Wednesday markets
Cattle futures closed mixed as traders are looking for signs of support.
Live cattle futures closed lower, with the August contract down 80 cents to $237.62 and the October contract 47 cents lower to $233.55.
“Live cattle futures are continuing to scale lower as, simply put, there isn’t enough immediate support in the market to keep the contracts from trading lower,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments. “With boxed beef prices lower and the assumption the cash market could be pushed lower again this week too, traders are erring on the side of extra caution while the market continues to look for support.”
Cash trade was light, with 883 head sold. Live steers sold for $248, and dressed steers sold for $383. On the formula side, 28,500 head averaging 955 lbs. sold for an average of $411.83.
“This week’s primary focus is just how much lower the negotiated fed cattle market will trade. The USDA week-to-date volume is 1k head, with 264 steers and 195 heifers selling yesterday afternoon at $255,” Cassie Fish, market analyst, wrote in The Beef. “There was also some dressed traded noted at $395, which was $7 lower than last week’s dressed average.”
Today’s slaughter is estimated to be 108,000 head, 2,000 head lower than last week.
Boxed beef prices were lower on 119 loads, with the Choice cutout down $4.57 to $381.20 and the Select cutout $2.80 lower to $363.09.
Feeder cattle
Feeder cattle futures closed higher, with the August contract up $1.40 to $362.05 and the September contract $1.25 higher to $358.65.
The CME Feeder Cattle Index was $2.08 higher to $373.19.
Corn futures closed lower, with the July contract down 7 cents to $4.34 and the September contract down 8 cents to $4.35.
Texas: Lonestar Stockyards in Wildorado sold 973 head on Tuesday. Compared to two weeks ago, there were not enough comparable sales on yearlings due to the light test before the holiday week. Steer and heifer calves were too lightly tested from the previous sale for a market trend, but a sharply higher undertone was noted. A group of benchmark steers averaging 702 lbs. sold for $390.
Utah: Producers Livestock in Salina sold 406 head on Tuesday. There were not enough comparable sales for an accurate trend. Benchmark steers averaging 728 lbs. sold for $335-341, averaging $340.57. — Charles Wallace, WLJ contributing editor
