Wednesday markets
Cattle futures closed higher despite the lack of direction in the cash trade.
Live cattle futures closed higher, with the February contract up 97 cents to $246 and the April contract $1.17 higher to $240.27.
Cash trade was light, with 169 head sold.
On the formula side, 19,300 head averaging 939 lbs. sold for an average of $394.08.
“Tallying up last week’s negotiated fed cattle buy with the industry’s forward contracts and formulas shows the packer had the strongest inventory position for this week seen in 8 weeks,” Cassie Fish, market analyst, wrote for The Beef. “So perhaps this week’s negotiated fed cattle trade, which made an all-time high last week at $246.91, will be closer to steady for a change, though many cattle feeders are priced higher.”
Today’s slaughter is estimated to be 110,000 head, 3,000 head lower than the prior week.
Boxed beef prices were higher on 99 loads, with the Choice cutout up $1.80 to $379.23 and the Select cutout $1.06 higher to $367.07.
“Boxed beef prices have rallied big time this week, up another $1.92/cwt today, up $15.55 from a week ago,” Fish wrote. “This is a counter-seasonal rally led primarily by the rib, loin and chuck. How much credit does fear of a possible strike at major fed cattle packing plant deserve for the boxed beef rally? It depends on who you ask, but likely some.”
Feeder cattle
Feeder cattle futures also closed higher, with the March contract up $1.20 to $366.30 and the April contract $1.82 higher to $364.02.
The CME Feeder Cattle Index was down 62 cents to $374.79.
Corn futures closed higher, with the March contract up 2 cents to $4.30 and the May contract 3 cents higher to $4.42.
Colorado: Winter Livestock in La Junta sold 1,389 head on Tuesday. Compared to the last auction, feeder steers under 600 lbs. sold $5-6 lower, and those over 600 lbs. sold $5-7 higher, with some sharply higher. Feeder heifers sold mostly $7-8 higher, with instances of sharply higher across all weight classes. Benchmark steers averaging 730 lbs. sold between $388-400, averaging $390.96.
Texas: Lonestar Stockyards in Wildorado sold 769 head on Tuesday. Compared to the last auction, feeder steers and heifers traded mostly steady. There were not enough comparable sales of steer and heifer calves to establish a market trend. Benchmark steers averaging 722 lbs. sold between $391-395, averaging $394.51. — Charles Wallace, WLJ contributing editor
