Wednesday markets
Cattle futures closed higher after a rough start to the week.
“Today, CME cattle futures have seemingly completely shaken off politics and returned its focus to a continued strong cash fed cattle market,” wrote Cassie Fish, market analyst, in The Beef. “Fed cattle supplies are epically tight and packers remain committed to maintaining cattle inventory.”
Live cattle futures closed higher, with the June contract up $5.10 to $252.80 and the August contract $5.40 higher to $246.47.
Cash trade was moderate, with 8,397 head sold. Live steers sold for $260-263, and dressed steers sold between $405-410.
On the formula side, 21,000 head averaging 944 lbs. sold for an average of $405.22.
“Bids have been renewed in the cash market, but at this point, no new trade has developed following the light business that happened earlier in the week,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments. “More is expected later in the week. So far this week, Southern live cattle have traded at $260, which is $3 higher than last week’s weighted average, and Northern dressed cattle have traded at mostly $400, which is $2-3 lower than last week’s weighted average.”
Today’s slaughter is estimated to be 108,000 head, the same as the previous week.
Boxed beef prices were lower on 118 loads, with the Choice cutout down $2.05 to $388.68 and the Select cutout $2.69 to $388.58.
“Retail beef price data was released yesterday afternoon and is grabbing headlines, with all-fresh beef unchanged at $9.64/lb., up 13.4% above a year ago,” Fish wrote. “Price inflation is rampant right now, driven by the energy price spike and services inflation. So, beef isn’t alone.”
Feeder cattle
Feeder cattle futures also climbed higher, with the May contract up $1.42 to $367.32 and the August contract $4.37 higher to $360.92.
Corn futures closed on both sides of steady, with the May contract down a fraction to $4.66 and the July contract up a fraction at $4.80.
Texas: Lonestar Stockyards in Wildorado sold 894 head on Tuesday. There were not enough comparable sales on steers or heifers for a market trend, but a lower undertone was noted. A group of steers averaging 789 lbs. sold for $364.
Utah: Producers Livestock in Salina sold 435 head on Tuesday. An accurate comparison could not be made, but heifers were selling unevenly steady on calves and yearlings. Benchmark steers averaging 728 lbs. sold for $375-397, averaging $386.44. — Charles Wallace, WLJ contributing editor
