Wednesday markets
Traders are continuing to pull back in cattle futures as they look for stronger support from the fed cash market.
“With some choppiness in boxed beef prices and still no sizeable trade volume in the cash market, it comes as no real surprise to see the futures trading lower,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments.
Live cattle futures closed lower, with the April contract down 57 cents to $246.85 and the June contract 47 cents lower to $243.07.
Cash trade was moderate, with 5,635 head sold. Live steers sold for $246, and dressed steers sold for $386.
“There are bids surfacing in the cash market, but there is yet to be any sizeable trade,” Stewart wrote. “Asking prices are noted at $388 in Nebraska, but otherwise, no other asking prices are reported. Trade could begin to develop later Wednesday afternoon, but it’s more likely trade will be delayed until Thursday or Friday.”
Today’s slaughter is estimated to be 111,000 head, 2,000 head lower than last week.
Boxed beef prices were lower on 117 loads, with the Choice cutout down $1.99 to $384.19 and the Select cutout $3.87 lower to $383.33.
Feeder cattle
Feeder cattle closed mixed, with the April contract 22 cents higher to $366.80 and the May contract down 12 cents to $358.42.
The CME Feeder Cattle Index was $1.32 lower to $374.37.
Corn futures closed up a fraction, with the May and July contracts at $4.54 and $4.62, respectively.
Texas: Lonestar Stockyards in Wildorado sold 1,387 head on Tuesday. Compared to the last auction, Feeder steers traded mostly $10-14 lower. Feeder heifers were mostly weak to $4 lower, with the exception of 600 lbs. heifers, which traded $5-10 higher. Benchmark steers averaging 721 lbs. sold for $378-383 and averaged $380.88.
Utah: Producers Livestock in Salina sold 648 head on Tuesday. Compared to the last auction, feeder steers sold unevenly steady, with feeder heifers 200-550 lbs. steady and 550 lbs. and heavier selling sharply lower. A group of steers averaging 709 lbs. sold for $345-364, averaging $356.95. — Charles Wallace, WLJ contributing editor
