Wednesday markets
“It’s day 10 of the sideways CME cattle futures action,” Cassie Fish, market analyst, wrote in The Beef. “Savvy traders’ are eying today’s down with the knowledge of the risk associated with what could be called a bloated net long position by managed funds in all CME livestock futures. Though the data won’t be released until Friday to confirm, yesterday’s rally felt like more funds were piling into futures. Today, without their fuel, futures are faltering.”
Live cattle futures were lower, with the December contract down 10 cents to $188.37 and the February contract down 75 cents to $188.32.
Cash trade was light, with 997 head sold for $190.
On the formula side, 19,900 head averaging 904 lbs. sold for an average of $299.83.
“In the country it is quiet so far, with the USDA reporting only 1.5k head sold for the week,” Fish wrote. “Bullish exuberance is widespread among those in the cattle industry. There are reports of sharply higher feeder cattle prices this week on the heels of a $3 higher cash fed cattle market last week. Cattle feeders are pricing fed cattle higher yet again this week. Another big price up seems unlikely given the calendar and the number of cattle bought with time last week.”
Today’s slaughter is estimated to be 125,000 head, 1,000 head above a week earlier.
Boxed beef prices were mixed on 155 loads, with the Choice cutout down $2.50 to $308.33 and the Select cutout up $2.37 to $277.70.
Feeder cattle
Feeder cattle futures took back yesterday’s gains, with the January contract down $2.35 to $256.95 and the March contract down $1.57 to $255.70. The CME Feeder Cattle Index was up 44 cents to $259.82.
Corn futures closed lower, with the December contract down a penny to $4.22 and the March contract down 2 cents to $4.30.
Colorado: Winter Livestock in La Junta sold 4,050 head on Tuesday. Compared to the last auction, feeder steers sold $5-9 higher, with instances of sharply higher across all weight classes. Feeder heifers sold mostly sharply higher across all weight classes. Benchmark steers averaging 721 lbs. sold for $250-273, averaging $264.79.
Montana: Miles City Livestock in Miles City sold 2,139 head on Tuesday. Compared to the previous auction, steer calves under 500 lbs. sold mostly $5-8 higher in a narrow comparison; steers over 500 lbs. sold steady to $5 higher. Heifers under 450 lbs. sold mostly $10 higher, and over 450 lbs. sold mostly steady to $10 higher. Yearling steers and heifers were too lightly tested to develop any market trend. A group of steers averaging 609 lbs. sold for $296.50-313, averaging $308.92.
Texas: Lonestar Stockyards in Wildorado sold 1,839 head on Tuesday. Compared to the last auction, feeder steers and heifers traded sharply higher compared to the light test from the previous sale two weeks ago. There were not enough comparable sales on steer and heifer calves for a market trend, but advances of $10-20 higher were noted in almost all classes. Benchmark steers averaging 759 lbs. sold for $259.
Wyoming: Winter Livestock in Riverton sold 1,054 head on Tuesday. Compared to the last auction two weeks ago, feeder steers sold mostly steady, with instances of $4-9 higher. The best advancements were on 500 and 600 lbs. steers, with instances of $15-22 higher. Heifer calves sold steady to $2 higher, with instances of $9 higher. — Charles Wallace, WLJ contributing editor
