Wednesday markets
Feeders were the leaders, as cattle futures closed higher.
“CME cattle futures have been trading green all day today,” Cassie Fish, market analyst, wrote in The Beef. “There is just too much immediate good news around to keep the market in a sustained downtrend, despite bearish sentiment. Some futures contracts continue to stubbornly cling to their discounts to cash, reluctantly shaving off a bit of that today. As the day wears on, it’s turning into a feeders are the leaders kind of day with spot August feeders taking out the swing high of May 6 and now eyeing its contract high made May 1 of $379.45.”
Live cattle futures closed slightly higher, with the June contract up 85 cents to $256.05 and the August contract 52 cents higher to $246.67.
Cash trade was light, with 152 head sold. Live steers sold for $260, and dressed steers sold for $408. On the formula side, 19,800 head averaging 942 lbs. sold for an average of $410.65.
“No cash cattle trade has developed yet, and bids and asking prices are both elusive at this point,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments. “It’s most likely that trade will be delayed until Friday again, as feedlot managers will try to hold out in hopes that packers will up their bids when bidding does start.”
Today’s slaughter is estimated to be 108,000 head, 1,000 head lower than last week.
Boxed beef prices were lower on 98 loads, with the Choice cutout down $1.37 to $398.94 and the Select cutout $2.92 lower to $378.14.
Feeder cattle
Feeder cattle futures closed triple digits higher, with the August contract up $4.77 to $373.22 and the September contract $3.65 higher to $370.90.
“Not only are traders willing to advance the board because of the live cattle contract’s support, but with the increased demand in the countryside for feeder cattle, fundamental support is also encouraging the complex,” Stewart wrote.
The CME Feeder Cattle Index was up $2.44 to $373.
Corn futures closed lower, with the July and September contracts down 2 cents to $4.07 and $4.15, respectively.
New Mexico: Roswell Livestock in Roswell sold 578 head on Tuesday. Compared to the last auction, steer calves 400-600 lbs. sold $5-10 higher, with weaned calves 350-400 lbs. selling $20-25 higher. Feeder steers and feeder heifers had insufficient numbers to compare, but a higher market was evident. A group of steers averaging 776 lbs. sold for $370.
Texas: Lonestar Stockyards in Wildorado sold 745 head on Tuesday. Compared to the last auction, feeder steers and heifers traded mostly $5-8 higher, with larger advances on load lots of cattle. Steer and heifer calves traded $10-20 higher. Benchmark steers averaging 750 lbs. sold for $375. — Charles Wallace, WLJ contributing editor
