Wednesday markets
With a lack of fundamental support, cattle futures closed triple digits lower.
Live cattle futures closed lower, with the October contract down $2.62 to $227.37 and the December contract $3.52 lower to $227.32.
“Without any fed cash cattle trade having developed yet, and with morning boxed beef prices being lower, it doesn’t come as a real surprise to see the live cattle contracts trading lower,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments.
Cash trade was moderate, with 11,870 head sold. Live steers sold from $224-225, and dressed steers sold between $348-365. On the formula side, 16,700 head averaging 947 lbs. sold for an average of $364.91.
Today’s slaughter is estimated to be 109,000 head, 1,000 head below last week.
Boxed beef prices were lower on 107 loads, with the Choice cutout down $3.22 to $369 and the Select cutout $3.60 lower to $355.25.
Feeder cattle
Feeder cattle futures also closed triple digits lower, with the October contract down $1.37 to $351.52 and the November contract $3.27 lower to $346.75.
“Today’s slight pull back isn’t traders saying, ‘we regret pushing the market to this level,’ but rather instead that they desire to see greater support before they can confidently push the contracts any higher,” Stewart wrote.
The CME Feeder Cattle Index closed $2.12 higher to $350.67.
Corn futures closed lower, with the December contract down 3 cents to $4.51 and the March contract 2 cents lower to $4.64.
Montana: Miles City Livestock in Miles City sold 3,439 head on Tuesday. Compared to the last auction, steer calves 400-499 lbs. sold sharply higher, with most sales $20-40 higher and 500 lbs. and heavier sold mostly $5-10 higher. Heifers 400-499 lbs. sold mostly steady, 500-549 lbs. sold steady to $5 lower, and over 550 lbs. sold $5-10 lower. A group of unweaned steers averaging 720 lbs. sold for $374.50.
Utah: Producers Livestock in Salina sold 2,833 head on Tuesday. Compared to the last auction, feeder steers sold unevenly steady and heifers sold $8-18 lower. Benchmark steers averaging 724 lbs. sold for $335-355, averaging $346.95. — Charles Wallace, WLJ contributing editor
