Wednesday markets
Cattle futures surged higher as strong cash and beef market fundamentals fueled bullish momentum across the complex.
Live cattle futures climbed triple digits, with the August contract up $2.20 to $238.52 and the October contract gained $3.50 to close at $234.85.
“The contracts have shot wildly higher, breaking through the market’s previous resistance, and seem to point to the fundamental support of the boxed beef sector and the hope that fed cash cattle prices will trade higher this week,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments. “At this point, there’s been no trade in the cash cattle complex, but it is assumed prices will steady to somewhat higher again this week. Asking prices are noted in the South at $240 but are still not established in the North.”
Cash trade was active, with 16,889 head sold. Live steers sold for $245, and dressed steers sold between $380-392.
On the formula side, 29,600 head averaging 902 lbs. sold for an average of $376.79.
Today’s slaughter is estimated to be 118,000 head, 2,000 head above a week earlier.
Boxed beef prices were mixed on 102 loads, with the Choice cutout down $1.35 to $405.85 and the Select cutout up $3.40 to $383.16.
The Cattle on Feed pre-report estimates show that feedlots with 1,000 head or greater will be 98.1% for cattle on feed in August. Placements in July are estimated to be 91.2%, and marketings for July are predicted at 94.1%.
Feeder cattle
Feeder cattle futures surged over $5, with the August contract up $5.22 to close at $355.77 and the September contract climbed $5.67 to $358.10.
The CME Feeder Cattle Index was up $2.81 to $344.98.
Corn futures closed slightly higher, with the September and December contracts up a fraction of a cent to $3.80 and $4.04, respectively.
Montana: Miles City Livestock in Miles City sold 618 head on Tuesday. Feeder steers and heifers were both too lightly tested to develop an accurate market trend, but higher undertones were noted on all offerings. Benchmark steers averaging 733 lbs. sold for $394-397.50, averaging $394.13.
Texas: Lonestar Stockyards in Wildorado sold 1,910 head on Tuesday. Compared to the last auction, feeder steers and heifers traded mostly steady to $4 higher. There were not enough comparable sales of steer or heifer calves to establish a market trend. Benchmark steers averaging 776 lbs. sold between $359-367, averaging $359.97. — Charles Wallace, WLJ contributing editor
