Wednesday markets
Live and feeder cattle futures hit new contract highs, driven by strong support from steep futures discounts to cash in several contract months.
“Futures have pushed into overbought territory on technical indicators but are still holding strong,” wrote Cassie Fish, market analyst for The Beef. “The 2026 contracts are attracting buyers and also saw contract highs today. It’s the futures discount to cash, which in some contract months is dramatically steep, that continues to provide underlying support for futures.”
Live cattle futures closed higher, with the August contract up $1.50 to $223.90 and the October contract up $1.47 to $220.75.
Cash trade has yet to develop, with only 277 sold at $230.
On the formula side, 20,300 head averaging 906 lbs. sold for an average of $364.54.
Today’s slaughter is estimated to be 117,000 head, the same as a week earlier.
Boxed beef prices were lower on 154 loads, with the Choice cutout down $4.87 to $372.85 and the Select cutout down $4.67 to $357.91.
Feeder cattle
Feeder cattle futures gained over $3, with the August contract up $3.30 to $325.57 and the September contract up $3.47 to $325.85.
“The lack of buyer pressure in the cattle market in general, and specifically the feeder cattle futures, has markets pushing even higher with very little resistance currently seen,” DTN wrote in the midday comments. “On the continuous monthly feeder cattle chart, prices have a rocketlike projection with a $80 per cwt rally seen over the last year, without a significant market correction within that time frame. This has still kept traders bullish, but some are questioning the ability for additional technical support to continue this trend over the coming months.”
The CME Feeder Cattle Index was up $1.21 to $321.10.
Corn futures also closed in the green, with the September and December contracts up 4 cents to $4.05 and $4.24, respectively.
New Mexico: Roswell Livestock in Roswell sold 610 head on Tuesday. Compared to the last auction, steer calves 300-350 lbs. sold $20-30 higher and 500-550 lbs. were $2 higher. Feeder steers and heifers over 600 lbs. had no comparable sales, but a stronger undertone was noted. Heifer calves 350-400 lbs. sold $10 higher, while 400-450 lbs. were $5 lower and 450-600 lbs. sold $18-20 higher. A group of steers averaging 715 lbs. sold for $345.
Utah: Producers Livestock in Salina sold 608 head on Tuesday. Compared to the last auction two weeks ago, feeder steers and heifers sold $1-8 higher. A group of steers averaging 733 lbs. sold between $329-340, averaging $330.68. — Charles Wallace, WLJ contributing editor
