Thursday markets
Cattle futures closed mixed amid record trading volumes in both live and feeder contracts, with tension running high as traders closely watch the market’s next move.
“The Trump/Xi meeting produced little information to move the markets but confirmed a detente in the trade war,” the Cattle Report wrote. “This week’s futures trading has repositioned many and ratcheted downward the price structure and futures expectations for cattle prices. Daily record volumes have been set in both live cattle and feeder cattle contracts.”
Live cattle futures closed higher, with the October contract up $3.87 to close at $235.27, the December contract up 20 cents to $231.10 and the February contract up 5 cents to $229.50.
Cash trade was light, with 2,183 head sold. Live steers sold for $235, and dressed steers sold for $360.
On the formula side, 32,200 head averaging 972 lbs. sold for an average of $378.12.
“Bids are on the table in both Nebraska and Kansas, but following the trade earlier this week, no more business has developed,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments. “Asking prices are noted in the South at $238 to $240. Earlier this week, Northern dressed cattle sold for $360, which is $9 lower than the previous week’s weighted average.”
Today’s slaughter is estimated to be 114,000 head, 5,000 head below the prior week.
USDA’s Comprehensive Fed Cattle Weekly report showed carcass weights at 947.6 lbs., 1 lb. over the prior week. The quality grade was up 1% from the previous week to 84.2%.
Boxed beef prices were lower on 102 loads, with the Choice cutout $3.11 lower to $378.27 and the Select cutout $2.27 lower to $359.52.
Feeder cattle
Feeder cattle futures closed mixed, with the October contract 60 cents lower to close at $347.27, the November contract down 25 cents to $341.82 and the January contract up 20 cents to $334.22.
The CME Feeder Cattle Index was $3.63 lower to $356.62.
Corn futures were lower, with the December and March contracts down 3 cents to $4.30 and $4.43, respectively.
Kansas: Winter Livestock in Dodge City sold 1,299 head on Wednesday. Compared to the last auction, there were not enough steers and heifers over 700 lbs. for a market test. Larger lots of reputation, vaccinated steers and heifers under 700 lbs. sold steady to weak, while smaller lots sold sharply lower. Benchmark steers averaging 777 lbs. sold for $335-355 and averaged $347.41.
Nebraska: Huss Livestock in Kearney sold 1,897 head on Wednesday. Compared to the last auction, steer calves 500-700 lbs. sold $40-50 lower and heifer calves under 600 lbs. sold $10-40 lower. Eight weight yearling steers sold steady to $15 lower. A load of steers averaging 809 lbs. sold for $342-367.50, and averaged $351.77.
New Mexico: Clovis Livestock in Clovis sold 3,085 head on 3,085 head on Wednesday. Compared to the last auction, feeder steers and heifers sold $20-50 lower. Benchmark steers averaging 719 lbs. sold for $320-335 and averaged $327.86.
Oklahoma: OKC West in El Reno sold 4,056 head on Wednesday. Compared to the last auction, feeder steers sold $20-30 lower. Feeder heifers sold $15-25 lower. Steer calves sold $30-40 lower and heifer calves traded $40-50 lower. Benchmark steers averaging 728 lbs. sold for $350-359.50 and averaged $359.05. — Charles Wallace, WLJ contributing editor
