents to $6.71 a bushel.
Missouri: Ozark Regional Stockyards in West Plains sold 1,748 head Tuesday. Compared to the previous auction, steer calves over 550 lbs. and all weights of heifers traded $3-6 higher, while lighter steers traded $3-6 lower. Of the offering this week, 64% weighed under 600 lbs., with many of them short-weaned or unweaned. A group of steers averaging 711 lbs. sold between $180-185, averaging $180.66.
South Dakota: Hub City Livestock in Aberdeen sold 1,523 head Wednesday. Compared to the last auction, most weight classes were not well compared. The best test on steers 950-1,000 lbs. sold $2-4 lower on a narrow comparison. A group of steers averaging 825 lbs. sold for $187.
Texas: Lonestar Stockyards in Wildorado sold 1,328 head Tuesday. Compared to the previous auction, feeder steers traded mostly steady to firm. Feeder heifers traded firm to $5 higher. Steer and heifer calves traded $5-10 higher. A group of steers averaging 730 lbs. sold between $175-179 and averaged $178. — Charles Wallace, WLJ editor
