Wednesday markets
Cattle futures rallied today, closing triple digits higher.
“So, where does all this support come from this morning?” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments. “Good question, because boxed beef prices are lower, there’s yet to be any trade in the fed cash cattle market, and the equity markets aren’t doing anything that would justify trading notably higher. But if there’s one thing we know and understand about the livestock complex, it’s that it is an anticipatory market.”
Live cattle futures closed over $3 higher, with the February contract up $3.25 to $242.35 and the April contract $3.55 higher to close at $240.97.
Cash trade was light, with 297 head sold.
On the formula side, 18,000 head averaging 953 lbs. sold for an average of $383.61.
“No bids have been uttered yet, but historically small slaughter levels have not helped the packer regain any leverage,” Cassie Fish, market analyst, wrote in The Beef. “There appears to be a much tighter supply of formula cattle, especially in regions impacted by the several-month-long closure of the Mexican-U.S. border to crossing feeder cattle. Plus, last week’s negotiated trade volume was just a bit above 62k head. For today, anyway, there seems to be a foregone conclusion that cash will trade higher yet again.”
Today’s slaughter is estimated to be 116,000 head, 3,000 head above a week earlier.
Boxed beef prices were lower on 102 loads, with the Choice cutout $1.63 lower to $365.92 and the Select cutout down 32 cents to $362.58.
Feeder cattle
Feeder cattle futures closed up triple digits, with the March contract $2.67 higher to $367.45 and the April contract up $3.32 to $364.60.
The CME Feeder Cattle Index was 53 higher to $374.36.
Corn futures closed lower, with the March contract down a penny to $4.27 and the May contract down a fraction to $4.36.
Colorado: Winter Livestock in La Junta sold 1,705 head on Wednesday. Compared to the last auction, feeder steers sold unevenly steady across all weight classes. Feeder heifers under 700 lbs. sold mostly sharply lower, and over 700 lbs. sold $6-8 higher. Benchmark steers averaging 712 lbs. sold between $388-393.50, averaging $391.98.
Montana: Miles City Livestock in Miles City sold 961 head on Tuesday. Compared to the previous auction, steers 550-699 lbs. sold mostly $5-10 higher in a narrow comparison. All other steer weights were tested too lightly to develop a full market trend, but steady to higher undertones were noted. Heifers 500-649 lbs. sold mostly steady to $5 higher. Benchmark steers averaging 750 lbs. sold for $396.
Texas: Lonestar Stockyards in Wildorado sold 2,051 head on Tuesday. Compared to the last auction, feeder steers traded $5-10 higher. Feeder heifers traded mostly steady to $2 higher. Benchmark steers averaging 773 lbs. sold between $364-384, averaging $371.67.
Utah: Producers Livestock in Salina sold 820 head on Tuesday. Compared to the previous auction, feeder cattle sold unevenly steady on calves and yearlings. Benchmark steers averaging 785 lbs. sold between $335-355, averaging $348.57. — Charles Wallace, WLJ contributing editor
