Thursday markets
The biggest news Thursday morning for the livestock complex is the advancement in the fed cash cattle market, driven by a wild rally that traders have pushed due to fundamental support. Just moments ago, a thin movement of cattle were sold in Kansas at $230, which is $8 higher than last week’s weighted average.
Live cattle
Well, were you expecting that?! It was assumed traders would continue to support the live cattle complex so long as fundamental support was sufficient, and obviously, traders deemed the $3-8 jump in Southern live cattle prices Wednesday afternoon as enough support to justify another impeccable rally throughout the futures complex.
June live cattle are up $3.76 at $222.07, August live cattle are up $3.80 at $216.15 and October live cattle are up $2.65 at $213.25.
What’s so significant about this rally is that the spot August contract has blown past the market’s previous resistance threshold, and it’s looking like the contract could carve out a new contract high this afternoon if traders maintain this momentum through the close. Bids are currently on the table in Texas at $228 and in Nebraska at $235. Just moments ago, a thin movement of cattle was sold in Kansas at $230, which is $8 higher than last week’s weighted average. But Wednesday afternoon, Southern live cattle traded at $225-228, which is $3-6 higher than last week’s weighted average.
Boxed beef prices are mixed: choice up $2.39 ($367.55) and select down $0.74 ($355.98) with a movement of 64 loads (38.49 loads of choice, 11.79 loads of select, 9.77 loads of trim and 4.42 loads of ground beef).
Feeder cattle
Upon seeing the live cattle contracts launch higher, the feeder cattle complex couldn’t stand being left out, and so traders quickly followed suit, sending the feeder cattle contracts rallying as well.
August feeders are up $4.22 at $308.10, September feeders are up $3.87 at $307.02 and October feeders are up $3.62 at $304.90.
Demand continues to be impeccable in the feeder cattle complex as the market remains short of supply, and buyers want to have pens of cattle to market later this fall when prices are still projected to be record-breaking strong. — ShayLe Stewart, DTN livestock analyst
