Wednesday markets
Cattle futures continued to climb due to higher cash trade.
Live cattle futures continued to climb, with the December contract up $2.40 to $192.25 and the February contract up $2.35 to $191.37.
“It’s been an eye-opening morning for the live cattle complex as traders have pushed the nearby contracts to resistance levels and showing their support of the market’s desire to continue to grind higher,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments. “With the support of the cash cattle market mixed with the industry’s impeccable beef demand — traders haven’t shown market nervousness throughout the day as they continue to advance the futures complex.”
Cash trade was moderate, with 5,924 head sold. Live steers sold for $192-195, and dressed steers sold for $298-300.
On the formula side, 23,600 head averaging 913 lbs. sold for an average of $305.43.
“The negotiated fed cattle market is higher by $1-2/cwt live and $3/cwt dressed in the North this morning, trading at $193/cwt live and $300/cwt dressed,” Cassie Fish, market analyst, wrote in The Beef. “Cattle feeders remain in the driver’s seat as packers attempt to secure needed fed cattle inventory. Last week’s 75k head purchase obviously fell short of ‘enough’ and packers have been out, uncharacteristically, since Monday buying cattle to harvest prior to Christmas.”
Today’s slaughter is estimated to be 125,000 head, the same as a week prior.
Boxed beef prices were lower on 122 loads, with the Choice cutout down 50 cents to $311.23 and the Select cutout down $1.54 to $278.11.
Feeder cattle
Feeder cattle futures closed triple digits higher, with the January contract up $1.72 to $259.05 and the March contract up $1.92 to $259.37. The CME Feeder Cattle Index was down 16 cents to $261.46.
“The hang-up in this market seems to be trader buy-in, as it’s somewhat unnerving to think that the market needs to go higher when prices are already trading at historical levels,” Stewart wrote. “But hey, what’s a bull market without a little disbelief that prices could continue to trade even higher?”
Corn futures were mixed, with nearby contracts down and others higher. The December contract was down 2 cents to $4.38 and the March contract was down a fraction to $4.48. Deferred contracts were higher by a fraction to 2 cents.
Colorado: Winter Livestock in La Junta sold 6,927 head on Tuesday. Compared to the previous auction, feeder steers under 500 lbs. sold mostly $5-9 higher. Feeder steers between 500-600 lbs. sold $4-10 lower, while steers over 600 lbs. sold mostly $7-10 higher, with instances of sharply higher. Feeder heifers under 550 lbs. sold $2-10 lower with instances of sharply lower. Feeder heifers over 550 lbs. sold mostly $2-8 higher with instances of sharply higher. Benchmark steers averaging 727 lbs. sold for $253-276, averaging $269.08.
Montana: Miles City Livestock in Miles City sold 2,021 head on Tuesday. Compared to the previous auction, steers over 450 lbs. sold steady to $5 higher. Heifers over 450 lbs. sold
mostly $10-15 higher. A group of unweaned steers averaging 655 lbs. sold for $287.50-296, averaging $295.74.
Texas: Lonestar Stockyards in Wildorado sold 1,253 head on Tuesday. Compared to the last auction, steer and heifer calves traded mostly $2-10 higher, with instances of $20 higher on 550-600 lbs. Yearlings were too lightly tested for a market trend. A group of steers averaging 727 lbs. sold for $246-250, averaging $247.56. — Charles Wallace, WLJ contributing editor
