Wednesday markets
Cattle futures closed lower as traders are looking for fundamental support.
“There isn’t a cattle trader alive who, if being honest, is not pondering whether today’s sell-off in cattle futures is a break to buy or whether a more tradeable top has been established,” wrote Cassie Fish, market analyst, for The Beef. “The market came into today very overbought and has made a new low for the week, after making a new high for the move yesterday.”
Live cattle futures closed sharply lower, with the February contract down $2.10 to $234.52 and the April contract $2.20 lower to close at $235.17.
Cash trade was light, with 233 head sold.
On the formula side, 27,100 head averaging 958 lbs. sold for an average of $364.46.
“On the fundamental side, the negotiated fed cattle trade this week has pretty much been nonexistent and the boxed beef trade woefully disappointing,” Fish continued. “There are plenty of fed cattle available in some regions and tightness in others, which is well known but creates an obvious challenge for packers who have plants in multiple states. With packer margins historically red, the packer is in no mood to chase fed cattle prices higher this week, despite bullish cattle feeders.”
Today’s slaughter is estimated to be 115,000 head, 30,000 head above the holiday-shortened week.
Boxed beef prices were mixed on 139 loads, with the Choice cutout $3.03 higher at $354.28 and the Select cutout $1.80 lower at $349.28.
Feeder cattle
Feeder cattle futures also closed down, with the January contract $2.57 lower to $359.60 and the March contract down $3.52 to $355.50.
The CME Feeder Cattle Index was up 78 cents to $363.15.
Corn futures closed higher, with the March and May contracts 2 cents higher to $4.46 and $4.54, respectively.
Colorado: Winter Livestock in La Junta sold 3,586 head on Tuesday. Compared to the last auction, feeder steers sold $4-5 higher, with instances of sharply higher across all weight classes. Feeder heifers sold sharply higher across all weight classes. Benchmark steers averaging 740 lbs. sold for $376-378 and averaged $377.43.
Texas: Lonestar Stockyards in Wildorado sold 1,787 head on Tuesday. Compared to the last auction, feeder steers and heifers traded mostly $15-20 higher. Steer and heifer calves traded mostly $5-7 higher. Benchmark steers averaging 727 lbs. sold for $362.75-379.50 and averaged $371.
Wyoming: Winter Livestock in Riverton sold 4,068 head on Tuesday. Higher prices were reported on all classes of cattle. Benchmark steers averaging 728 lbs. sold for $384-402.50 and averaged $388.02. — Charles Wallace, WLJ contributing editor
