Wednesday markets
The historic cattle bull market pushed higher again, opening strong and closing in the green despite easing from daily highs.
“The rally seems to be mostly fueled by the growing realization of just how short feeder cattle supplies are, with the loss of access to Mexico, and how short fed cattle supplies will be as a result,” wrote Cassie Fish, market analyst, in The Beef. “No one expected the border to remain closed this long and there seems to be little clarity at present regarding when it might reopen. Futures markets have responded this week by attempting to price that short supply.”
Live cattle futures closed higher, with the August contract 75 cents higher to close at $243.25 and the October contract climbing $1.32 to $239.52.
Cash trade was light, with 1,027 head selling between $242-245.
On the formula side, 19,600 head averaging 929 lbs. sold for an average of $381.19.
Today’s slaughter is estimated to be 119,000 head, 1,000 head above the prior week.
“Packers have added slaughter this week and production could top 560k head,” Fish wrote. “Boxed beef values are sharply higher than a week ago, even though they may have put in a short-term top yesterday as they printed a couple of bucks lower at midday.
Boxed beef prices were lower on 104 loads, with the Choice cutout down $1.33 to $411.84 and the Select cutout $3.05 lower to $387.71.
Feeder cattle
Feeder cattle futures also finished in the green, with the August contract $2.22 higher to 365.45 and the September contract 35 cents higher to close at $365.40.
The CME Feeder Cattle Index was up $8.99 to $359.17.
Corn futures closed lower, with the September contract down 5 cents to $3.82 and the December contract lost 3 cents to close at $4.06.
New Mexico: Roswell Livestock in Roswell sold 1,107 head on Tuesday. Compared to the last auction, steer calves 350-600 lbs. sold $8-18 higher, and heifer calves 300-400 lbs. sold $5-15 higher. Feeder steer and heifer yearlings had insufficient numbers to compare, but a higher trend was noted. A group of steers averaging 736 lbs. sold for $357-370, averaging $362.58.
Utah: Producers Livestock in Salina sold 587 head on Wednesday. Compared to the previous auction, feeder cattle sold sharply higher on good-quality calves and yearlings. A group of steers averaging 763 lbs. sold for $315-334.50, averaging $329.19. — Charles Wallace, WLJ contributing editor
