Wednesday markets
Cattle futures dipped early but rebounded to set new all-time highs, driven by strong cash and beef fundamentals alongside bullish technical momentum.
“With a higher boxed beef market and prospects of a fully steady to likely higher negotiated fed cattle trade this week after making all-time highs last week, futures are following the lead of the powerful underlying physical market,” wrote Cassie Fish, market analyst, for The Beef.
Live cattle futures continued to climb higher, with the August contract up $2.02 to $236.30 and the October contract gaining $2.55 to close at $229.65.
Cash trade was light, with 593 head sold.
On the formula side, 25,800 head averaging 913 lbs. sold for an average of $379.83.
Today’s slaughter is estimated to be 116,000 head, 4,000 head above the prior week.
Boxed beef prices were higher on 83 loads, with the Choice cutout up $4.92 to $374.86 and the Select cutout up $5.42 to $351.36.
“Packers are getting a little relief from record red margins this week thanks to a very brisk wholesale boxed beef market rally,” Fish wrote. “So far, the choice cutout has rallied $12.66/cwt since bottoming last week. The rally is being supported by the seasonal and the sharp production cuts made by packers last week and this week.”
Feeder cattle
Feeder cattle futures also reached new highs, with the August contract gaining $3.97 to $345.02 and the September contract up $4.67 to close at $344.22.
“Today’s big push puts the spot September contract into new territory, as the contract is currently trading at a new contract high at this point, and it’s likely that the market will carry this momentum through the day’s end,” ShayLe Stewart, DTN livestock analyst, wrote in the midday comments.
The CME Feeder Cattle Index was up 21 cents to $336.03.
Corn futures were lower, with the September contract down a penny to $3.79 and the December contract down a fraction to close at $4.01.
Texas: Lonestar Stockyards in Wildorado sold 440 head on Tuesday. There were not enough comparable sales for an accurate comparison, but a higher undertone was noted. A group of steers averaging 758 lbs. sold for $336.
Utah: Producers Livestock in Salina sold 347 head on Tuesday. Compared to the last auction, feeder steers 200-500 lbs. sold $9-20 lower, while 600 lbs. steers sold $2-10 higher and feeder heifers sold sharply higher. A group of steers averaging 664 lbs. sold for $345-365, averaging $348.89. — Charles Wallace, WLJ contributing editor
