Wednesday markets
Cattle futures climbed after confirmation that no date has been set for reopening the U.S.-Mexico border to cattle imports, following a video conference between Mexico’s agriculture minister and USDA Secretary Rollins.
Live cattle futures closed triple digits higher, with the October contract $3.90 higher to close at $231.40 and the December contract $4.32 higher to $231.07.
Cash trade was nonexistent, with only 34 head sold—not enough for a market trend.
On the formula side, 21,900 head averaging 932 lbs. sold for an average of $378.53.
“No new trade has developed in the fed cash cattle market, following the light business that developed Monday afternoon,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments. “So far this week, there’s been some cattle traded in the North at $360, which is $9 lower than the previous week’s weighted average. There is a chance that if the board continues to trade higher, the fed cash cattle market may see prices better than those traded on Monday. Asking prices range anywhere from $234-240 in the South and are still not established in the North.”
Today’s slaughter is estimated to be 119,000 head, 1,000 head above the prior week.
Boxed beef prices were higher on 137 loads, with the Choice cutout $1.73 higher to $381.38 and the Select cutout up $1.79 to $361.79.
Feeder cattle
Feeder cattle also climbed higher, with the October contract $3.77 higher to close at $347.87 and the November contract $8.67 higher to $342.75.
“The feeder cattle complex saw the headline it needed to see to begin to put fear behind it and again trade higher,” Stewart wrote. “Upon receiving confirmation that the US intends to keep its border closed and does not have a date pinned down for when it intends to see the border reopened to allow Mexican cattle to be imported into the U.S., the feeder cattle complex can now again breathe easy.”
The CME Feeder Cattle Index was $7.30 lower to $360.25.
Corn futures closed slightly higher, with the December contract up 2 cents to $4.34 and the March contract up a fraction to close at $4.46.
Colorado: Winter Livestock in La Junta sold 1,332 head on Tuesday. Compared to the last auction, yearling steers sold sharply lower across all weight brackets. Yearling heifers were too lightly tested for an accurate trend. A group of steers averaging 759 lbs. sold for $319.
Montana: Miles City Livestock in Miles City sold 4,752 head on Tuesday. Compared to the last auction, yearling steers and heifers were too lightly tested to develop any market trend. Steer calves under 550 lbs. sold sharply lower, with most sales $50-70 lower, and over 550 lbs. sold sharply lower, with most sales $30-45 lower. Heifer calves under 550 lbs. sold sharply lower, with most sales $50-70 lower, and over 550 lbs. sold $25-35 lower. A load of steers averaging 657 lbs. sold for $370-393 and averaged $384.73.
Utah: Producers Livestock in Salina sold 2,533 head on Wednesday. Compared to the previous auction, feeder cattle sold sharply lower on calves and yearlings, with 650 lbs. steers selling $5 higher. Benchmark steers averaging 725 lbs. sold for $283-366, averaging $336.03.
Wyoming: Winter Livestock in Riverton sold 3,912 head on Tuesday. Compared to the last auction, feeder calves were under pressure, with sharp declines across all classes. Benchmark steers averaging 725 lbs. sold for $310-335 and averaged $323.37. — Charles Wallace, WLJ contributing editor
