Wednesday markets
Traders threw cattle futures into reverse while they awaited direction in cash trade.
Live cattle futures closed lower, with the February contract down $1.87 to $193.70 and the April contract down $2.25 to $195.52.
Cash trade has yet to develop, with only 620 head sold—not enough for a market trend.
On the formula side, 26,200 head averaging 923 lbs. sold for an average of $313.15.
“It’s believed that again this week cash cattle prices will trade higher—but traders want to see that assumption come to fruition before they advance the contracts much more,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments.” Asking prices are noted in Kansas at $200, but otherwise, there are no other asking prices listed, and no bids have surfaced. Trade will likely be delayed until Thursday or Friday as feedlot managers aren’t in any rush to trade cattle. Tuesday afternoon the choice cut did close lower, and so it’s comforting to note that prices are again higher this morning, but prices will need to continue to be monitored in this afternoon’s close.”
Today’s slaughter is estimated to be 122,000 head, bringing the weekly total so far to a projected 357,000 head.
Boxed beef prices were higher on 181 loads, with the Choice cutout up $2.82 to $328.61 and the Select cutout up $1.46 to $306.89.
Feeder cattle
Feeder cattle futures were also triple digits lower, with the January contract down $2.82 to $265.57 and the March contract down $2.95 to $264.97.
The CME Feeder Cattle Index was up by $3.66 to $272.29.
Corn futures were lower, with the March contract down 4 cents to $4.54 and the May contract down 3 cents to $4.62.
Colorado: Winter Livestock in La Junta sold 3,063 head on Tuesday. Compared to the last auction, feeder steers sold mostly $8-12 higher across all weight classes. Feeder heifers sold mostly $6-11 higher across all weight classes. Benchmark steers averaging 731 lbs. sold for $267.50-281, averaging $276.13.
Texas: Lonestar Stockyards in Wildorado sold 1,869 head on Tuesday. Compared to the last auction, feeder steers and heifers traded mostly $3-6 higher, with instances of up to $10 higher on 700-800 lb. steers. Steer and heifer calves traded mostly $10-20 higher on comparable sales. Benchmark steers averaging 709 lbs. sold for $275-278, averaging $276.19.
Wyoming: Winter Livestock in Riverton sold 3,861 head on Tuesday. An accurate comparison could not be made due to a lack of a recent auction, but a higher undertone was noted. Benchmark steers averaging 773 lbs. sold for $256.50-280.50, averaging $271.43. — Charles Wallace, WLJ contributing editor
