Wednesday markets
Cattle futures are experiencing a downturn, plunging limit lower as shattered confidence drives the cattle complex.
“CME cattle futures are in the midst of a serious and historic meltdown,” wrote Cassie Fish, market analyst, in The Beef. “Since topping on October 16, most active December LC and dropped 11.2% and November FC is down 14.9%.”
Live cattle closed limit down, with the December and February contracts $7.25 lower to close at $220.52 and $218.12, respectively.
Cash trade was active, with 39,602 head sold. Live steers sold for $225-232, and dressed steers sold between $355-365.
According to ShayLe Stewart, DTN livestock analyst, in her midday comments, “Northern dressed deals are being marked at $360, which is $2 higher than last week’s weighted average, but Southern live cattle are trading at $232, which is $4 lower than last week’s weighted average. But upon seeing the board drift sharply lower, bids have been knocked lower as packers are now just offering $357 to $358 for dressed cattle and $225 for live.”
On the formula side, 29,800 head averaging 929 lbs. sold for an average of $376.80.
Today’s slaughter is estimated to be 117,000 head, 2,000 head lower than the previous week.
Boxed beef prices were mixed on 117 loads, with the Choice cutout 68 cents higher to $378.26 and the Select cutout $1 lower to $360.25.
Feeder cattle
Feeder cattle also closed limit lower, with the November and January contracts $9.25 lower, closing at $325.72 and $319.97, respectively.
“Right now, the market appears to be on a mission to find a tradeable low. Just how low the market will go is up for debate by traders and chart technicians—though no one really knows until the market has actually gotten there,” Fish wrote.
The CME Feeder Cattle Index was $3.46 higher to $346.79.
Corn futures closed higher, with the December contract 3 cents higher to close at $4.35 and the March contract up 4 cents to $4.49.
Montana: Miles City Livestock in Miles City sold 3,290 head on Tuesday. Compared to the previous auction, yearling steers and heifers were too lightly tested to develop any market trend. Steer calves under 450 lbs. sold sharply higher, with most sales $50-60 higher, 450-549 lbs. sold $20-25 higher, and over 550 lbs. sold steady to $5 higher. Heifer calves under 550 lbs. sold sharply higher, with most sales $15-25 higher, and over 550 lbs. sold mostly $10 higher. A lot of unweaned steers averaging 675 lbs. sold for $375-397 and averaged $390.21.
Utah: Producers Livestock in Salina sold 2,043 head on Wednesday. Compared to the last auction, feeder cattle sold sharply higher on calves and yearlings. Benchmark steers averaging 714 lbs. sold for $345-361 and averaged $352.63.
Wyoming: Winter Livestock in Riverton sold 3,388 head on Tuesday. Compared to the previous auction, yearlings sold $11-15 higher, with instances of $17-22 higher. Feeder steers calves under 600 lbs. traded sharply higher, with instances of $35-65 higher, and over 600 lbs. sold up to $30 higher. Heifer calves sold $2-12 higher, with instances of $15-22 higher. Heifer calves weighing 550 lbs. sold unevenly steady, with instances of $10 lower. A group of steers averaging 674 lbs. sold for $354.50-376.25, averaging $367.28. — Charles Wallace, WLJ contributing editor
