Wednesday markets
Cattle futures paused midweek, as traders are looking for fundamental support.
“It’s a mid-week pause for CME cattle futures today,” wrote Cassie Fish, market analyst, in The Beef. “Unsubstantiated rumors about imminent definitive plans to reopen the Mexican-U.S. border to feeder cattle imports made the rounds this morning—though generally it is already anticipated the border will reopen in some fashion this year, if not by midsummer. Feeder cattle futures have sold off more sharply as the gossip makes the rounds.”
Live cattle futures closed mixed, with the April contract up 5 cents to $252.60 and the June contract 35 cents lower to close at $251.07.
Cash trade was light, with 1,857 head sold.
On the formula side, 21,200 head averaging 940 lbs. sold for an average of $391.52.
Today’s slaughter is estimated to be 109,000 head, the same as the previous week.
Boxed beef prices were lower on 106 loads, with the Choice and Select cutouts $1.22 lower to $381.98 and $378.58, respectively.
Feeder cattle
Feeder cattle futures were triple-digits lower, with the April contract down $2.37 to $373.50 and the May contract $3.90 lower to $370.95.
The CME Feeder Cattle Index was $1.08 higher to $375.02.
Corn futures closed higher, with the May and July contracts up 8 cents to $4.51 and $4.60, respectively.
Nebraska: Gordon Livestock in Gordon sold 1,205 head on Tuesday. An accurate trend could not be provided due to a lack of a recent auction. Benchmark steers averaging 775 lbs. sold for $389-400.50, averaging $393.77.
New Mexico: Roswell Livestock in Roswell sold 1,243 head on Tuesday. Compared to the previous auction, steer calves 300-500 lbs. had no comparable sales, but a higher market was noted, and 500-600 lbs. sold $5-8 lower. Feeder steers 600-750 lbs. sold $15–22 higher. Heifer calves 400-500 lbs. were $5-7 higher, and 500-600 lbs. sold sharply higher. Benchmark steers averaging 705 lbs. sold for $397-405, averaging $398.04.
Texas: Lonestar Stockyards in Wildorado sold 1,121 head on Tuesday. Compared to the last auction, feeder heifers weighing between 500-700 lbs. traded $15-20 higher. There were not enough comparable sales in other classes to establish a market trend. Benchmark steers averaging 754 lbs. sold for $393. — Charles Wallace, WLJ contributing editor
