Wednesday markets
Traders pumped the brakes on the cattle complex, with futures closing lower.
“One could point to the day’s downturn in boxed beef prices as part of the catalyst for today’s weakness, and while that might be adding some pressure to the day, we also seasonally expect boxed beef prices to turn lower during this time as we are a long way away from prime grilling weather,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments.
Live cattle were lower, with the February contract down $1.52 to $207.02 and the April contract down $2.32 to $204.95.
Cash trade was light, with 699 head sold for $212.
On the formula side, 26,200 head averaging 911 lbs. sold for an average of $324.99.
“The cash cattle market is still silent with no bids having surfaced just yet,” Stewart wrote. “Asking prices are firm in the South at $210 but are still not established for Northern feedlots. Packer demand should begin to improve at any time now, but at this point, it’s looking like trade will be delayed until Thursday or Friday.”
Today’s slaughter is estimated to be 124,000 head, the same as a week earlier.
Boxed beef prices were lower on 160 loads, with the Choice cutout down $1.91 to $330.54 and the Select cutout down $1.29 to $320.67.
Feeder cattle
Feeder cattle also closed triple digits lower, with the January contract down $1.27 to $280.55 and the March contract down $2.97 to $275.27.
The CME Feeder Cattle Index was up $1.13 to $279.06.
Corn futures were sharply higher, with the March and May contracts up 11 cents to $4.97 and $5.07, respectively.
Colorado: Winter Livestock in La Junta sold 4,129 head on Tuesday. Compared to the previous auction, feeder steers sold $11-12 higher, with instances of sharply higher across all weight classes. Feeder heifers sold $5-9 higher, with instances of sharply higher across all weight classes. Benchmark steers averaging 766 lbs. sold for $267.50-287.25, averaging $276.66.
Montana: Miles City Livestock in Miles City sold 1,591 head on Tuesday. Compared to the last auction, feeder steers under 500 lbs. were too lightly tested to develop a full market trend, 500-599 lbs. sold mostly $10 higher and over 600 lbs. sold mostly $10-20 higher in a narrow comparison. Heifer calves under 500 lbs. were too lightly tested to develop an accurate market trend, 500-599 lbs. sold mostly $10-15 higher, 600-649 lbs. were sold steady to firm and over 650 lbs. were too lightly tested to develop any market trend. Benchmark steers averaging 743 lbs. sold for $302.50-304.50, averaging $304.39.
Texas: Lonestar Stockyards in Wildorado sold 1,605 head on Tuesday. Compared to the previous auction, feeder steers and heifers traded $3-8 higher. Steer and heifer calves traded mostly $10-15 higher on a light test. Benchmark steers averaging 769 lbs. sold for $272-284, averaging $281.36. — Charles Wallace, WLJ contributing editor
