Wednesday markets
Cattle futures reversed course after trading higher, taking back some of Monday’s gains.
Futures have turned lower on the day and may post yet another key reversal. None of these have mattered as of late,” Cassie Fish, market analyst, wrote in The Beef. “The market has not closed under the 10-day moving average in over a month. Futures are overbought and due for a correction at some point, any technician will tell you. Whether something more significant is in the making remains to be seen.”
Live cattle futures closed lower, with the June contract down $2.37 to $213.95 and the August contract down $2.25 to $209.37.
Cash trade was light, with 1,538 head sold. Live steers sold for $229, and dressed steers sold between $355-358.
On the formula side, 25,800 head averaging 908 lbs. sold for an average of $351.35.
“Just a few cattle traded in the North at $360 dressed, steady with last week,” the Cattle report wrote. “Asking prices in the South are $224-225 and higher in the North. There will be more development today on the bid/ask side and not necessarily executed transactions.”
Today’s slaughter is estimated to be 119,000 head, the same as a week prior.
Boxed beef prices were mixed on 129 loads, with the Choice cutout down 74 cents to $349.36 and the Select cutout up $1.38 to $335.85.
Feeder cattle
Feeder cattle futures also closed triple digits lower, with the May contract down $3.25 to $299.57 and the August contract down $4.02 to $301.97.
The CME Feeder Cattle Index was up $1.37 to $302.40.
Nearby corn futures closed, while other contracts were lower. The May contract was up 2 cents to $4.38, and the July contract was up 3 cents to $4.45.
Texas: Lonestar Stockyards in Wildorado sold 994 head on Tuesday. Compared to the previous auction, Feeder steers and heifers traded $4-5 higher. Steer and heifer calves traded sharply higher, with instances of $20 higher on calves suitable to turnout on summer grass. A group of steers averaging 652 lbs. sold for $345.
Utah: Producers Livestock in Salina sold 649 head on Wednesday. Compared to the last auction, feeder steers sold $7-12 higher, while feeder heifers sold $9-14 lower. Benchmark steers averaging 730 lbs. sold for $300-322.50, averaging $306.35. — Charles Wallace, WLJ contributing editor
