Wednesday markets
Cattle futures closed up triple digits on higher cash trade.
Live cattle futures closed higher, with the August contract up $2.22 to $234.17 and the October contract $1.57 higher to $229.47.
“Most active October LC has now rallied $13.37 in eight trading days,” Cassie Fish, market analyst, wrote in The Beef. “Another $3.20 and October will have completed a 50% retracement of the June high to July low break. October is approaching its 40-day moving average of $231.20 which it has not traded above since July 1. A close above the 40-day will likely generate some additional technical buying.”
Cash trade was active, with 25,581 head sold. Live steers sold for $235-236, and dressed steers sold for $370-380. On the formula side, 26,500 head averaging 941 lbs. sold for an average of $369.84.
“The cash cattle market is beginning to see some action develop as trade has been noted this morning in Nebraska at mostly $370, which is $2-3 higher than last week’s weighted average, but there have been a few traded at $371 as well,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments. “Bids of $230-235 are currently on the table in the Southern Plains, but asking prices in that region are firm at $235.”
Today’s slaughter is estimated to be 106,000 head, 1,000 head below last week.
Boxed beef prices were mixed on 109 loads, with the Choice cutout down $1.68 to $367.97 and the Select cutout up $1.56 to $348.06.
Feeder cattle
Feeder cattle futures also closed higher, with the August contract up $2.12 to $353.32 and the September contract $2.22 higher to $348.37.
The CME Feeder Cattle Index was up $2.24 to $349.13.
Corn futures closed lower, with the September and December contracts down 5 cents to $4.36 and $4.60, respectively.
Texas: Lonestar Stockyards in Wildorado sold 822 head on Tuesday. Compared to the last auction, feeder steers and heifers traded mostly steady on limited comparable sales. Not enough comparable sales on steer or heifer calves for a market trend. Benchmark steers averaging 754 lbs. sold for $359. — Charles Wallace, WLJ contributing editor
