Wednesday markets
Live and feeder cattle futures lost some of yesterday’s gains as traders were leery of the government shutdown.
Live cattle futures closed slightly lower, with the October contract down 75 cents to $231.10 and the December contract 27 cents lower to close at $234.50.
Cash trade was moderate, with 8,677 head sold. Live steers sold for $227-230, and dressed steers sold between $358-360.
On the formula side, 23,000 head averaging 927 lbs. sold for an average of $379.23.
“Still no cash cattle trade has developed, but asking prices are now noted in the South at $237 to $240, but are still elusive in the North,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments. “With no packer interest having developed yet, it’s likely the week’s trade will be delayed another day, if not two.”
Today’s slaughter is estimated to be 115,000 head, 5,000 head below a week earlier.
Boxed beef prices were lower on 151 loads, with the Choice cutout $2.56 lower to $368.47 and the Select cutout down 36 cents to $346.89.
“Beef demand will improve seasonally from now until the holidays, though some parts of the carcass will fade the remainder of the year,” Cassie Fish, market analyst, wrote for The Beef. “It’s the rib that dominates the beef trade and the degree of its Q4 rally will inform the bottom line for packers. End users don’t want to be left out, and competition will likely be fierce at record high prices.”
Feeder cattle
Feeder cattle futures also closed lower, with the October contract down $2.05 to $358.97 and the November contract $1.75 to close at $357.60.
The CME Feeder Cattle Index was $2.28 lower to $365.33.
After trading in the red for most of the day, corn futures closed slightly higher, with the December contract up a penny to $4.16 and the March contract up a fraction to close at $4.32.
Colorado: Winter Livestock in La Junta sold 1,263 head on Tuesday. Compared to the previous auction, feeder steers under 650 lbs. sold mostly sharply higher and over 650 lbs. sold $3-5 lower. Feeder heifers under 600 lbs. sold sharply higher and over 600 lbs. sold $1-3 lower. Benchmark steers averaging 724 lbs. sold for $361-376 and averaged $368.70.
Utah: Producers Livestock in Salina sold 1,787 head on Wednesday. Compared to the last auction, feeder cattle sold unevenly steady on calves and yearlings. Benchmark steers averaging 724 lbs. sold between $352.50-362.50, and averaged $356.06.
Wyoming: Winter Livestock in Riverton sold 1,486 head on Tuesday. Compared to the previous auction, yearlings steers sold mostly steady, and heifers traded higher, with instances of $10-12 higher. Benchmark steers averaging 746 lbs. sold for $375. — Charles Wallace, WLJ contributing editor
