Wednesday markets
Cattle futures closed mixed on weaker cash trade in a light test.
Live cattle futures closed triple digits lower, with the December contract $1.92 lower to close at $225.27 and the February contract down $1.42 to $224.97.
“Following Monday’s sharp run-up, the live cattle complex is now back to trading in a more cautious manner as traders look around for support and reassurance,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments.
Cash trade was light, with 1,679 head sold. Live steers sold between $224-225, and dressed steers sold for $357.
On the formula side, 21,700 head averaging 955 lbs. sold for an average of 371.72.
“No cash cattle trade has developed yet, but asking prices are noted at $232 plus in the South, but asking prices in the North remain unestablished at this point,” Stewart wrote. “There’s a chance that trade could hold steady this week if the board remains supportive, as holiday demand is right around the corner.”
Today’s slaughter is estimated to be 122,000 head, 5,000 head above the prior week.
Boxed beef prices were lower on 183 loads, with the Choice cutout $4.77 lower to $374.45 and the Select cutout down 14 cents to $359.94.
Feeder cattle
Feeder cattle futures closed mixed, with the November contract $1.35 higher to close at $339.02 and the January contract down $1.67 to $327.47.
“It’s most likely that the reason why the deferred contracts are trading so much lower is because, in this volatile market, with time, looms risk,” Stewart said.
The CME Feeder Cattle Index was $1.61 lower to $342.76.
Corn futures were higher, with the December contract 3 cents higher to $4.35 and the March contract up 2 cents to $4.49.
Montana: Miles City Livestock in Miles City sold 2,166 head on Tuesday. Compared to the last auction, yearling steers and heifers were too lightly tested to develop any market trend. Steer calves 400-500 lbs. sold $10-15 lower in a very narrow comparison. Steer calves 500 lbs. and heavier sold mostly steady to $5 lower. Heifer calves 400-449 lbs. sold mostly $10-15 lower, and heifers over 450 lbs. sold mostly steady to $10 lower. A group of steers averaging 700 lbs. sold for $382.50.
Utah: Producers Livestock in Salina sold 2,091 head on Wednesday. Compared to the last auction, feeder steers sold $1-3 lower, and heifers were $3-10 lower. Benchmark steers averaging 735 lbs. sold for $338-347.50 and averaged $339.66.
Wyoming: Winter Livestock in Riverton sold 2,645 head on Tuesday. Compared to the previous auction, feeder steers were under pressure on an uneven market base, with instances of $5-10 lower on 400 lbs. calves. Feeder heifers under 500 lbs. sold $14-16 higher on uneven market, and over 500 lbs. sold steady to $3-5 lower. — Charles Wallace, WLJ contributing editor
