Wednesday markets
Cattle futures closed mixed due to a lack of fundamental support from cash trade.
“Outside market noise is loud today and CME cattle futures spent most of the day lower until rallying into the close,” Cassie Fish, market analyst, wrote in The Beef.
Live cattle futures closed slightly higher, with the April contract up 17 cents to $235.40 and the June contract 30 cents higher to $234.
Cash trade was minimal, with only 81 head sold.
On the formula side, 18,700 head averaging 954 lbs. sold for an average of $378.28.
“It’s quiet in the country with practically no negotiated fed cattle trade so far this week,” Fish wrote. “Cattle feeders have raised asking prices after selling $5/cwt lower last week. So far, the packer is in no hurry to get things started.”
Today’s slaughter is estimated to be 105,000 head, 1,000 head below a week earlier.
Boxed beef prices were lower on 66 loads, with the Choice cutout down $1.57 to $401.74 and the Select cutout 56 cents lower to $396.16.
“A further short-term break in boxed beef prices is expected this week and next,” Fish said. “It’s too early for help from seasonal demand and the Greeley strike news has already been priced by the market.”
Feeder cattle
Feeder cattle futures closed lower, with the March contract down $1.07 to $358.72 and the April contract 97 cents lower to $353.82.
The CME Feeder Cattle Index was up a penny to $358.32.
Corn futures closed sharply higher, with the May and July contracts up 9 cents to $4.63 and $4.74, respectively.
Colorado: Winter Livestock in La Junta sold 950 head on Tuesday. Compared to the last auction, feeder steers sold mostly $2-4 lower across all weight classes. Feeder heifers under 550 lbs. sold $8-9 higher, with instances of sharply higher. Heifers over 550 lbs. sold unevenly steady. Benchmark steers averaging 740 lbs. sold between $365-380, averaging $367.07.
Montana: Miles City Livestock in Miles City sold 1,348 head on Tuesday. Compared to the last auction, all feeder cattle were too lightly tested last week to develop an accurate market trend, but higher undertones were noticed on all steers. Heifers were too lightly tested to develop a market trend, but steady to higher undertones were noted. Benchmark steers averaging 717 lbs. sold between $390-418, averaging $417.31.
Utah: Producers Livestock in Salina sold 1,148 head on Tuesday. Compared to the previous auction, feeder cattle sold unevenly, with calves and yearlings steady. Benchmark steers averaging 783 lbs. sold between $361-365, averaging $363.22. — Charles Wallace, WLJ contributing editor
