Wednesday markets
The cattle complex closed mostly higher, buoyed by higher Choice cutout prices and less market resistance.
“It’s a quieter day today in CME cattle futures, the market adding modestly to yesterday’s gains after a sharp early break,” Cassie Fish, market analyst, wrote for The Beef. “Today is seeing lighter volume and less volatility.”
Live cattle futures were higher, with the April contract up 80 cents to $207.07 and the June contract up 70 cents to $203.02.
Cash trade was light, with 1,455 head sold for $213.
On the formula side, 20,400 head averaging 908 lbs. sold for an average of $329.87.
Today’s slaughter is estimated at 123,000 head, 34,000 head above the prior week when production was lower due to weather.
“Yesterday saw enormous gains in the USDA Choice cutout value, which continued this morning, albeit at a lesser jump,” Fish wrote. “Since Monday’s close, Choice boxes have gained $10/cwt, printing this morning at $337.96, the highest for any March and the highest for any year since 2021. This rally is improving packer margins hourly and though it may be early from a seasonal perspective to maintain such powerful velocity, it is 2025, the year that continues to contain multiple surprises.”
Boxed beef prices were higher on 140 loads, with the Choice cutout up $3.11 to $338.30 and the Select cutout up $2.48 to $316.53.
Feeder cattle
Feeder cattle futures were mixed, with the March contract down 17 cents to $286.80 and the April contract up $1.02 to $285.87. Deferred contracts closed higher.
The CME Feeder Cattle Index was up 26 cents to $287.25.
“Demand has been incredible this week again for both feeder cattle and calves, with undeniable demand being noted for cattle that are suitable for grass,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments. “Buyers know that the closer time gets to turn out season, the more expensive these types of cattle are going to become.”
Corn futures were lower, with the May and July contracts down 6 cents to $4.51 and $4.59, respectively.
Colorado: Winter Livestock in La Junta sold 486 head on Tuesday. Compared to the last auction, feeder steers under 600 lbs. sold mostly $2-4 higher and over 600 lbs. sold $3-4 lower. Feeder heifers sold mostly $1-5 higher, with instances of sharply higher across all weight classes. A group of steers averaging 726 lbs. sold for $290.
Texas: Lonestar Stockyards in Wildorado sold 1,102 head on Tuesday. Compared to the last auction, feeder steers and heifers traded mostly steady to $2 higher. — Charles Wallace, WLJ contributing editor
