Wednesday markets
Cattle futures opened quietly today and traded on both sides of steady, following yesterday’s volatile, rumor-driven trading session, which was sparked by an immigration raid at a processing plant in Omaha, NE.
“Yesterday’s ICE raid rumors turned out to be overblown, but a cloud of uncertainty continues to drift over the packing industry,” wrote Cassie Fish, market analyst, in The Beef. “Anything that might cause a disruption in production is always considered bearish.”
Live cattle futures closed mixed, with the June contract up 75 cents to $227.82 and the August contract down 17 cents to $218.02.
Cash trade was moderate, with 1,355 head sold between $238-240.
On the formula side, 19,900 head averaging 890 lbs. sold for an average of $360.58.
“The negotiated fed cattle trade has gotten off to a slow and spotty start, with some trade at steady yesterday and today and a very small number on the electronic trading platform known as FCE or Fed Cattle Exchange, at higher money in Kansas,” Fish continued. “Any thoughts of lower cash fed cattle prices for this week have been banished.”
Today’s slaughter is estimated to be 110,000 head, down 11,000 from a week earlier.
Boxed beef prices were higher on 108 loads, with the Choice cutout up $3 to $374.76 and the Select cutout up 91 cents to $360.75.
Feeder cattle
Feeder cattle futures closed lower, with the August contract down $2.07 to $311.07 and the September contract down $1.95 to $310.80.
The CME Feeder Cattle Index was unchanged at $314.04.
“Upon seeing the hesitant nature of the live cattle complex, it comes as no real surprise to see the feeder cattle contracts also trading lower,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments. “Until more fundamental support arises, or the live cattle contracts regain their rallying mentality, it’s likely the feeder cattle contracts will continue to trade cautiously.”
Corn futures closed slightly lower, with the July contract down a penny to $4.37 and the September contract down a fraction to $4.25.
Utah: Producers Livestock in Salina sold 585 head on Wednesday. Compared to the last auction, feeder steers and heifers under 600 lbs. sold $5-10 higher, with feeder steers and heifers over 600 lbs. sold $3-7 lower. Benchmark steers averaging 768 lbs. sold for $240-261, averaging $258.24. — Charles Wallace, WLJ contributing editor
