Wednesday markets
Cattle futures closed lower on mild profit-taking.
“After making new highs for this move, futures are correcting today as the market awaits the negotiated fed cattle trade to get underway,” wrote Cassie Fish, market analyst, for The Beef. “Short-term technical indicators were quite overbought coming into today, so today’s setback is not out of the ordinary and may or may not be the beginning of a more significant sell-off.”
Live cattle futures were lower, with the February contract down $2.10 to $235.15 and the April contract $1.65 lower to close at $237.32.
Cash trade was light, with 262 head sold—not enough for a market trend.
On the formula side, 24,000 head averaging 949 lbs. sold for an average of $368.78.
“Most everyone expects this week’s negotiated fed cattle price to beat last week’s $231.86. But there is much debate around how much higher,” Fish continued. “Packers did purchase 82k head in last week’s negotiated trade, a decent volume. But overall formula numbers are down, and the deficit of market-ready cattle, particularly in Colorado and Texas, is making itself known.”
Today’s slaughter is estimated to be 117,000 head, 2,000 head above the prior week.
Boxed beef prices were slightly higher on 129 loads, with the Choice cutout up 54 cents to $358.53 and the Select cutout 47 cents higher to $357.65.
Feeder cattle
Feeder cattle futures followed live cattle, closing lower. The January contract was down $1.52 to $364.75, and the March contract was $2.42 lower to close at $359.70.
The CME Feeder Cattle Index was 57 cents higher to $369.69.
Corn futures closed higher, with the March and May contracts 2 cents higher to $4.22 and $4.29, respectively.
Colorado: Winter Livestock in La Junta sold 5,908 head on Wednesday. Compared to the last auction, feeder steers sold $3-6 higher, with instances of sharply higher across all weight classes. Feeder heifers sold $8-9 higher, with instances of sharply higher. Benchmark steers averaging 766 lbs. sold for $367-377.75, averaging $372.83.
Montana: Miles City Livestock in Miles City sold 2,423 head on Wednesday. Compared to the last auction, steers over 500 lbs. sold mostly $10-20 higher in a narrow comparison. Heifers sold $10-15 higher on all weight classes in a narrow comparison. Benchmark steers averaging 735 lbs. sold for $396-396.50 and averaged $396.12.
Texas: Lonestar Stockyards in Wildorado sold 1,312 head on Tuesday. Compared to the last auction, feeder steers and heifers traded mostly firm to $2 higher, with instances of up to $10 higher on nicer kinds. Steer and heifer calves traded mostly $20-40 higher. Benchmark steers averaging 758 lbs. sold for $358-373.50 and averaged $370.73.
Utah: Producers Livestock in Salina sold 2,345 head on Tuesday. Compared to the last auction, feeder cattle sold unevenly steady on calves and yearlings. Benchmark steers averaging 724 lbs. sold for $367.50-392.50, averaging $382.67. — Charles Wallace, WLJ contributing editor
