Wednesday markets
Cattle futures closed in the green as it appears futures are rallying from their lows made last week.
“CME cattle futures are continuing their rally begun yesterday, making new highs for the move easily,” Cassie Fish, market analyst, wrote in The Beef. “It’s truly a sell the rumor, buy the fact moment. Most active October LC has posted an outside week and is higher on the week, cementing a technical bottom. A rally into early August happens more times than not and this year appears to be no exception.”
Live cattle futures closed higher, with the August contract up 42 cents to $227.90 and the October contract $1.80 higher to $223.97.
Cash trade has yet to develop, with only 607 head sold. On the formula side, 25,900 head averaging 940 lbs. sold for an average of $376.33.
“After a monster 5-week correction in fed cattle prices, the market likely carved out a low last week, just as futures and boxes have done,” Fish wrote. “This week, packers have bid $2 lower than last week’s average but cash is expected to trade steady with last week. Reports that the oppressive heat has hurt performance and increased death loss on cattle in Kansas, Nebraska and South Dakota continue to circulate in the industry.”
Today’s slaughter is estimated to be 107,000 head, 9,000 head above last week.
Boxed beef prices were lower on 137 loads, with the Choice cutout down $2.43 to $363.43 and the Select cutout $1.11 lower to $342.41.
CME beef trim contracts remain unchanged. The 50% lean beef trim August contract closed at $175, and the September contract at $165. The 90% lean beef trim August contract closed at $457, and the September contract at $453.
Feeder cattle
Feeder cattle futures also closed higher, with the August contract up $1.20 to $344.27 and the September contract $1.42 higher to $338.65.
The CME Feeder Cattle Index was up $1.10 to $348.47.
Corn futures closed lower, with the September contract down 9 cents to $4.49 and the December contract 8 cents lower to $4.71.
Auction markets either did not have sales or reported insufficient numbers for reporting. — Charles Wallace, WLJ contributing editor
