Wednesday markets
Cattle futures closed higher after mixed trade, building on a strong rally supported by equities.
Live cattle futures closed slightly higher, with the April contract up 80 cents to close at $249 and the June contract 12 cents higher to $245.92.
“Following Tuesday’s slightly lower close, the live cattle complex is back to trading mildly higher,” DTN wrote in the Livestock Midday Comments. “The market isn’t currently pressing beyond the resistance at $247.50 in the spot June contract, but traders are seeming to signal and show their support remains ample—all they need is for fundamental support to remain ample as well.”
Cash trade was light, with only 281 head sold.
On the formula side, 23,500 head averaging 955 lbs. sold for an average of $381.06.
DTN reported that asking prices were seen at $250 in Texas, but the rest of the countryside is quiet, with sales expected on Thursday and Friday.
Today’s slaughter is estimated to be 109,000 head, 2,000 head above a week earlier.
Boxed beef prices were lower on 122 loads, with the Choice cutout down $3.08 to $379.66 and the Select cutout $4.06 lower to $382.27.
Feeder cattle
Feeder cattle reversed yesterday’s losses, with the April contract $1.77 higher to $370.55 and the May contract up $1.37 to $368.
The CME Feeder Cattle index was 4 cents higher to $365.59.
Corn futures closed lower, with the May contract down a penny to $4.47 and the July contract 2 cents lower to $4.58.
Texas: Lonestar Stockyards in Wildorado sold 937 head on Tuesday. Compared to the last auction, feeder steers and heifers traded mostly $10-20 higher, except for 900 lbs., which were steady. Steer and heifer calves were sharply higher on a light test. Benchmark steers averaging 709 lbs. sold between $400-402, averaging $401.16.
Utah: Producers Livestock in Salina sold 602 head on Tuesday. Compared to the previous auction, feeder steers sold $1-5 lower, with feeder heifers selling sharply higher on calves and yearlings. Benchmark steers averaging 732 lbs. sold for $375-386, averaging $381.49. — Charles Wallace, WLJ contributing editor
