Wednesday markets
Cattle futures were lower as the equities market sold off following news from Federal Reserve Chair Jerome Powel, who discussed uncertainty around fiscal policy in 2025.
Live cattle futures closed lower, with the December contract down 95 cents to $191.30 and the February contract down $1.42 to $188.32.
“The break in CME live cattle futures is accelerating today, prices trading the lowest since a week ago yesterday,” Cassie Fish, market analyst, wrote for The Beef. “The market is under its 10-day moving average with its eye on the 40-day moving average. The most active February contract already touched the 40-day before staging a quick intra-day rally.”
Cash trade was light, with 2,717 head sold. Live steers sold for $194-195.50, and dressed steers sold for $303-305.
On the formula side, 27,600 head averaging 900 lbs. sold for an average of $307.71.
Today’s slaughter is estimated to be 123,000 head, 2,000 head below a week earlier.
Boxed beef prices were lower on 120 loads, with the Choice cutout down 79 cents to $314.84 and the Select cutout down $2.95 to $285.55.
“Boxed beef prices are retreating quickly too, especially the rib which is $51/cwt below last Friday’s price,” Fish said. “With the rug jerked out underneath the rib, the remaining items are struggling to offset the value loss and the choice cutout has retreated about $3 so far. The choice cutout is expected to continue to decline in the coming several days. Packer margins will finish this quarter red.”
Feeder cattle
Feeder cattle futures also lost ground, with the January contract down 47 cents to $257 and the March contract down 90 cents to $257.37. The CME Feeder Cattle Index was up 46 cents to $263.
Corn futures closed sharply lower, with the March and May contracts 6 cents to $4.37 and $4.44, respectively.
Colorado: Winter Livestock in La Junta sold 5,742 head on Tuesday. Compared to the previous auction, feeder steers under 600 lbs. sold $4-9 higher, with instances of sharply higher. Feeder steers over 600 lbs. sold $2-5 lower. Feeder heifers sold unevenly steady across all weight classes. Benchmark steers averaging 730 lbs. sold for $254-273.50, averaging $265.82.
Montana: Miles City Livestock in Miles City sold 1,243 head on Tuesday. Compared to the last auction, steer calves under 450 lbs. sold mostly $15-20 higher, and over 450 lbs. sold mostly steady to $5 higher. Heifer calves sold steady to $5 lower. Yearling steers and heifers were too lightly tested to develop an accurate market trend, but steady to higher undertones were noticed. A group of steers averaging 716 lbs. sold for $245-265, averaging $256.34.
Texas: Lonestar Stockyards in Wildorado sold 1,308 head on Tuesday. Compared to the last auction, all classes of steers and heifers traded mostly $1-5 lower, with larger declines noted on 500-600 lbs. steers. Benchmark steers averaging 761 lbs. sold for $244-247, averaging $245.55. — Charles Wallace, WLJ contributing editor
