Thursday markets
Cattle futures stumbled today as profit-taking and sharp drops in boxed beef prices sent the livestock complex tumbling lower.
Live cattle futures closed lower, with the October contract 57 cents lower to close at $230.52 and the December contract down $1.02 to $233.47.
“Without any substantial fundamental support having developed in the complex this week, the live cattle contracts are yet again trading lower,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments. “And yes, the spot December live cattle contract is again trading below its 40-day moving average as traders continue to look around for immediate support—but are coming up short-handed from both a fundamental and technical sense.”
Cash trade was moderate, with 5,857 head sold. Live steers sold for $228-230, and dressed steers sold between $358-360.
On the formula side, 31,700 head averaging 947 lbs. sold for an average of $376.16.
Today’s slaughter is estimated to be 113,000 head, 2,000 head below a week earlier.
Boxed beef prices were sharply lower on 132 loads, with the Choice cutout $5.25 lower to $363.22 and the Select cutout down $3.49 to $343.40.
“Choice boxed beef prices dumped again today at midday, losing $5.37/cwt as the Choice chuck primal took a massive $8/cwt tumble to new lows for the move,” Cassie Fish, market analyst, wrote in The Beef. “At $363.10, that’s the lowest quote since early August. Again, seasonal sloppiness is the norm and certainly the end primals have been especially sluggish.”
Feeder cattle
Feeder cattle futures closed sharply lower, with the October contract $4.67 lower to close at $354.30 and the November contract down $5.20 to $352.40.
The CME Feeder Cattle Index was 62 cents lower to $364.71.
Corn futures closed higher, with the December and March contracts up 5 cents to $4.21 and $4.38, respectively.
Kansas: Winter Livestock in Dodge City sold 3,544 head on Wednesday. Compared to the previous auction, 700-pound steers sold $8 higher. Steers over 800 lbs. sold steady to $6 lower, while under 800 lbs. sold steady with a soft undertone. Heifers over 600 lbs. sold steady with a soft undertone and under 600 lbs. sold steady with a strong undertone. Benchmark steers averaging 733 lbs. sold for $354-377, averaging $358.59.
Oklahoma: OKC West in El Reno sold 7,435 head on Wednesday. Compared to the previous auction, feeder steers sold $10-15 lower, except for 800-850 lbs., which traded $4 lower. Feeder heifers over 700 lbs. sold $15-18 lower and under 700 lbs. were $8 lower. Steer calves sold $10-15 lower. Heifer calves sold $10-20 lower. Benchmark steers averaging 733 lbs. sold between $377-392.50 and averaged $382.92.
Wyoming: Torrington Livestock in Torrington sold 2,753 head on Wednesday. Compared to the previous auction, feeder steers and heifers traded $1-3 higher. Benchmark steers averaging 766 lbs. sold for $375-385 and averaged $381.96. — Charles Wallace, WLJ contributing editor
