Wednesday markets
It’s no April Fools’ joke—cattle futures have now strung together four consecutive days of higher prices.
Live cattle futures climbed, with the April contract $1.02 higher to close at $244.05 and the June contract up $1.07 to $244.35.
“June and August made contract highs today and are premium to not only last week’s cash fed cattle price but to the highest fed cattle price paid in March,” Cassie Fish, market analyst, wrote in The Beef. “Lots of cattle feeders are uninterested in selling cattle at a discount to futures, pricing cattle around $244, near where April LC is trading or higher.”
Cash trade has yet to develop, with just 131 head sold.
On the formula side, 24,500 head averaging 947 lbs. sold for an average of $375.38.
“Cash cattle markets remain undeveloped; all is quiet in feeding country at midday, with bids and asking prices still not fully established,” DTN wrote in the midday livestock comments. “Significant trade volume will likely be delayed until Thursday and/or Friday.”
Today’s slaughter is estimated to be 108,000 head, 1,000 head above the prior week.
Boxed beef prices fell on 97 loads, with the Choice cutout $1.07 lower to $394.42 and the Select cutout down 34 cents to $392.59.
Feeder cattle
Feeder cattle futures also climbed triple digits, with the April contract up $1.62 to $370.75 and the May contract $1.52 higher to close at $368.
The CME Feeder Cattle Index was 81 cents higher to $365.93.
Corn futures closed lower, with the May and July contracts down 3 cents to $4.54 and $4.54, respectively.
Montana: Miles City Livestock in Miles City sold 937 head on Tuesday. Compared to the last auction, feeder cattle were too lightly tested last week to develop an accurate market trend, but a higher undertone was noted. Benchmark steers averaging 733 lbs. sold for $401.50-424 and averaged $409.41.
Texas: Lonestar Stockyards in Wildorado sold 1,592 head on Tuesday. Compared to the last auction, feeder steers and heifers traded $2-7 higher. Steer and heifer calves were too lightly tested last week for a market trend, but a much higher undertone was noted. Benchmark steers averaging 785 lbs. sold between $365-369, averaging $367.76. — Charles Wallace, WLJ contributing editor
