Wednesday markets
The cattle complex closed higher as traders are cautiously optimistic cash trade will be higher.
Live cattle futures were higher, with the February contract up $1.12 to $198.52 and the April contract up $1.17 to $199.32.
“CME cattle futures are running in place, consolidating and correcting this week after last week’s big run-up,” Cassie Fish, market analyst, wrote for The Beef. “Today, the market is higher but is trading within the week’s range, unable to make new highs.”
Cash trade was moderate, with 7,753 head sold for $201-205.
“There’s been a little movement in Kansas where a handful of live cattle traded for $201, which is mostly steady with last week’s weighted average—but given that only a small sampling has been sold at that price, I don’t believe a trend has been established yet for the week,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments. “Asking prices have surfaced at $202 to $205 for the South but are still not established for the North.”
On the formula side, 24,000 head averaging 919 lbs. sold for an average of $319.97.
Today’s slaughter is estimated to be 124,000 head, 2,000 head above a week earlier.
Boxed beef prices were mixed on 132 loads, with the Choice cutout up $1.16 to $334.14 and the Select cutout down 67 cents to $318.04.
“After starting the week softer, Choice boxes reversed this morning, rallying to a new high for the move at $334.41, the highest ever for January and the highest overall since 2023,” Fish said. “The Select cutout has been on fire and it posted a retracement today but at $317.26 is still record high for any timeframe except during COVID.”
Feeder cattle
Feeder cattle futures also closed higher, with the January contract up $1.12 to $275.22 and the March contract up $1.60 to $269.80.
The CME Feeder Cattle Index was up $1.01 to $278.31.
Corn futures were higher, with the March contract up 4 cents to $4.78 and the May contract up 3 cents to $4.88.
Colorado: Winter Livestock in La Junta sold 5,940 head on Tuesday. Compared to the previous auction, feeder steers sold $2-6 higher, with instances of sharply higher across all weight classes. Feeder heifers sold $6-8 higher, with instances of sharply higher across all weight classes. Benchmark steers averaging 726 lbs. sold for $259-291, averaging $276.45.
Montana: Miles City Livestock in Miles City sold 1,117 head on Tuesday. Compared to the last auction, feeder steers 450-599 lbs. sold sharply higher, with most sales $20-30 higher than last week. All other steers were too lightly tested to develop an accurate market trend, but higher undertones were noted. Feeder heifers under 450 lbs. sold mostly steady to $5 higher. Heifers 450-549 lbs. sold mostly $12-15 higher and over 550 lbs. were too lightly tested to develop an accurate market trend. A group of steers averaging 706 lbs. sold for $300.
Texas: Lonestar Stockyards in Wildorado sold 1,212 head on Tuesday. Compared to the last auction, feeder steers and heifers traded mostly $1-5 higher, with advances of up to $10 higher on 6 weights. Calves too lightly tested for a market trend, but a higher undertone was noted. Benchmark steers averaging 768 lbs. sold for $278.50. — Charles Wallace, WLJ contributing editor
