Wednesday markets
Cattle futures started out of the gate higher and kept the momentum throughout the trading day.
Live cattle futures closed higher, with the April contract up $1.32 to $212.70 and the June contract up $1.82 to $208.10.
“CME cattle futures gapped higher out of the gate this morning, surging to contract highs,” Cassie Fish, market analyst, wrote in The Beef. “The market has been in a steep vertical uptrend chart formation since bottoming April 9, two weeks ago today. Spot April LC has now rallied $15.47/cwt or 7.4% in these past two weeks. April is trading a little more than a buck above last week’s 5-area average price.”
Cash trade was light, with 364 head sold for $213. On the formula side, 25,800 head averaging 899 lbs. sold for an average of $330.87.
“The negotiated fed cattle trade is anticipated to be higher by all cattle feeders this week, and packers are loath to pay up on top of last week’s $4 higher cash cattle market,” Fish wrote. “Packers have slashed slaughter, but have limited other tools in their toolbox. Their margins have worsened this week.”
Today’s slaughter is estimated to be 122,000 head, 1,000 head lower than the prior week.
Boxed beef prices were mixed on 171 loads, with the Choice cutout up 24 cents to $331.97 and the Select cutout down $3.13 to $314.52.
Feeder cattle
Feeder cattle futures closed higher, with the May contract up $1.42 to $288.35 and the August contract up 92 cents to $292.17.
The CME Feeder Cattle Index was down $3.64 to $288.78.
Corn futures closed lower, with the May contract down 3 cents to $4.72 and the July contract down 4 cents to $4.79.
New Mexico: Roswell Livestock in Roswell sold 386 head on Tuesday. Compared to the last auction, feeder steers 650-700 lbs. sold $8 higher. Heifer calves sold $2-5 lower and feeder heifers 600-650 lbs. were steady. A group of steers averaging 719 lbs. sold for $291-305, averaging $298.33.
Texas: Lonestar Stockyards in Wildorado sold 845 head on Tuesday. There were not enough sales for an accurate comparison, but a higher undertone was noted. Benchmark steers averaging 708 lbs. sold for $307.
Utah: Producers Livestock in Salina sold 638 head on Tuesday. Compared to the last auction, feeder steers and heifers sold unevenly steady. Benchmark steers averaging 783 lbs. sold for $275-287, averaging $282.71. — Charles Wallace, WLJ contributing editor
