Thursday markets
Feeder cattle futures remain on fire, fueling modest gains in live cattle as the broader cattle futures rally pushes to new highs.
Live cattle futures closed higher, with the October contract $1.17 higher to close at $235.02 and the December contract up $1.02 to $239.90.
Cash trade was again light, with 312 head sold. Live steers sold for $230, and dressed steers sold for $358.
On the formula side, 35,900 head averaging 958 lbs. sold for an average of $370.24.
“A single bid of $230 is currently on the table in Nebraska, but still no cash cattle trade has developed as feedlot managers are hoping to hold prices at least steady, and packers are obviously hoping to again work the market lower,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments. “Asking prices are noted at $235 to $237 in the South but are still not established in the North.”
Today’s slaughter is estimated to be 111,000 head, 1,000 head above the prior week.
Boxed beef prices were lower on 137 loads, with the Choice cutout down 94 cents to $365.22 and the Select cutout 91 cents lower to $344.33.
Feeder cattle
Feeder cattle futures gained over $4, with the October contract $4.52 higher to close at $374.02 and the November contract up $5.22 to $374.05.
“Rallying like it doesn’t have a care or a concern in the world, the feeder cattle contracts are pressing onward, pushing an aggressive $3 rally into midday Thursday,” Stewart wrote. “On Wednesday afternoon, the market was pleased to successfully reach new contract highs, which seemed to fuel the market’s ambition this morning as traders have restlessly continued to push it higher and higher.”
The CME Feeder Cattle Index was up $2.04 to $365.51.
Corn futures closed lower, with the December and March contracts down 3 cents to $4.18 and $4.34, respectively.
Kansas: Winter Livestock in Dodge City sold 1,513 head on Wednesday. Compared to the previous auction, steers over 700 lbs. sold $10 higher, while 500-650 lbs. sold steady to $5 higher, and 300-500 lbs. sold $5-15 lower. Heifers over 600 lbs. sold $4-12 higher, while under 600 lbs. sold steady with a soft undertone. Benchmark steers averaging 773 lbs. sold for $362-382, averaging $370.74.
Nebraska: Bassett Livestock in Bassett sold 1,785 head on Wednesday. There was a limited number of comparable offerings, so an accurate trend could not be provided. Benchmark steers averaging 770 lbs. sold for $388.75-397.50 and averaged $390.08.
Oklahoma: OKC West in El Reno sold 5,711 head on Wednesday. Compared to the previous auction, feeder steers and heifers $4-10 higher, with some instances of up to $25 higher on steers. Steer calves sold $4-10 lower, except 500-600 lbs. traded $20 higher. Heifer calves sold unevenly steady. Benchmark steers averaging 782 lbs. sold for $372-380, and averaged $375.30.
South Dakota: Hub City Livestock in Aberdeen sold 3,142 head on Wednesday. Compared to the last auction, yearling steers were not well compared, but the best test was on yearling heifers 950-999 lbs., trading $2-3 lower. Benchmark steers averaging 735 lbs. sold between $381-410 and averaged $386.91. — Charles Wallace, WLJ contributing editor
