Wednesday markets
“Traders have seemed to press the pause button on the market’s rally as they’re wanting to see what pans out fundamentally this week,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments.
Live cattle futures were lower, with the February contract down 67 cents to $198.82 and the April contract down $1.10 to $194.62.
Cash trade has yet to develop, with only 534 head sold—insufficient for a market trend.
On the formula side, 23,800 head averaging 905 lbs. sold for an average of $321.91.
“Boxed beef demand has improved, and prices have trended mostly higher this week—but while there is the belief that cash prices could trade steady/somewhat higher this week, you can’t count your eggs before they hatch,” Stewart wrote. “Traders seem keenly aware of this right now.”
Today’s slaughter is estimated to be 122,000 head, 5,000 head above a week earlier.
Boxed beef prices were lower on 158 loads, with the Choice cutout down $1.42 to $312.90 and the Select cutout down 89 cents to $303.24.
Feeder cattle
Feeder cattle closed on both sides of sideways, with the March contract up 15 cents to $274.37 and the April contract down 27 cents to $273.52.
The CME Feeder Cattle Index was up 53 cents to $279.37.
Corn futures were slightly lower, with the March contract down a penny to $4.78 and the May contract down a fraction to $4.93.
Colorado: Winter Livestock in La Junta sold 1,151 head on Tuesday. Compared to the last auction, feeder steers sold $5-8 higher, with instances of sharply higher across all weight classes. Feeder heifers sold mostly $2-3 higher, with instances of sharply higher across all weight classes. Benchmark steers averaging 715 lbs. sold for $261-299, averaging $291.25.
Montana: Miles City Livestock in Miles City sold 860 head on Tuesday. Compared to the last auction, feeder steers 550-599 lbs. sold steady. All other weights of steers were too lightly tested to develop an accurate market trend, but unevenly steady undertones were noticed. Heifer calves were all too lightly tested either this week or last to develop an accurate market trend, but steady undertones were noticed. A group of steers averaging 676 lbs. sold for $311-315, averaging $311.30.
Texas: Lonestar Stockyards in Wildorado sold 883 head on Tuesday. There were not enough comparable sales for an accurate comparison, but a higher undertone was noted. A group of steers averaging 773 lbs. sold for $267-269, averaging $268.28. — Charles Wallace, WLJ contributing editor
