Wednesday markets
Cattle futures closed mostly higher on optimism that support may emerge later this week.
“Traders are simply ‘working with what they’ve got’ as they desire to push the complex higher but can only do so in a cautious manner as they’re nearing the market’s 100-day moving average, which at this point remains too much of a resistance plane to tackle,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments.
Live cattle futures closed mixed, with the December contract 2 cents lower to $226.80 and the February contract $1.57 higher to close at $228.52.
Cash trade was light, with just 393 head sold—not enough for a market trend.
“A single bid has surfaced in the fed cash cattle market at $222 live in Nebraska,” Stewart wrote. “So far, it’s being passed, and no other business has developed. Asking prices are still unknown at this point.”
On the formula side, 23,300 head averaging 940 lbs. sold for an average of $351.34.
Today’s slaughter is estimated to be 123,000 head, 6,000 head above the prior week.
Boxed beef prices were lower on 152 loads, with the Choice cutout $1.52 lower to $359.36 and the Select cutout down $3.15 to $344.88.
Feeder cattle
Feeder cattle futures gained over $2, with the January contract $2.87 higher to $338.37 and the March contract up $2.67 to close at $332.82.
The CME Feeder Cattle Index was $1.44 higher to $344.50.
Corn futures were lower, with the December contract 6 cents lower to $4.34 and the March contract down 3 cents to close at $4.44.
Montana: Miles City Livestock in Miles City sold 949 head on Tuesday. Compared to the previous auction, steer calves under 550 lbs. were too lightly tested to develop an accurate market trend, but higher undertones were noted. Steer calves over 550 lbs. sold steady to $10 higher in a narrow comparison. Heifer calves under 450 lbs. were too lightly tested to develop an accurate market trend, but higher undertones were noted. Heifers 450-649 lbs. sold mostly $3-5 higher in a narrow comparison. Heifers over 650 lbs. were too lightly tested to develop any market trend. A group of unweaned steers averaging 709 lbs. sold for $380-381, averaging $380.61.
Texas: Lonestar Stockyards in Wildorado sold 1,171 head on Tuesday. Compared to the last auction, feeder steers traded mostly $5-7 higher. Feeder heifers traded up to $20 higher on limited comparable sales. Steer and heifer calves traded sharply higher on a light test.
Utah: Producers Livestock in Salina sold 1,320 head on Tuesday. Compared to the last auction, feeder cattle sold sharply higher on calves and yearlings. Benchmark steers averaging 758 lbs. sold for $326-353.25, averaging $346.86. — Charles Wallace, WLJ contributing editor
