Wednesday markets
Futures generally traded lower today, and while the volume of cash trade was higher compared to earlier in the week, prices were steady to lower with last week.
Live cattle futures were mixed, with the October contract up 5 cents to $124.17 and the December contract down 20 cents to $129.45.
“Limited interest developed in the live cattle market, with most of the pressure seen in feeder cattle trade,” remarked Rick Kment, DTN contributing analyst.
“The majority of Tuesday’s gains are holding, but concerns of follow-through weakness in beef values may slowly erode prices back near support levels seen Monday.”
Finally, there was a fair amount of cash trade today. However, while cash trade was high in volume, prices were steady to lower compared to last week. Live steers sold between $123-126, averaging $123.97, and dressed steers sold between $196-200, averaging $199.04. On the formula side, a total of 17,500 head averaging 868 lbs. averaged $207.55.
The Fed Cattle Exchange did not hold their weekly auction today due to technical difficulties. It is uncertain whether the sale will be pushed to tomorrow or next week.
Slaughter for the day is expected to reach 121,000 head, bringing the week’s total to 355,000 head. We are still running about 5,000 head short compared to the same time last year, due to the JBS Grand Island, NE, beef plant shutdown on Monday.
Boxed beef prices plummeted, especially for Select beef. On 191 loads, the Choice cutout lost $3.07 to $319.82, and the Select cutout lost $6.73 to $283.89.
Feeder cattle
Feeders were lower today. The September contract lost 55 cents to close at $154.72, and the October contract lost $1.65 to $156.50. The CME Feeder Cattle Index was down 19 cents to $154.20.
Corn futures had a good day, with the December contract up 12 cents to $5.33 and the March contract up 12 cents to $5.40.
“The widespread market support that developed Tuesday was very important to not only stop the aggressive downward price cycle but could be the point needed to help establish long-term support in a still weak feeder cattle market,” Kment said.
“Over the next two trading sessions, nearby feeder cattle contracts will need to hold above Monday’s support level, or additional liquidation is likely to actively develop in all contract months.”
Kansas: Winter Livestock in Dodge City sold 1,846 head on Wednesday. Compared to the previous sale, feeder steers 450-900 lbs. sold unevenly steady. Feeder heifers 500-950 lbs. sold $4-7 lower. Benchmark steers averaging 775 lbs. sold between $155.75-159.75, averaging $157.79. — Anna Miller, WLJ managing editor
