Thursday markets
Cattle futures are trading lower amid increased technical selling pressure, as traders react to a lack of stronger fundamental support.
Live cattle futures continue their descent, with the December contract $1.57 lower to close at $214.72 and the February contract down $1.85 to $215.40.
“Without seeing more fundamental support, the live cattle complex is trading lower into midday Thursday as traders are disappointed to note the decline in fed cash cattle prices again this week, and aren’t overly thrilled with boxed beef prices being mixed again this morning,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments.
Cash trade was moderate, with 9,505 head sold. Live steers sold for $212-224, and dressed steers sold between $332-338.
On the formula side, 34,600 head averaging 9632 lbs. sold for an average of $362.53.
“So far this week, Northern dressed cattle have traded at mostly $345, which is $6 lower than last week’s weighted average,” Stewart wrote. “Southern live cattle have traded at $224, which is $4 lower than the previous week’s weighted average.”
Today’s slaughter is estimated to be 120,000 head, the same as the prior week.
Actual slaughter for the week ending Nov. 8 was 568,948 head. The average steer dressed weight was 980 lbs.
Boxed beef prices were slightly lower on 116 loads, with the Choice cutout up 5 cents to $371.28 and the Select cutout 63 cents higher to $354.18.
Feeder cattle
Feeder cattle futures closed lower, with the November contract down $1.20 to $340.65 and the January contract $5.07 lower to close at $316.37.
The CME Feeder Cattle Index was 56 cents higher to $340.02.
Corn futures closed lower, with the December and March contracts down 3 cents to $4.26 and $4.37, respectively.
Kansas: Winter Livestock in Dodge City sold 1,502 head on Wednesday. Compared to the previous auction, steers and heifers under 650 lbs. sold $5 higher and sharply lower in spots. There were not enough comparable sales of steers and heifers over 650 lbs. for an accurate trend. Benchmark steers averaging 797 lbs. sold for $341.
Nebraska: Huss Livestock in Kearney sold 3,621 head on Wednesday. Compared to the last auction, steer calves 450-750 lbs. sold steady to $5 higher, except for 600-650 lbs. steer calves selling steady to $4 lower. All weights of heifer calves sold steady to as much as $20 lower. Benchmark steers averaging 776 lbs. sold for $337-357, averaging $351.70.
Oklahoma: OKC West in El Reno sold 7,652 head on Wednesday. Compared to the last auction, feeder steers sold $4-14 lower and feeders heifers were $3-13 lower. Steer and heifer calves sold unevenly steady. Benchmark steers averaging 716 lbs. sold for $335-347.50 and averaged $343.56. — Charles Wallace, WLJ contributing editor
