Wednesday markets
Cattle futures edged higher amid choppy trading, as technical support and deep cash market discounts continue to limit selling pressure.
Live cattle jumped sharply higher, with the June contract up $2.42 to $218.40 and the August contract up $2.60 to $212.35.
“More than anything, traders are merely keeping the contracts steady in their current sideways trading range until they have a better idea of what the cash market is going to do this week,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments. “Asking prices are noted in the South at $226, but otherwise, the market is still silent. Trade will likely be delayed until Thursday or Friday.”
Cash trade was moderate, with 2,707 head sold. Live steers sold for $235, and dressed steers sold for $375.
On the formula side, 26,300 head averaging 905 lbs. sold for $359.94.
“This week’s negotiated fed cattle trade has yet to get underway,” wrote Cassie Fish, market analyst, in The Beef. “After seven consecutive weeks of higher prices totaling $22/cwt, some are predicting a steady go while others insist higher is in the cards. Either way, packer margins remain red and production schedules remain reduced to levels not seen since 2015 and 2016—when cattle on feed numbers 600k to 700k smaller than today.”
Today’s slaughter is estimated to be 121,000 head, 3,000 head above a week earlier.
Boxed beef prices were mixed on 123 loads, with the Choice cutout down 28 cents to $365.16 and the Select cutout up 20 cents to $356.72.
Feeder cattle
Feeder cattle futures also climbed over $2, with the August contract up $2.65 to $303.87 and the September contract up $2.72 to $303.15.
“The feeder cattle complex is again following in the live cattle market’s direction as all are hopeful that traders will later in the week find the fundamental support that they’re hopeful to see, but at this point, it’s still too early in the week to know,” Stewart said.
The CME Feeder Cattle Index was unchanged at $297.75.
Corn futures were higher, with the July contract up a fraction to $4.38 and the September contract up 4 cents to $4.28.
Texas: Lonestar Stockyards in Wildorado sold 872 head on Tuesday. Compared to the last auction, steer and heifer calves traded mostly $5-10 higher. There were not enough comparable sales of yearlings for a market trend. Benchmark steers averaging 720 lbs. sold for $318.25.
Utah: Producers Livestock in Salina sold 451 head on Tuesday. Compared to the last auction, feeder steers sold $5-6 lower. Feeder heifers between 600-800 lbs. sold $8-12 higher, other feeder heifers sold $4-6 lower. A group of steers averaging 768 lbs. sold for $280-303, averaging $284.49. — Charles Wallace, WLJ contributing editor
