Wednesday markets
The livestock complex closed mixed as cash trade has yet to materialize and will probably occur tomorrow.
Live cattle closed mixed, with the October contract down 22 cents to $151.45 and the December contract up 27 cents to $153.57.
“CME cattle futures are in modest correction mode after the recent breakout to new contract highs,” Cassie Fish, market analyst for The Beef, wrote. “The other big news here is that open interest has increased a whopping 20k contracts in the last three trading days, likely indicating an increase in managed fund length and commercial selling. Friday’s Commitment of Traders’ report will shed some light here.”
Cash trade has yet to develop, with 910 head selling between $151-152.
“The cash cattle market hasn’t seen any action develop yet and with feedlots gunning for higher prices again this week, it’s likely that the market doesn’t see any attention until Thursday,” ShayLe Stewart, DTN livestock analyst, wrote in the midday comments. “Asking prices in the South are noted at $151-152, but are still undeveloped in the North.”
On the formula side, 18,300 head averaging 880 lbs. sold for $236.30.
Slaughter is expected to be 129,000 head, 2,000 head above last week.
Boxed beef closed mixed on 150 loads, with the Choice cutout down 57 cents to $260.86 and the Select cutout up $1.25 to $228.60.
USDA’s National Agricultural Statistics Service released the latest Cold Storage report, showing the total pounds of beef in freezers were up 2% from the previous month to 470 million lbs., up 19% from last year.
Feeder cattle
Feeder cattle closed mixed, with the October contract down 17 cents to $176.42 and the November contract up 90 cents to $178.82. The CME Feeder Cattle Index was up 11 cents to $174.96.
“Throughout Tuesday’s afternoon, sale barns saw a little more interest as buyers are realizing that there are fewer cattle to be had this fall and are starting to get worried about procuring all the cattle they’d hoped to get,” Stewart said. “Even so, they’ve got to get them bought right in order to break even.”
Corn closed modestly lower, with the December and March contracts down a penny to $6.85 and $6.90, respectively.
The Crop Progress report showed 61% of corn was harvested as of Oct. 23, up 16 percentage points from the previous week. The report also shows 79% of winter wheat was planted and 49% has emerged.
Colorado: Winter Livestock in La Junta sold 1,531 head Tuesday. There was not a trend available due to the lack of receipts from the prior week, but a higher undertone was noted. A group of steers averaging 812 lbs. sold between $169.50-177.25 and averaged $175.39.
Texas: Lonestar Stockyards in Wildorado sold 1,579 head Tuesday. Compared to the last auction, feeder steers traded firm to $4 higher. There were not enough comparable sales on feeder heifers for a market trend. Steer and heifer calves traded mostly $2-5 higher, with the exception of steers weighing under 400 lbs., which traded $2 lower. A group of unweaned steers averaging 702 lbs. sold for $156.
Wyoming:Winter Livestock in Riverton sold 4,344 head Tuesday. There was a light offering on yearlings, so a comparison could not be made. Steers under 500 lbs. sold steady, with instances of $4-8 higher, and 500-700 lbs. were steady to $8-10 higher, with instances of $15-16 higher. Heifer calves sold with higher overtones, with instances of $2-6 higher. The best advances were on 550-590 lb. replacement heifers, with instances of $15 higher. Benchmark steers averaging 716 lbs. sold between $161-174.50, averaging $168.22. —Charles Wallace, WLJ editor
