Wednesday markets
The cattle complex continued its rally as traders cautiously re-entered the market.
“Cattle futures have hit nothing but green lights this week and for now, are attempting to separate themselves from the outside markets, which continue to trade in a more tentative manner,” Cassie Fish, market analyst, wrote in The Beef.
Live cattle futures closed higher, with the April contract up $2.27 to $207.07 and the June contract up $2.27 to $202.07.
Cash trade was light, with 493 head sold. Live steers sold for $208, and dressed steers sold for $328.
On the formula side, 23,400 head averaging 901 lbs. sold for an average of $335.51.
“Green cattle futures have translated to very high hopes for higher cash cattle prices this week,” Fish wrote. “This is a short week with a USDA Cattle-on-Feed report tomorrow afternoon, yet so far, bids have been scarce if not impossible to come by. Cattle feeders are expected to be very tough sellers this week.”
Today’s slaughter is estimated to be 123,000 head, the same as a week earlier.
USDA reported boxed beef prices were delayed as of WLJ press time due to packer submission problems.
ShayLe Stewart, DTN livestock analyst, reported at midday that Choice was down $1.37 ($334.06) and Select was down 45 cents ($314.79).
Feeder cattle
Feeder cattle were buoyed by live cattle closing higher. The April contract was up 57 cents to $290.65, and the May contract was up $1.87 to $284.12.
The CME Feeder Cattle Index was up 91 cents to $288.07.
Corn futures closed higher, with the May contract up 3 cents to $4.84 and the July contract up 2 cents to $4.91.
Nebraska: North Platte Stockyards in North Platte sold 660 head on Tuesday. There were not enough sales for an accurate comparison. A group of steers averaging 799 lbs. sold for $280.
Texas: Lonestar Stockyards in Wildorado sold 1,043 head on Tuesday. There were not enough sales at the previous auction for an accurate comparison, but higher undertones were noted. A group of steers averaging 747 lbs. sold for $280. — Charles Wallace, WLJ contributing editor
