Wednesday markets
Cattle futures were hot as traders propelled February live cattle futures above $200.
“The ability to move prices to and above the $200 per cwt threshold could create not only additional buyer support across the complex but there could be some additional long-term volatility added to the entire complex at current price levels,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments.
Live cattle futures closed triple digits higher, with the February contract up $3 to $200.05 and the April contract up $2.45 to $199.77.
Cash trade was light, with 1,291 head sold for $201-206.
On the formula side, 27,800 head averaging 906 lbs. sold for an average of $321.40.
“A few bids are now on the table in parts of Texas at midmorning at fully steady money with Tuesday’s light Southern business, live deals were marked at $201, also fully steady with the prior week’s weighted averages,” Stewart said. “The North was fairly quiet with just a handful of dressed trade reported in Iowa at $320, certainly not enough trade to establish any kind of an accurate trend for the week.”
Today’s slaughter is estimated to be 124,000 head, the same as a week earlier.
Boxed beef prices were lower on 139 loads, with the Choice cutout down 3 cents to $332.02 and the Select cutout down $1.56 to $317.99.
Analysts released the pre-report estimates for this Friday’s Cattle on Feed report release. The consensus is that cattle on feed will be 99.7% for feedlots of 1,000 head or greater in January. Placements in December are estimated to be 101.5%, and marketings for December are predicted at 101.2%.
Feeder cattle
Feeder cattle also closed much higher, with the January contract up $2.65 to $277.05 and the March contract up $5.82 to $273.07.
The CME Feeder Cattle Index was down $1.25 to $277.06.
“The huge wave of buying being witnessed today is most likely linked to managed funds, who continue to pile into long feeder cattle and live cattle positions with seeming reckless abandon,” Cassie Fish, market analyst, wrote in The Beef. “This next CFTC Commitment of Traders’ report is expected to show record net longs held by funds and there is no end in sight to when their appetite will be satiated.”
Corn futures were lower, with the March and May contracts down 5 cents to $4.84 and $4.94, respectively.
Colorado: Winter Livestock in La Junta sold 1,439 head on Tuesday. Compared to the last auction, steers between 450-600 lbs. sold mostly $6 higher and over 600 lbs. sold unevenly steady. Feeder heifers sold unevenly steady on a light test. Benchmark steers averaging 746 lbs. sold for $270-282.75, averaging $282.40.
Montana: Miles City Livestock Commission in Miles City sold 813 head on Tuesday. Compared to the previous auction, feeder steers under 550 lbs. sold mostly $10-20 lower in a narrow comparison. Steers over 550 lbs. sold steady. Heifer calves sold steady in a narrow comparison, except 600-649 lbs. heifers sold mostly $4-8 higher. A group of steers averaging 630 lbs. sold for $314-326.50, averaging $323.67.
Texas: Lonestar Stockyards in Wildorado sold 598 head on Tuesday. Compared to the last auction, feeder steers and heifers traded mostly steady to $2 lower. There were not enough comparable sales of steer and heifer calves for a market trend. Benchmark steers averaging 792 lbs. sold for $274.50. — Charles Wallace, WLJ contributing editor
