Wednesday markets
Cattle futures retreated slightly from yesterday’s rally, closing mixed.
“Following Tuesday’s wild rally, the live cattle contracts are trading in a more subtle nature Wednesday, longing to see increased fundamental support after such a bold run higher,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments.
Live cattle futures closed mixed, with the June contract up 42 cents to $255.90 and the August contract down 35 cents to $248.97.
Cash trade was light, with 256 head sold. On the formula side, 19,600 head averaging 945 lbs. sold for an average of $408.08.
“No cash cattle trade has developed yet and there’s a chance the week’s trade could be delayed until Thursday as feedlot managers are hopeful of seeing the market trade higher this week,” Stewart wrote.
Today’s slaughter is estimated to be 109,000 head, 4,000 head above last week.
Boxed beef prices were mixed on 149 loads, with the Choice cutout down $5.08 to $394.50 and the Select cutout up 41 cents to $377.26.
According to Cassie Fish, market analyst at The Beef, pre-report estimates for tomorrow’s Cattle on Feed report indicate that feedlots with 1,000 head or greater in June will be 2% higher. Placements in May are estimated to be down 8% from a year ago, and marketings for May is predicted to be sub-90%.
“Because of the record low marketing rate that has become the new normal,” Fish wrote.
“Still the industry will have placed more than they marketed.”
Feeder cattle
Feeder cattle futures closed slightly higher, with the August contract up 55 cents to $367.40 and the September contract 37 cents higher to $365.60.
The CME Feeder Cattle Index was $1.33 higher to $364.
Corn futures closed higher, with the July and September contracts up 7 cents to $4.21 and $4.29, respectively.
New Mexico: Roswell Livestock in Roswell sold 647 head on Tuesday. Compared to the last auction, steer calves 350-450 lbs. sold lower and 550-600 lbs. were $15-20 higher. Feeder steers 600-650 lbs. sold $10-20 higher. Heifer calves 400-450 lbs. sold $16-23 higher and 500-550 lbs were lower. No comparable numbers or sales of feeder heifers. Benchmark steers averaging 770 lbs. sold for $330-350, averaging $341.37.
Utah: Producers Livestock in Salina sold 475 head on Tuesday. Compared to the last auction, feeder cattle sold unevenly steady with few comparables, on calves and yearlings. Benchmark steers averaging 720 lbs. sold for $337. — Charles Wallace, WLJ contributing editor
