Wednesday markets
The livestock complex closed higher as traders continued to support the market, even as no cash cattle trade developed.
Live cattle futures closed slightly higher, with the February contract up 72 cents to $233.10 and the April contract 37 cents higher to close at $234.95.
“Currently, traders can allow the contracts to climb slightly higher without fears of immediate resistance pressure following last week’s sharp decline,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments. “But at the same time, traders don’t feel pressure to trade the contracts sharply higher as no cash cattle trade has developed yet. There is currently a single big on the table in Kansas at $233, but as of this point, no business has developed and asking prices remain elusive.”
Cash trade was light, with 315 head sold for $363.
On the formula side, 23,100 head averaging 947 lbs. sold for an average of $369.90.
Cash trade for the week ending Jan. 18 was 73,083 head. Live steers averaged $232.48, and dressed steers averaged $365.
Today’s slaughter is estimated to be 114,000 head, 3,000 head lower than the previous week.
Boxed beef prices were higher on 138 loads, with the Choice cutout $1.35 higher to $366.11 and the Select cutout up $2.61 to $362.45.
“Packers know another cutout break is coming in February, which is only days away,” wrote Cassie Fish, market analyst for The Beef. “Packers have sliced production levels this week, the week-to-date total of 219k head down 16k from just a week ago. Packer margins remain historically red for any January in history.”
Feeder cattle
Feeder cattle also closed higher, with the January contract up 60 cents to $363.22 and the March contract $1.70 higher to $359.37.
The CME Feeder Cattle Index was 27 cents lower to $367.41.
Corn futures closed lower, with the March contract down 2 cents to $4.21 and the May contract down a penny to $4.29.
Colorado: Winter Livestock in La Junta sold 5,725 head on Wednesday. Compared to the last auction, feeder steers under 550 lbs. sold steady, while steers over 550 lbs. sold mostly $1-3 lower. Feeder heifers sold unevenly steady across all weight classes. Benchmark steers averaging 714 lbs. sold between $375-392 and averaged $384.72.
Montana: Miles City Livestock in Miles City sold 1,381 head on Tuesday. Compared to the last auction, steers under 500 lbs. were too lightly tested either this week or last week to develop a full market trend, but steady undertones were noted. Steers over 500 lbs. sold mostly $5-10 lower in a narrow comparison on a lower quality offering. Heifers under 450 lbs. were too lightly tested to develop any market trend. Heifers over 450 lbs. sold generally steady in a narrow comparison. Benchmark steers averaging 733 lbs. sold for $382-387.50, averaging $382.93.
Nebraska: North Platte Stockyards in North Platte sold 3,871 head on Tuesday. Compared to the previous auction, steers and heifers were mixed. Benchmark steers averaging 730 lbs. sold for $376.50-398, averaging $385.36.
Utah: Producers Livestock in Salina sold 1,948 head on Wednesday. Compared to the last auction, feeder steers sold $1-6 lower, while feeder heifers sold sharply lower. Benchmark steers averaging 776 lbs. sold between $352.50-374, and averaged $361.98. — Charles Wallace, WLJ contributing editor
