Wednesday markets
Cattle futures closed lower on higher corn futures and weaker cash trade.
Live cattle futures closed lower, with the August contract down $1.47 to $223.42 and the October contract down $1.70 to $217.22.
Cash trade was moderate, with 4,450 head sold. Live steers sold for $225, and dressed steers sold from $355-360. On the formula side, 23,400 head averaging 944 lbs. sold for $370.84.
“The negotiated fed cattle trade developed in earnest at $225/cwt across Iowa and Nebraska, all the way to western Nebraska,” wrote Cassie Fish, market analyst, in The Beef. “This is $3/cwt lower than a week ago. More fed cattle are available for sale in the North and cattle feeders are willing sellers. In the South, $225 has been bid and passed.”
Today’s slaughter is estimated to be 106,000 head, the same as last week.
Boxed beef prices were mixed on 87 loads, with the Choice cutout up $3.84 to $394.99 and the Select cutout down $2.12 to $364.17.
“Since Friday, Choice boxes have rallied $20/cwt with the rib up $42/cwt, leading all other primals,” Fish wrote. “The rib quoted at midday today at $645 is trading near last year’s high—and it’s only August.”
Feeder cattle
Feeder cattle futures closed lower, with the August contract down $2.37 to $336.85 and the September contract $4.22 lower to $329.12.
“The feeder cattle contracts are trading lower into Wednesday’s noon hour as well as the market not only desires to trade in alignment with the live cattle contracts, but it’s also not seeing grandiose support in the countryside as feeder cattle prices have been softer in recent weeks,” wrote ShayLe Stewart, DTN livestock analyst, in her midday comments.
The CME Feeder Cattle Index was 88 cents lower to $343.55.
Corn futures closed higher after the Crop Progress Crop Tour revealed yields are lower than USDA estimates. The September contract climbed 9 cents to $4.73, and the December contract rose 10 cents to $4.98.
Texas: Lonestar Stockyards in Wildorado sold 839 head on Tuesday. Compared to the last auction, steer and heifer calves traded mostly $10-15 lower, with some larger discounts noted on unweaned or short-weaned calves tagged fleshy. There were not enough comparable sales on yearlings for a market trend, but a few loads of good feeding-type yearlings were on offer. A group of fleshy benchmark steers averaging 708 lbs. sold for $320.
Utah: Producers Livestock in Salina sold 421 head on Tuesday. A trend was unavailable for feeder steers, and feeder heifers sold unevenly steady. A group of benchmark steers averaging 735 lbs. sold for $336. — Charles Wallace, WLJ contributing editor
