Wednesday markets
The cattle complex reversed course, with live cattle futures closing higher and feeder futures lower.
Live cattle futures made moderate gains, with the February contract up 37 cents to $197.82 and the April contract up 75 cents to $194.77.
“Futures are grossly oversold following a monster break of nearly $15 bucks in most active April LC,” Cassie Fish, market analyst, wrote for The Beef. “Bulls are crossing their fingers that the worst is over and a spring rally is around the corner. Others are not so sure. The 10-day moving average is now below the 40-day moving average, and for now, futures are holding above their 100-day moving average. Technically, the market is very oversold.”
Cash trade was nonexistent, with only 351 head sold for $200.
On the formula side, 25,100 head averaging 917 lbs. sold for an average of $331.11.
Today’s slaughter is estimated to be 117,000 head, 3,000 head lower than a week earlier.
“Packers are swimming in massive amounts of red ink—well over $100 per head and have been forced to make additional production cuts,” Fish wrote. “Estimates for this week’s slaughter have fallen each day and are now estimated to be smaller than last week’s 561k head. With the exception of one unusually small weekly slaughter in February 2021, February 2025’s slaughters are the smallest since 2016, when there were 10.7M head of cattle on feed, 1M less than today.”
Boxed beef prices were mixed on 121 loads, with the Choice cutout down $1.88 to $313.89 and the Select cutout up 5 cents to $303.76.
Feeder cattle
Feeder cattle futures closed slightly lower, with the March contract down 70 cents to $269.02 and the April contract down 50 cents to $268.60.
The CME Feeder Cattle Index was up 7 cents to $276.30.
Corn futures were lower, with the March contract down 4 cents to $4.97 and the May contract down 3 cents to $5.12.
Montana: Miles City Livestock in Miles City sold 727 head on Tuesday. Feeder cattle were too lightly tested due to the weather, but a higher undertone was noted. Benchmark steers averaging 726 lbs. sold for $293.50-305, averaging $299.24.
Wyoming: Winter Livestock in Riverton sold 727 head on Tuesday. Receipts were light due to the weather, but feeder calves sold unevenly steady. A group of steers averaging 713 lbs. sold for $282-299, averaging $288.28. — Charles Wallace, WLJ contributing editor
