Wednesday markets
The cattle complex bounced back after two days of losses.
“After having the proverbial tar kicked out of it already this short week, CME cattle futures are putting on a show with an impressive short-term technical bounce today,” Cassie Fish, market analyst, wrote for The Beef. “Today’s rally isn’t big enough to definitively indicate a market bottom. But the action has drawn a couple of big lines in the sand with Monday’s high and Tuesday’s low now each critical directional technical points.”
Live cattle futures were higher, with the February contract up $1.72 to $203.60 and the April contract up $2.65 to $201.30.
Cash trade was moderate, with 6,606 head sold. Live steers sold for $207-209, and dressed steers sold between $328-328.50.
On the formula side, 28,100 head averaging 907 lbs. sold for an average of $327.63.
The national weekly direct beef type price distribution for the week of Jan. 27 to Feb. 3 was the following on a live basis:
• Negotiated purchases: $209.41.
• Formula net purchases: $205.99.
• Forward contract net purchases: $193.74.
• Negotiated grid net purchases: $204.99.
On a dressed basis:
• Negotiated purchases: $329.39.
• Formula net purchases: $325.87.
• Forward contract net purchases: $303.12.
• Negotiated grid net purchases: $325.30.
Today’s slaughter is estimated to be 121,000 head, 3,000 head below a week earlier.
Boxed beef closed lower on 161 loads, with the Choice cutout down $5.39 to $325.34 and the Select cutout down $3.08 to $314.33.
Feeder cattle
Feeder cattle futures were higher, with the January contract up $2.47 to $220.72 and the March contract up $2.85 to $270.47.
The CME Feeder Cattle Index was down $1.18 to $279.45.
Corn futures were mixed. The March contract was down a penny to $4.93, and the May contract remained unchanged, closing at $5.04.
Colorado: Winter Livestock in La Junta sold 2,027 head on Tuesday. Compared to the last auction, feeder steers sold mostly $3-5 lower, with instances of sharply lower across all weight classes. Feeder heifers sold $2-5 lower, with instances of sharply lower across all weight classes. Benchmark steers averaging 785 lbs. sold for $263-275, averaging $267.38.
Texas: Lonestar Stockyards in Wildorado sold 1,631 head on Tuesday. Compared to the last auction, feeder steers and heifers traded mostly $5-8 lower. There were not enough comparable sales on steer and heifer calves for a market trend, but a sharply lower undertone was noted. Benchmark steers averaging 787 lbs. sold for $261.50-262.50, averaging $262.25.
Wyoming: Winter Livestock in Riverton sold 2,647 head on Tuesday. Compared to the previous auction, feeder calves and yearlings had no comparison available due to light offering last 2-3 weeks, but prevailing markets higher overtones noted. Benchmark steers averaging 720 lbs. sold for $282-283.50, averaging $283.26. — Charles Wallace, WLJ contributing editor
