Wednesday markets
Cattle futures were green with the prospect of higher cash trade.
Live cattle futures closed triple digits higher, with the April contract up $1.85 to $201.40 and the June contract up $1.62 to $197.87.
“Upon seeing the equity markets trading higher and the continued support of stronger boxed beef prices, the live cattle complex is back in action, trading higher into Wednesday’s noon hour,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments. “The timing of the market’s higher climb is ideal for the cash cattle complex too as some early bids have surfaced in the South at $200, but feedlot managers aren’t impressed with the packer’s attempt to get cattle bought at those levels.”
Cash trade was light, with only 863 head sold.
On the formula side, 26,800 head averaging 905 lbs. sold for an average of $316.07.
“In Kansas there have been a few cattle traded at $200, up $3/cwt from last week’s average,” Cassie Fish, market analyst, wrote in The Beef. “It is quiet elsewhere, but prices are expected to average above last week’s 5-area average of $200.28 once trading gets underway. Cash prices a year ago this week averaged $187.47.”
Today’s slaughter is estimated to be 123,000 head, 3,000 above a week earlier.
Boxed beef prices were mixed on 153 loads, with the Choice cutout down 10 cents to $321.10 and the Select cutout up 67 cents to $307.53.
Feeder cattle
Feeder cattle also propelled higher, with the March contract up $2.75 to $280.25 and the April contract up $3.02 to $280.72.
The CME Feeder Cattle Index was up $2.59 to $276.54.
Corn futures were sharply lower, with the March contract down 7 cents to $4.48 and the May contract down 9 cents to $4.60.
Colorado: Winter Livestock in La Junta sold 6,937 head on Tuesday. Compared to the last auction, feeder steers sold $5-8 higher, with instances of sharply higher across all weight classes. Feeder heifers sold $3-8 higher, with instances of sharply higher across all weight classes. Benchmark steers averaging 722 lbs. sold for $281-300, averaging $293.90.
Texas: Lonestar Stockyards in Wildorado sold 1,344 head on Tuesday. Compared to the previous auction, feeder steers and heifers traded $2-7 higher. Steer and heifer calves suitable for grazing traded $5-10 higher, with instances of up to $20 higher on cattle under 500 lbs. A group of steers averaging 867 lbs. sold for $261. — Charles Wallace, WLJ contributing editor
