Wednesday markets
Cattle futures closed higher on optimism of steady to higher cash trade and strong boxed beef prices.
“The live cattle complex is feeling lively as the market is excited to note the $6.02 jump in Choice cuts, which has helped traders feel confident about their decision to push the spot June contract above the market’s resistance at $201,” ShayLe Stewart, DTN livestock analyst, wrote in the midday comments.
Live cattle futures were higher, with the April contract up $1.45 to $206.82 and the June contract up $1.85 to $202.85.
Cash trade was light, with 138 head sold.
On the formula side, 20,300 head averaging 899 lbs. sold for an average of $315.84.
“There has been little negotiated fed cattle trade so far this week as packers lay low, still deep in red ink,” Cassie Fish, market analyst, wrote in The Beef. “Less than 600 cattle have traded so far this week at generally steady money. Cattle feeders are pricing cattle higher than last week’s $205 average and are in no hurry to sell. Extremely high replacement costs, combined with the dynamic rally in futures and wholesale beef prices are all giving cattle feeders plenty of reasons to hold firm.”
Today’s slaughter is estimated to be 96,000 head, 27,000 head below a week earlier.
Boxed beef prices were mixed on 110 loads, with the Choice cutout up $6.29 to $329.61 and the Select cutout down 55 cents to $308.68.
Feeder cattle
Feeder cattle also closed higher, with the March contract up $1.85 to $286.82 and the April contract up $2.17 to $286.72.
The CME Feeder Cattle Index was up 84 cents to $284.11.
“With the spring season set to officially begin Thursday, buyer demand in the countryside has been even more aggressive this week than last week, as buyers know that supplies will run thin the closer time gets to turn out season,” Stewart wrote.
Corn futures were higher, with the March contract up 3 cents to $4.62 and the May contract up a penny to $4.69.
Montana: Miles City Livestock in Miles City sold 1,829 head on Tuesday. Compared to the last auction, feeder steers were all too lightly tested either this week or last week to develop an accurate market trend, but higher undertones were noticed. Feeder heifers were too lightly tested either this week or last week to develop an accurate market trend, but steady to higher undertones were noticed. Benchmark steers averaging 754 lbs. sold between $291-300.50, averaging $299.61.
Texas: Lonestar Stockyards in Wildorado sold 1,646 head on Tuesday. Compared to the last auction, all classes of steers and heifers traded $2-4 higher. Benchmark steers averaging 708 lbs. sold for $296-300, averaging $299.51. — Charles Wallace, WLJ contributing editor
