Wednesday markets
Cattle futures closed sharply lower as traders seem hesitant ahead of this Friday’s Cattle on Feed and Cattle Inventory reports.
“Knowing later this week both the monthly Cattle on Feed and bi-annual Cattle Inventory report will be shared, traders simply aren’t willing to advance the contracts with little to no fundamental support ahead of those big hitting reports being released,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments.
Live cattle futures closed over $3 lower, with the August contract down $3.47 to $223.20 and the October contract $4.02 lower to $219.20.
Cash trade was moderate, with 8,581 head sold. Live steers sold for $230-232, and dressed steers sold for $365. On the formula side, 24,500 head averaging 948 lbs. sold for an average of $389.54.
USDA reported in Nebraska, early dressed cattle sales were reported at $365, down $15 from last week. A few live cattle traded between $230-232, but volumes were too light to establish a market trend. In the Western Corn Belt, early live sales ranged around $230, or $5-10 lower than a week ago, while a limited number of dressed cattle also sold at $365, with too few trades to provide an adequate market test.
Today’s slaughter is estimated to be 95,000 head, 13,000 head lower than last week.
Cassie Fish, market analyst, wrote for The Beef that lighter-than-expected cattle slaughter has left harvest well behind last week’s pace, with speculation about additional production cuts fueled by slow summer boxed beef demand. She noted the only confirmed disruption so far was a one-day plant shutdown, but expectations for this week’s slaughter have fallen from 525,000 head to about 520,000, which would be the lowest non-holiday total since mid-April.
Boxed beef prices were lower on 116 loads, with the Choice cutout down $3.41 to $363.50 and the Select cutout $3.66 lower to $350.57.
CME beef trim contracts were unchanged from yesterday. The 50% trim August contract was $180 and the September contract was $168. The 90% trim August contract was $460 and the September closed at $455.
Feeder cattle
Feeder cattle also closed sharply lower, with the August contract down $8.37 to $341.17 and the September contract $8.77 lower to $336.20.
The CME Feeder Cattle Index was down $3.49 to $356.22.
Corn futures closed higher, with the September and December contracts up 9 cents to $4.62 and $4.84, respectively.
Texas: Lonestar Stockyards in Wildorado sold 435 head on Tuesday. There were not enough comparable sales for a market trend. A group of unweaned steers averaging 771 lbs. sold for $335.
Utah: Producers Livestock in Salina sold 467 head on Tuesday. Compared to the last auction, feeder steers sold $2-15 lower, while heifers sold with too few comparable sales to trend. A group of benchmark steers averaging 726 lbs. sold for $352.50-367.50, averaging $356.78. — Charles Wallace, WLJ contributing editor
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