Wednesday markets
Livestock futures rebounded as traders shrugged off earlier bearish sentiment.
“The live cattle complex seemed to catch its breath after reacting poorly to USDA’s announcement earlier this week that the U.S. border was going to reopen to Mexican cattle imports,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments.
Live cattle futures closed higher, with the August contract up $1.70 to $212.45 and the October contract up $1.90 to $209.70.
Cash trade was moderate, with 10,395 head sold. Live steers sold for $220-234, and dressed steers sold between $365-372.50.
On the formula side, 21,200 head averaging 915 lbs. sold for an average of $366.42.
“A few deals have been reported in Western Nebraska at $230, which is roughly $1 lower than last week’s weighted average. Asking prices in the South remain firm at $224 to $225 and at $368 in the North,” Stewart said.
Slaughter is estimated to be 122,000 head, 4,000 head above the prior week.
Boxed beef prices were mixed on 112 loads, with the Choice cutout down 74 cents to $394.86 and the Select cutout up 25 cents to $380.31.
Feeder cattle
Feeder cattle futures regained some ground lost yesterday, with the August contract up $3 to $309.02 and the September contract up $3.22 to $308.87.
“Thankfully, just like the live cattle complex, the feeder cattle market is back to trading higher as traders have collectively seemed to agree that there’s been enough emotional reaction played out in the marketplace from the USDA announcement that the border was again going to open to Mexican cattle imports,” Stewart wrote. “The sheer change in market direction is especially helpful for the feeder cattle market’s morale as next week more online video auctions are set to take place and producers want to capitalize on the market’s strong tone and not be undermined by weaker trader sentiments.”
The CME Feeder Cattle Index was up $1 to $315.07.
Corn futures closed higher, with the July contract up 9 cents to $4.29 and the September contract up 12 cents to $4.18.
Most auction markets were closed on Tuesday due to the holiday.
Missouri: Ozarks Regional Stockyards in West Plains sold 1,711 head on Tuesday. Compared to the last auction, yearling steers and heifers sold steady to $4 higher. Steer calves sold $6-12 higher, with heifer calves selling unevenly from $4 lower to $4 higher. Benchmark steers averaging 785 lbs. sold for $316-321, averaging $319.67. — Charles Wallace, WLJ contributing editor
