Wednesday markets
Cattle futures closed higher despite the lack of cash trade.
“It’s somewhat questionable where traders are getting the additional support from this morning, as boxed beef prices are mixed and we’ve yet to see any trade in the fed cash cattle market,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments. “But maybe traders’ confidence lies in the fact that they believe fed cash cattle prices will trade higher later this week and that Friday’s Cattle Inventory report will be bullish. I hope all those claims come to fruition.”
Live cattle futures closed higher, with the February contract up $1.22 to $236.70 and the April contract $1.32 higher to close at $238.57.
Cash trade was light, with 185 head sold.
On the formula side, 18,300 head averaging 929 lbs. sold for an average of $370.65.
Today’s slaughter is estimated to be 112,000 head, 2,000 head below the prior week.
“So far in 2026, historically poor margins have forced the packer to slow throughput significantly as high cattle prices force the packer to ration,” wrote Cassie Fish, market analyst, for The Beef. “The industry has less fed cattle available to slaughter this January than last January, but the kill cuts are so big, it’s possible the industry is underkilling. As we head into February, known as a weak seasonal beef demand period, look for slaughter to remain sharply curtailed. It’s tough to slaughter less cattle than in 2015, which was the smallest in modern history, but so far 2026 has undershot 2015.”
Boxed beef prices were mixed on 86 loads, with the Choice cutout up $1.63 to $369.74 and the Select cutout $1.62 lower to $363.57.
Feeder cattle
Feeder cattle futures also closed triple digits higher, with the January contract up $1.25 to $368.15 and the March contract $3.85 higher to $365.52.
The CME Feeder Cattle Index was down 74 cents to $363.99.
Corn futures closed higher, with the March and May contracts up 3 cents to $4.30 and $4.38, respectively.
Colorado: Winter Livestock in La Junta sold 989 head on Tuesday. Compared to the last auction, feeder steers under 700 lbs. sold mostly $3-7 higher, with instances of sharply higher. Feeder steers over 700 lbs. sold sharply lower. Feeder heifers sold unevenly steady across all weight classes on a light test. Benchmark steers averaging 728 lbs. sold for $361-362.50, averaging $361.34.
Utah: Producers Livestock in Salina sold 928 head on Tuesday. Compared to the last auction, feeder steers sold $1-13 lower. Feeder heifers 300-500 lbs. sold sharply higher, with 500 lbs. and heavier selling unevenly steady. Benchmark steers averaging 737 lbs. sold for $360-378, averaging $374.01. — Charles Wallace, WLJ contributing editor
