Thursday markets
Cattle futures saw a mild correction ahead of tomorrow’s Cattle on Feed report.
“It’s the first correction for CME cattle futures this week,” wrote Cassie Fish, market analyst, in The Beef. “October and December LC are above their respective 200-day moving averages for three days running and are holding it today, a feat not achieved since back in early July.”
Live cattle futures closed mixed, with the October contract down 67 cents to $229.75 and the December contract unchanged at $231.12.
Cash trade was light, with 66 head sold. On the formula side, 21,300 head averaging 951 lbs. sold for an average of $363.87.
“The negotiated fed cattle trade has been very slow to develop this week, with asking prices higher than a week ago and packers needing to replenish inventory, though packers are very reluctant to pay up,” Fish wrote.
Today’s slaughter is estimated to be 103,000 head, 1,000 head below last week.
Actual slaughter for the week ending Oct. 10 was 536,727 head. The average steer dressed weight was 986 lbs., up 3 lbs. from the prior week.
Boxed beef prices were lower on 123 loads, with the Choice cutout down $3.12 to $369.47 and the Select cutout $4.93 lower to $350.41.
Feeder cattle
Feeder cattle futures closed lower, with the October contract down $1.72 to $346.10 and the November contract $1.90 lower to $346.92.
The CME Feeder Cattle Index was down $1.29 to $342.16.
Corn futures closed lower, with the December contract down 2 cents to $4.60 and the March contract 3 cents lower to $4.74.
Colorado: La Junta Livestock in La Junta sold 2,207 head on Wednesday. Compared to the previous auction, feeder steers sold mostly lower, with some sharply lower, across all weight classes. Feeder heifers under 550 lbs. sold mostly sharply higher. Heifers over 550 lbs. sold $2-4 lower, with instances of sharply lower. Benchmark steers averaging 724 lbs. sold for $285-301, averaging $293.69.
Kansas: Winter Livestock in Dodge City sold 2,202 head on Wednesday. Compared to the last auction, steers over 700 lbs. sold $20 higher and steers under 700 lbs. sold $14 higher, with instances of sharply higher. Heifers under 600 lbs. sold $10 higher to sharply higher. There were not enough sales of heifers over 600 lbs. to test the market. Benchmark steers averaging 771 lbs. sold for $359.25-368.25, averaging $365.46.
New Mexico: Clovis Livestock in Clovis sold 3,557 head on Wednesday. Compared to the last auction, steer calves 300-500 lbs. sold $3-13 higher and 500-600 lbs. were $15-17 lower. Feeder steers 600-700 lbs. sold lower, with 700-750 lbs. being higher. Heifer calves 300-350 and 400-450 lbs. sold $5-12 higher and 450-600 lbs. were $10-15 lower. Feeder heifers sold steady to $10 higher. Benchmark steers averaging 726 lbs. sold for $340-349, averaging $346.49.
Wyoming: Torrington Livestock in Torrington sold 4,010 head on Wednesday. Compared to the last auction, there was no test on yearling steers, and only test on yearling heifers, which traded $7 higher at 900-950 lbs. Steer and heifer calves traded $5-10 higher. Benchmark steers averaging 714 lbs. sold for $373. — Charles Wallace, WLJ contributing editor
