Wednesday markets
Cattle futures closed lower as cash trade weakened.
“Inside and outside news is coming fast and reeks of tremendous levels of uncertainty,” Cassie Fish, market analyst, wrote in The Beef. “It is impossible, even for the most seasoned trader, to outtrade the current market. Downside risk is real and not abating.”
Live cattle futures closed down triple digits, with the April contract $2.22 lower to $230.15 and the June contract down $2.12 to close at $228.07.
Cash trade was active, with 14,923 head sold. Liver steers sold between $233-236, and dressed steers sold for $372.
On the formula side, 24,300 head averaging 952 lbs. sold for an average of $386.25.
ShayLe Stewart, DTN livestock analyst, wrote in her midday comments cash trade “is currently being noted in the North at $372, which is $8 lower than last week’s weighted average. And a handful of steers have also been sold in Kansas at $235, which is $5 lower than last week’s weighted average.”
Today’s slaughter is estimated to be 106,000 head, 5,000 head below a week earlier.
Boxed beef prices were higher on 87 loads, with the Choice cutout up $2.03 to $396.70 and the Select cutout $2.48 higher to $389.25.
Feeder cattle
Feeder cattle also closed lower, with the March contract down $4.62 to $348.72 and the April contract $6.37 lower to close at $343.30.
“The onset of weaker market fundamentals in the cash sector is why the feeder cattle complex is trading significantly lower and is currently even pressuring the market’s 100-day moving average in the spot April contract,” Stewart wrote.
The CME Feeder Index was down 62 cents to $365.77.
Corn futures closed higher, with the March and May contracts up 8 cents to $4.44 and $4.60, respectively.
Colorado: Winter Livestock in La Junta sold 7,166 head on Tuesday. Compared to the last auction, feeder steers sold mostly $1-3 higher, with instances of sharply higher across all weight classes. Feeder heifers sold sharply higher across all weight classes. Benchmark steers averaging 711 lbs. sold between $380-390, averaging $387.81.
Texas: Lonestar Stockyards in Wildorado sold 1,562 head on Tuesday. Compared to the last auction, top-end steers that are light enough to be turned out back to grass traded mostly $5-10 higher. Good feeding type yearlings weighing over 800 lbs. off wheat traded mostly $1-5 lower. All other classes of steer and heifer calves sold mostly $10-20 lower. Benchmark steers averaging 705 lbs. sold between $387-397, averaging $390.13. — Charles Wallace, WLJ contributing editor
