Wednesday markets
Cattle futures rallied for a second day, with feeder cattle gaining triple digits. Cash trade is beginning to develop for the week at mostly steady.
Live cattle closed higher, with the December contract up 40 cents to $153.07 and the February contract up 87 cents to $155.67.
“Live cattle futures are following along with the livestock sector’s generally bullish mood, with a relatively active volume of futures trade for a Wednesday morning,” ShayLe Stewart, DTN livestock analyst, wrote in the midday comments.
Cash trade was active, with 18,300 head selling between $155-157, averaging $155.98. Trade has been reported in parts of the South at $155, fully steady with last week’s weighted averages. A few live bids have been noted in Nebraska between $156-157. In the western Corn Belt, live and dressed purchases traded from $155-157 and at $245, respectively.
“The Fed Cattle Exchange Auction held today reported seven lots (all in TX), totaling 1,506 head of cattle, none of which sold. Opening prices were at $153, and high bids ranged from $155 to $155.25, but none met reserve prices of $155.50 to $156,” Stewart wrote.
On the formula side, 23,200 head averaging 867 lbs. sold for an average of $246.58.
Slaughter for today is expected to be 128,000 head, 1,000 head below last week.
Boxed beef prices closed mixed on 190 loads, with the Choice cutout up 14 cents to $254.88 and the Select cutout down 81 cents to $225.01.
Feeder cattle
Feeder cattle closed higher, with the January contract up $2.47 to $180.47 and the March contract up $2.27 to $183.45. The CME Feeder Cattle Index was down 45 cents to $178.40.
“Feeder cattle are posting impressive gains so far Wednesday, but these may merely be a feature of spotty trading volume and lots of room on the chart for contracts to move back higher without encountering sell orders,” Stewart wrote.
Corn closed lower, with the December contract down 3 cents to $6.62 and the March contract down 2 cents to $6.67.
Colorado: Winter Livestock in La Junta sold 4,580 head Tuesday. Compared to the last auction, steer calves sold steady to $3 higher, except for 500-600 lb. preconditioned weaned calves, which were $8-10 higher. Heifer calves under 500 lbs. that were preconditioned and weaned for 45 days or longer sold $10-12 higher, and over 500 lbs. were steady to $2 higher. Yearling feeder steers sold steady to $2 higher, and yearling feeder heifers were mostly steady. Benchmark steers averaging 720 lbs. sold between $170-179, averaging $175.65.
Montana: Miles City Livestock Commission Auction in Miles City sold 3,002 head Tuesday. Compared to the previous auction, steer calves under 550 lbs. sold mostly $8-10 higher, and steers over 550 lbs. generally sold steady. Heifer calves under 450 lbs. sold mostly $5 lower, and heifers over 450 lbs. sold mostly $3-6 higher. A group of unweaned steers averaging 667 lbs. sold between $182-186 and averaged $184.58.
Texas: Lonestar Stockyards in Wildorado sold 1,521 head Tuesday. Compared to the last auction, feeder steers and heifers traded $2-5 higher. Steer and heifer calves traded mostly firm to $2 higher, with instances of up to $8 higher on long-weaned cattle. Benchmark steers averaging 730 lbs. sold between $174-180 and averaged $178.52. — Charles Wallace, WLJ editor
