Wednesday markets
Cattle futures traded in a narrow range Wednesday, hovering just below the 40-day moving average as futures closed mixed.
Live cattle futures were mixed, with the June contract unchanged at $221.60 and the August contract down 57 cents to $208.97.
“There continues to be an aggressive price spread of $15 per cwt between spot June and October contracts, with front month futures heavily impacted by current wholesale beef values and the current demand to gain access to immediate supplies,” DTN wrote in the midday comments. “Cash cattle markets remain quiet once again on Wednesday morning. It’s another slow start in cash cattle country with only some early asking prices noted around $228-230 in the South, but they are still not established in the North.”
Cash trade was minimal, with only 226 head sold—not enough for a market trend.
On the formula side, 29,900 head averaging 904 lbs. sold for an average of $374.63.
Today’s slaughter is estimated to be 118,000 head, 5,000 head above a week earlier.
Boxed beef prices were mixed on 105 loads, with the Choice cutout up 69 cents to $394.94 and the Select cutout lower $6.12 to $376.29.
DTN reported strong demand at Northern Video’s early summer special in Billings, MT, where nearly 68,000 head were offered. Notable sales included 570 value-added yearlings, averaging 1,090 lbs., that brought a weighted average price of $285.50 for current delivery, and 1,200 steers, averaging 990 lbs., that sold for $301.50 for August delivery.
Feeder cattle
Feeder cattle futures closed slightly higher, with the August contract up 5 cents to $302.30 and the September contract up 15 cents to $302.60.
The CME Feeder Cattle Index was up 27 cents to $310.60.
Corn futures were lower, with the July contract down 6 cents to $4.10 and the September contract down 7 cents to $4.05.
Texas: Lonestar Stockyards in Wildorado sold 766 head on Tuesday. Compared to the last auction, steer calves traded mostly $5 higher, and heifer calves were mostly $10 higher. There were not enough comparable sales on feeder steers or heifers for a market trend, but a sharply higher undertone was noted. A group of steers averaging 704 lbs. sold for $319.
Utah: Producers Livestock in Salina sold 526 head on Tuesday. Compared to the last auction, feeder steers sold steady to $6 lower, feeder heifers were steady to $5 lower, and feeder bulls were too lightly tested to create a trend. Benchmark steers averaging 763 lbs. sold for $280-310, averaging $287.46. — Charles Wallace, WLJ contributing editor
