Wednesday markets
Cattle futures drifted lower in holiday-thinned, directionless trade as traders searched for stronger demand signals.
“CME cattle futures are truly in holiday mode, trading both sides of steady multiple times today in directionless action,” wrote Cassie Fish, market analyst, in The Beef. “There is a growing attitude that any remaining upside in cattle futures will have to wait. After all, the market is overbought technically and new bullish news is lacking.”
Live cattle futures closed lower, with the December contract down 85 cents to close at $230.72 and the February contract lost $1.15 to $229.52.
“Are you seeing the trend in the market right now?” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments. “One day the market rallies and trades higher, but then on the next day, it steps lower as traders don’t believe that either they possess enough support or that it’s the right time to challenge the market’s resistance. Either way, the complex is trading merely steady, holding a position just below the 100-day moving average.”
Cash trade was again light, with 171 head sold—not enough for a market trend.
On the formula side, 22,400 head averaging 933 lbs. sold for an average of $360.40.
Today’s slaughter is estimated to be 118,000 head, 5,000 head lower than the previous week.
Boxed beef prices were lower on 170 loads, with the Choice cutout at $2.79 to $356.09 and the Select cutout at $2.67 lower at $346.43.
Feeder cattle
Feeder cattle futures were also lower, with the January contract $1.80 lower to $342.15 and the March contract down $1.27 to close at $336.32.
The CME Feeder Cattle Index was $1.48 higher to $348.85.
Corn futures were higher, with the March contract up 4 cents to $4.41 and the May contract 3 cents higher to $4.48.
Colorado: Winter Livestock in La Junta sold 4,282 head on Tuesday. Compared to the last auction, feeder steers sold $3-6 higher, with some instances of sharply higher prices. Feeder heifers under 550 lbs. sold sharply higher, while heifers over 550 lbs. sold unevenly steady, with instances of sharply higher. Benchmark steers averaging 774 lbs. sold for $335-343.50 and averaged $338.50.
Texas: Lonestar Stockyards in Wildorado sold 706 head on Tuesday. Compared to the previous auction, Feeder steers and heifers traded mostly $1-5 higher. A group of steers averaging 825 lbs. sold for $340.50.
Utah: Producers Livestock in Salina sold 984 head on Tuesday. Compared to the previous auction, feeder steers sold sharply higher on calves and yearlings, with heifers selling unevenly steady. Benchmark steers averaging 783 lbs. sold for $340-367.50 and averaged $355.67. — Charles Wallace, WLJ contributing editor
