Wednesday markets
Cattle markets were mostly lower today, although there was a substantial amount of cash trade.
Live cattle futures were in the red for all contracts, with the October contract down 22 cents to $121.77 and the December contract down 45 cents to $127.05.
A good chunk of cash trade took place today, with 43,413 head traded. Live steers sold between $121-124, averaging $122.85. Dressed steers sold between $188-196 and averaged $195.60. On the formula side, a total of 22,100 head averaging 866 lbs. averaged $206.60.
The Fed Cattle Exchange listed 3,350 head for its weekly online sale, of which 611 head sold. Sale prices ranged from $122.25-124.
Slaughter for the day is expected to be 116,000 head, bringing the week’s total to 352,000 head. This is about 11,000 head behind the same time last week.
“News that another plant is thought to be cleaning coolers this week, in addition to one major plant already scheduled, will bring that total to two and lower this week’s slaughter expectations to 640K, about the same as last week,” remarked Cassie Fish, market analyst in The Beef.
“A third plant is rumored to have an issue which impacted slaughter yesterday and has caused the plant to be dark today. The slaughter pace continues to frustrate both cattle feeders and end users alike.”
Boxed beef prices were lower on 158 loads. The Choice cutout lost $4.23 to finally bring the cutout below $300, at $297.33. The Select cutout lost $2.57 to close at $271.78.
Feeder cattle
Feeders lost some value today. The September contract lost 12 cents to $154.27, and the October contract lost $1.50 to $154.62. The CME Feeder Cattle Index was unchanged today at $154.81.
On the other hand, corn futures gained some value. The December contract increased 6 cents to $5.39, and the March contract gained 6 cents to $5.47.
“With increased cash feeder cattle sales over the coming weeks, and more cattle moving from pasture to feedlots, the potential for seasonal market pressure remains,” wrote Rick Kment, DTN contributing analyst, in his morning comments.
“But this will not overshadow the expectation that long-term supply tightness is still expected in both feeder cattle and live cattle numbers as the beef herd continues to contract.”
Kansas: Winter Livestock in Dodge City sold 1,429 head Wednesday. Compared to the previous week, feeder steers and heifers 700-975 lbs. sold steady to $2 higher. Steer and heifer calves 400-700 lbs. sold steady. Benchmark steers averaging 775 lbs. sold between $155.75-156.25, averaging $155.98. — Anna Miller, WLJ managing editor
