Wednesday markets
Cattle futures saw strong triple-digit gains and perceived bargain hunting, following what DTN livestock analyst ShayLe Stewart said were comments by Agriculture Secretary Brooke Rollins on the Lonesome Lands podcast about reopening the Mexico border.
Stewart noted several key points from the interview, including Rollins’ explanation that when the U.S.–Mexico border reopens, ports will come back online gradually, with Arizona likely reopening first, and that “you will not see 1 million head of cattle show up overnight.” Rollins also emphasized that there is no agricultural industry she is more bullish about than cattle.
Live cattle futures closed sharply higher, with the December contract up $4.02 to close at $211.02 and the February contract $5.60 higher to $212.92.
Cash trade was light, with 2,896 head sold for $207-208.
On the formula side, 20,100 head averaging 957 lbs. sold for an average of $358.59.
Today’s slaughter is estimated to be 124,000 head, 4,000 head above the prior week.
USDA’s National Weekly Fed Cattle Comprehensive report showed carcass weights were 1 lb. higher from the previous week to 957.4 lbs. Quality grade was up 0.2% from the previous week to 85.2%.
Boxed beef prices were lower on 175 loads, with the Choice cutout down $1.81 to $368.28 and the Select cutout 42 cents lower to $355.51.
Feeder cattle
Feeder cattle futures closed over $8 higher, with the November contract up $8.05 to $315.12 and the January contract $8.17 higher to close at $309.05.
The CME Feeder Cattle Index was $4.41 lower to $331.97.
Corn futures also saw gains, with the December contract 8 cents higher to $4.31 and the March contract up 7 cents to $4.45.
Colorado: Winter Livestock in La Junta sold 554 head on Tuesday. Compared to the last auction, feeder steers sold $3-5 lower, with instances of sharply lower across all weight classes. Feeder heifers sold unevenly steady across all weight classes. A group of unweaned steers averaging 620 lbs. sold for $340.
Montana: Miles City Livestock in Miles City sold 924 head on Tuesday. Compared to the previous auction, yearling steers and heifers were too lightly tested at the last sale to develop any market trend. Steer and heifer calves were too lightly tested in any particular weight class to develop an accurate market trend, but sharply lower undertones were noted, with most sales $25-40 lower on steers and $20-30 lower on heifers. A group of steers averaging 737 lbs. sold for $327. — Charles Wallace, WLJ contributing editor
