Wednesday markets
The cattle market traded mostly higher today, although feedlots are still holding out on cash trade, and few head have sold this week.
Live cattle futures closed mixed. The October contract gained 37 cents to close at $146.17, and the December contract lost 12 cents to close at $148.45.
There was barely any cash trade today, with only 1,868 head sold. Live steers sold from $146-148. Through Wednesday morning, only about 5,000 head had sold so far.
“Given that the market is up against resistance pressure, receiving support from the cash cattle market is inherently important right now,” wrote ShayLe Stewart, DTN livestock analyst, in her midday comments. “Thankfully the cash cattle market has yet to see any action develop as packers and feedlots are in a stiff standoff again this week.”
On the formula side, a total of 15,500 head averaging 873 lbs. sold for $232.22.
The national weekly direct beef type price distribution for the week of Oct. 3-10 was the following on a live basis:
• Negotiated purchases: $146.32.
• Formula net purchases: $146.43.
• Forward contract net purchases: $143.60.
• Negotiated grid net purchases: $146.44.
On a dressed basis:
• Negotiated purchases: $230.30.
• Formula net purchases: $232.32.
• Forward contract net purchases: $227.68.
• Negotiated grid net purchases: $229.86.
Slaughter for the day is estimated at 128,000 head, bringing the week’s total to 384,000 head.
Boxed beef prices were mixed on 128 loads. The Choice cutout lost 9 cents to close at $246.66, and the Select cutout gained $1.41 to close at $214.26.
“Wednesday’s WASDE report shared mostly supporting news to the beef and cattle markets. Beef production for 2022 was raised as both the third and fourth quarters expect larger production than what was originally anticipated a month ago,” Stewart said. “This hike in production stems from aggressive throughput in the packing sector, along with heavier carcass weights.”
Feeder cattle
“The feeder cattle market was holding its breath ahead of the release of Wednesday’s WASDE report but upon seeing support for the live cattle complex and no wild changes for the corn complex, it deemed higher trade plausible,” Stewart continued.
Feeder cattle futures saw some slight gains. The October contract gained 42 cents to close at $175.50, and the November contract gained 47 cents to close at $176.67.
The CME Feeder Cattle Index gained 40 cents to close at $175.04.
Corn futures traded sideways, with the December contract unchanged at $6.93 and the March contract down less than a penny to $7.
South Dakota: Philip Livestock Auction in Philip sold 4,893 head on Tuesday. Compared to a week earlier, feeder steers 400-500 lbs. sold steady to $4 higher, 500-650 lbs. sold $2-5 higher and over 700 lbs. sold steady. Feeder heifers under 400 lbs. sold $5 higher, 400-450 lbs. sold steady, 450-500 lbs. sold $4 lower, 500-600 lbs. sold $4 higher and 600-650 lbs. sold $4 lower. — Anna Miller, WLJ managing editor
