Wednesday markets
Cattle futures have extended their rally today, closing triple digits higher.
Live cattle futures climbed triple digits, with the April contract up $1.90 to $196.55 and the June contract up $2.62 to $192.70.
“The live cattle complex is trading higher again today as traders have thankfully let the live cattle contracts continue to venture higher despite trade tensions being high right now,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments. “But given that the live cattle complex has traded mostly lower since the market scored a new high late in January, it’s likely traders believe the market has seen enough price correction recently and doesn’t need to endure any more immediate downside pressure.”
Cash trade was light, with 815 head sold for $197.
On the formula side, 28,200 head averaging 901 lbs. sold for an average of $319.72.
“Fundamentally, packers remain red, even though boxed beef prices have improved to the best levels since mid-February,” Cassie Fish, market analyst, wrote in The Beef. “After some negotiated fed cattle trade yesterday $2 lower than a week ago, today’s Fed Cattle exchange saw over 400 head sell at $197 in Texas, steady with last week and one small group for $198.50. Not all packers will be as willing to cave in given state of margins. All this is giving hopes that the five consecutive week decline in negotiated fed cattle prices is slowing.”
Today’s slaughter is estimated to be 120,000 head, 2,000 head below a week earlier.
Boxed beef prices were lower on 173 loads, with the Choice cutout down $1.33 to $313.54 and the Select cutout down $1.49 to $302.53.
Feeder cattle
Feeder cattle futures also closed higher, with the March contract up $2.25 to $276.10 and the April contract up $3.57 to $276.07.
The CME Feeder Cattle Index was down $1.83 to $278.75.
“Although the feeder cattle complex was pressured earlier this week, it seems as though traders are finding comfort in Wednesday’s trade, as it’s helpful the live cattle contracts are trading higher,” Stewart wrote.
Corn futures were higher, with the March and May contracts gaining 4 cents to $4.40 and $4.55, respectively.
Colorado: Winter Livestock in La Junta sold 1,575 head on Tuesday. Compared to the last auction, feeder steers under 500 lbs. sold $2-7 lower. Steers between 500-650 lbs. sold $1-5 higher and over 650 lbs. sold $4-5 lower. Feeder heifers under 550 lbs. sold mostly $1-6 lower and over 550 lbs. sold $3-7 higher, with instances of sharply higher. A group of steers averaging 760 lbs. sold for $265.50-277, averaging $275.06.
Montana: Miles City Livestock in Miles City sold 1,198 head on Tuesday. Compared to the previous auction, feeder steers under 600 lbs. sold steady to $10 higher and over 600 lbs. were too lightly tested to develop an accurate market trend. All weights of feeder heifers sold $5-10 higher in a narrow comparison. A group of steers averaging 771 lbs. sold for $281.50.
Texas: Lonestar Stockyards in Wildorado sold 1,705 head on Tuesday. Compared to the last auction, feeder steers and heifers traded mostly $1-5 higher. Calves were too lightly tested last week for a market trend. Benchmark steers averaging 770 lbs. sold for $270-275.50, averaging $274.42. — Charles Wallace, WLJ contributing editor
