Wednesday markets
Live and feeder cattle futures rallied again today, driven by perceived bargain hunting and news of another New World screwworm detection roughly 120 miles south of the Texas border.
ShayLe Stewart, DTN livestock analyst, wrote that Texas Agriculture Commissioner Sid Miller announced that another case of New World screwworm was detected in Montemorelos, Nuevo León—about 120 miles south of the Texas border—raising concerns that the border may remain closed longer than previously expected.
Live cattle futures closed higher, with the December contract gaining 47 cents to $218.95 and the February contract $1.10 higher to close at $221.90.
Cash trade was light, with only 56 head sold.
On the formula side, 28,400 head averaging 9476 lbs. sold for an average of $351.57.
“Still no cash cattle trade has developed, but asking prices are noted in the South at $225, and are still not established in the North,” Stewart wrote.
Today’s slaughter is estimated to be 117,000 head, 7,000 head below a week earlier.
Boxed beef prices were mixed on 140 loads, with the Choice cutout 91 cents lower to $363.81 and the Select cutout $2.34 higher to $353.12.
Feeder cattle
Feeder cattle futures gained triple digits, with the January contract up $1.97 to $331.85 and the March contract $1.87 higher to close at $325.80.
“It was rather impressive to note some of the sales made Tuesday afternoon at sale barns across the country, as some were trading $20 to $30 higher, with instances as much as $50 higher than the week before,” Stewart wrote. “That obviously showed up in the CME feeder cattle index as well, which jumped $12.66 to $332.36.”
The CME Feeder Cattle Index was up $12.66 to $332.36.
Corn futures were lower, with the December and March contracts 6 cents lower to $4.31 and $4.43, respectively.
Colorado: Winter Livestock in La Junta sold 1,453 head on Tuesday. Compared to the last auction, feeder steers sold $2-5 higher, with instances of sharply higher prices across all weight classes. Feeder heifers sold sharply higher across all weight classes. Benchmark steers averaging 735 lbs. sold for $325-340 and averaged $334.58.
Montana: Miles City Livestock in Miles City sold 1,070 head on Tuesday. Compared to the previous auction, feeder steers 500-700 lbs. traded $30-45 higher. Feeder heifers 500-700 lbs. sold mostly $40 higher, with some strong sets of F1 Baldys setting the price. Benchmark steers averaging 715 lbs. sold for $350.
Texas: Lonestar Stockyards in Wildorado sold 1,398 head on Tuesday. Compared to the previous auction, Feeder steers between 600-700 lbs. traded mostly $20 higher. There were not enough comparable sales of feeder heifers or heavier-weight steers to establish a market trend, but a higher undertone was noted. Steer calves traded mostly $20 higher, and heifers traded sharply higher with the largest advances on 500-600 lbs. heifers. Benchmark steers averaging 771 lbs. sold for $336.75. — Charles Wallace, WLJ contributing editor
