Wednesday markets
Choice boxed beef prices rebounded higher, but the cattle complex closed mixed. Some cash trade developed lower than last week’s average in the North.
Live cattle closed mixed, with the December contract up 37 cents to $151.92 and the February contract down 7 cents to $153.55.
“The live cattle complex is meekly trying to trade higher, but at this point, the market’s success is limited,” ShayLe Stewart, DTN livestock analyst, wrote in the midday comments. “The spot February contract crashed lower Tuesday afternoon to the point where the market closed below its 100-day moving average. One would hope that the market would be able to find some technical support, but in order for traders to keep the technical price elevated, they’ll need to see something positive from the market’s fundamentals.”
Cash trade has started to develop, with 14,267 head selling between $153-156, averaging $155.20. Dressed steers averaged $246.99.
This afternoon, scattered dressed trade is being reported in parts of the North, at mostly $247, $2 lower than last week’s weighted averages. In Nebraska, live cash trade has been slow on light to moderate demand, with live purchases $1 lower compared to the previous week at $156.
On the formula side, 19,700 head averaging 874 lbs. sold for an average of $252.55.
Slaughter for today is expected to be 127,000 head, 1,000 head below last week.
Boxed beef prices have rebounded on 174 loads, with the Choice cutout up $6.31 to $248.96 and the Select cutout up 63 cents to $219.77.
“Welcome to the world of the volatile holiday rib! USDA estimated boxed beef cutout values are gyrating wildly thanks mostly to the typical swings of the holiday rib market,” Cassie Fish, market analyst for The Beef, wrote. “Yesterday, the rib primal closed at $479/cwt. Today it printed at $544/cwt!”
Feeder cattle
Feeder cattle closed lower, with the January and March contracts down 90 cents to $180.90 and $183.25, respectively. The CME Feeder Cattle Index was up 49 cents to $179.02.
Corn closed modestly higher, with the December contract up 2 cents to $6.27 and the March contract up 4 cents to $6.41.
Colorado: Winter Livestock in La Junta sold 7,060 head Tuesday. Compared to the last auction, steer calves under 600 lbs. sold $5-8 higher, and over 600 lbs. were $2-3 higher. Heifer calves under 550 lbs. sold mostly steady, and over 550 lbs. were $3-5 higher. Yearling feeder steers were steady, and yearling feeder heifers sold steady to $1 higher. Benchmark steers averaging 726 lbs. sold between $175-184.50 and averaged $181.31.
Montana: Miles City Livestock Commission Auction in Miles City sold 2,325 head Tuesday. Compared to the last auction, weaned feeder steers under 550 lbs. sold $4 lower, and over 550 lbs. were $1 higher. Weaned heifers sold mostly $7-9 lower on a light test. A group of steers averaging 670 lbs. sold for $194.50.
Texas: Lonestar Stockyards in Wildorado sold 1,273 head Tuesday. Compared to the previous auction, feeder steers and heifers traded mostly weak to $4 lower on comparable sales. Steer and heifer calves traded mostly steady to $4 higher. Benchmark steers averaging 775 lbs. sold between $171-173 and averaged $171.37.
Wyoming: Winter Livestock Auction in Riverton sold 1,010 head Tuesday. There were not enough sales for a market test. A group of steers averaging 663 lbs. sold between $173-181.25, averaging $176.78. — Charles Wallace, WLJ editor
