Wednesday markets
Cattle futures pulled back after hitting record highs Tuesday, a move analysts say reflects overbought market conditions.
“More than anything, it seems as though traders are cautious about overly supporting the complex more than they already have; traders could also be waiting to see what happens in the North for fed cash cattle trade,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments.
Live cattle futures were lower, with the June contract down $1.15 to $212.52 and the August contract down $1 to $208.37.
Cash trade was moderate, with 8,484 head sold. Live steers sold for $219-225, and dressed steers sold between $353-360.
On the formula side, 26,000 head averaging 902 lbs. sold for an average of $345.58.
“Somewhat surprisingly, the southern negotiated fed cattle market continued to trade yesterday afternoon and again this morning,” Cassie Fish, market analyst, wrote in The Beef. “Prices averaged $1 to $2 higher at new all-time highs for Texas and Kansas. The North has been quiet thus far and cattle are priced higher than last week’s all-time high. The packer cannot slow the ascent of cash prices without owning a hefty number of cattle, while at the same time, limiting throughput.”
Today’s slaughter is estimated to be 119,000 head, 2,000 head below a week earlier.
Boxed beef prices were higher on 102 loads, with the Choice cutout up $1.48 to $346.15 and the Select cutout up $1.03 to $334.
Feeder cattle
Feeder cattle futures were lower, with the May contract down $1.25 to $294.45 and the August contract down 60 cents to $298.60.
The CME Feeder Cattle Index was up 38 cents to $293.78.
Corn futures were also lower, with the May and June contracts down 6 cents to $4.41 and $4.49, respectively.
Texas: Lonestar Stockyards in Wildorado sold 541 head on Tuesday. There were not enough comparable sales for an accurate comparison, but a higher undertone was noted. A group of steers averaging 712 lbs. sold for $300.
Utah: Producers Livestock in Salina sold 462 head on Tuesday. Compared to the last auction, feeder steers and heifers sold unevenly steady on limited comparable sales, but a higher undertone was noted. Benchmark steers averaging 763 lbs. Sold for $283-294, averaging $290.15. — Charles Wallace, WLJ contributing editor
