Wednesday markets
Cattle futures continue to climb to record highs with strong trader support, and there are no signs yet that prices are about to drop.
Live cattle futures closed mixed, with the August contract down 20 cents to $219.77 and the October contract up 52 cents to $217.35.
Cash trade was nonexistent, with only 73 head sold, not enough for a market trend. On the formula side, 26,000 head averaging 911 lbs. sold for an average of $362.49.
“There are growing expectations of higher negotiated fed cattle prices this week,” wrote CassieFish, market analyst for The Beef. “A slug of lesser quality heifers sold in Kansas yesterday at $225/cwt, and $225 is currently bid and passed there. Last week’s average Kansas price was $224. Packer purchases over the last two weeks were at the low end of the range, at just above 50k head per week. What lies ahead is an eight-week stretch of full production weeks and ample packer-owned cattle inventory is needed to supply plants.”
Today’s slaughter is estimated to be 117,000 head, 5,000 head lower than a week ago.
Boxed beef prices were lower on 143 loads, with the Choice cutout down $6.59 to $386.45 and the Select cutout down $5.19 to $373.27.
Feeder cattle
Feeder cattle futures closed higher, with the August contract up $1.35 to $320.47 and the September contract up 85 cents to $320.02.
The CME Feeder Cattle Index was down 43 cents to $311.40.
“It’s truly incredible to see the feeder cattle complex continuing to charge higher and higher, even though just yesterday the market scored new contract highs,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments. “But with ample support from the market’s fundamentals, the contracts have seemed to gain another gust of momentum.”
Corn futures closed slightly higher, with the July and September contracts up a penny to $4.12 and $3.99, respectively.
Texas: Lonestar Stockyards in Wildorado sold 1,082 head on Tuesday. Compared to the last auction two weeks ago, steer calves traded mostly $5 higher. Heifer calves traded mostly $5 lower, reflecting a market correction after an unprecedented rise in prices and buyer demand noted from two weeks ago. There were not enough comparable sales on yearlings, but a lower undertone was noted. Benchmark steers averaging 703 lbs. sold for $324-332, averaging $326.16. — Charles Wallace, WLJ contributing editor
