Wednesday markets
Traders were skeptical of the pressure on the equities market, and as a result, the livestock complex closed lower.
“Early Wednesday morning, the livestock complex was thriving as traders were pushing all three of the markets higher,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments. “But upon seeing the Dow Jones break and turn lower, the livestock contracts, including the live cattle market, all turned lower. The spot December contract broke resistance Wednesday morning before turning lower, which begs one question: Was the market’s turns solely because of external equity pressures? Or did traders also decide the market doesn’t have enough steam behind it to take on its current resistance thresholds? Time will tell, but for today, skepticism has settled into the marketplace.”
Live cattle futures were lower, with the October contract down 42 cents to $187.62 and the December contract down 25 cents to $187.87.
Cash trade was light, with just 280 head sold.
On the formula side, 18,600 head averaging 912 lbs. sold for an average of $299.26.
“Very few negotiated fed cattle have traded this week, and cattle feeders are confidently pricing cattle higher, many enthusiastically looking for $190/cwt or higher this week,” Cassie Fish, market analyst, wrote for The Beef. “The last time the cash averaged $190 or higher was the week ended August 11 when the 5-area average for steers was reported at $191.34.”
Today’s slaughter is estimated to be 124,000 head, 1,000 head lower than a week earlier.
Boxed beef prices were mixed on 136 loads, with the Choice cutout down $2.55 to $321.41 and the Select cutout up 97 cents to $295.77.
Feeder cattle
Feeder cattle futures closed also lower, with the October contract 85 cents to $248.57 and the November contract down $1.70 to $247.22. The CME Feeder Cattle Index was up 6 cents to $250.71.
“The spot January contract is back below its 100-day moving average as the market simply didn’t have the trader support it needed to sustain being above the market’s moving average,” Stewart wrote.
Corn futures were higher, with the December and March contracts up 2 cents to $4.19 and $4.32, respectively.
Texas: Lonestar Stockyards in Wildorado sold 1,332 head on Tuesday. Compared to the last auction, feeder steers and heifers traded mostly steady. Steer calves under 500 lbs. traded $5 higher. There were not enough comparable sales of heifer calves for a market trend. Benchmark steers averaging 740 lbs. sold for $252-253.50, averaging $253.48.
Wyoming: Winter Livestock in Riverton sold 4,860 head on Tuesday. Compared to the previous auction, steer and heifer calves 300-350 lbs. sold higher with instances sharply higher, 350-440 lbs. were under most pressure with instances $10-15 lower and over 450 lbs. traded steady to $4-7 higher. Yearling heifers sold $3-10 higher, and yearling steers were too lightly tested for an accurate comparison. A group of steers averaging 779 lbs. sold between $258.50-261.50, averaging $259.25. — Charles Wallace, WLJ contributing editor
