Wednesday markets
Cattle futures were mixed on a quiet trading day, with boxed beef prices and grain futures closing lower.
Live cattle futures were slightly lower, with the December contract down 37 cents to $184.02 and the February contract down 5 cents to $186.07.
“CME cattle futures are spending another quiet, choppy and inconclusive day with the most active live cattle futures contracts sandwiched between long and short-term moving averages,” Cassie Fish, market analyst, wrote for The Beef. “CME cattle futures are technically oversold after a significant recent sell-off, though the market thus far is finding staging a meaningful rally difficult.”
Cash trade was moderate, with 3,127 head sold. Dressed steers sold for $290.
On the formula side, 19,200 head averaging 906 lbs. sold for an average of $304.23.
Today’s slaughter is expected to be 125,000 head, the same as a week earlier.
“This week’s slaughter has been reduced, down 11k WTD already and is estimated at 605k to 610k head,” Fish wrote. “Choice boxed beef values have declined $14/cwt this month from the last day of October. The Select cutout topped 8 days prior to the choice and has dropped over $15/cwt to the lowest price since January. Packers have been forced to slow production this week in an attempt to minimize red ink. The slide south in boxed beef prices have slowed this week but the outlook is for more decline.”
Boxed beef prices were lower on 134 loads, with the Choice cutout down $1.33 to $306.94 and the Select cutout down $1.26 to $278.66.
Feeder cattle
Feeder cattle were mixed, with the November contract down 35 cents to $246.47 and the January contract up 7 cents to $243.65. The CME Feeder Cattle Index was down 62 cents to $249.02.
“The market continues to rally thanks to the added support of trader interest, but if the fed cash cattle market can trade steady, the contracts may be able to push even higher later this week once trade develops,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments.
Corn futures followed other grain commodities and closed lower. The December and March contracts were down 2 cents to $4.26 and $4.37, respectively.
Montana: Miles City Livestock Commission in Miles City sold 3,502 head on Tuesday. Compared to the last auction, steer calves under 500 lbs. sold mostly $10-20 higher, 500-649 lbs. sold mostly $5-10 higher and steers over 650 lbs. were not well compared. Heifers 400-549 lbs. sold mostly $10-15 higher, and heifers over 550 lbs. were too lightly tested to develop an accurate market trend, but steady to firm undertones were noticed. Yearling offerings were not well compared for an accurate trend. A group of unweaned steers averaging 714 lbs. sold for $250-256, averaging $254.64.
Wyoming: Winter Livestock in Riverton sold 3,008 head on Tuesday. Compared to the last auction, feeder steers sold mostly steady, with 350-395 lbs. and 605-645 lbs. sold with instances of $7-9 higher. Heifer calves under 500 lbs. sold mostly steady, with 500-545 lbs. and 600-625 lbs. sold with instances of $5-6 higher. Yearling heifers over 765 lbs. sold $2-3 higher. Benchmark steers averaging 723 lbs. sold for $250-256.50, averaging $251.61. — Charles Wallace, WLJ contributing editor
