Wednesday markets
“The livestock complex is heading into Wednesday’s afternoon fully higher as the market welcomes traders’ interest and hopes that follow-through fundamental support reaches the markets Wednesday afternoon,” wrote ShayLe Stewart, DTN livestock analyst, in her midday comments.
Live cattle futures were higher, with the October contract up 47 cents to $144.67 and the December contract up 42 cents to $147.92.
There was a small amount of cash trade, with 5,201 head sold. Live steers sold from $143-147, averaging $145. Dressed steers sold from $228-230, averaging $230.
“Feedlots know that packers are hungry for cattle and have thus held strong in waiting the week out for potentially higher prices,” Stewart said.
Slaughter for the day is estimated at 128,000 head, bringing this week’s total to 383,000 head, a few thousand head more than the same time last week.
Boxed beef prices were lower on 169 loads. The Choice cutout lost 98 cents to close at $247.06, and the Select cutout lost $2.69 to close at $219.22.
Feeder cattle
Feeder cattle futures were a couple dollars higher, with the October contract up $1.90 to $176.55 and the November contract up $2.12 to $177.32.
The CME Feeder Cattle Index lost 9 cents to close at $175.58.
“It’s helping that the live cattle market is trading higher too, but the biggest supportive gesture is stemming from the likelihood that feedlots will see higher prices again this week,” Stewart said. “If the cash cattle market does indeed trade higher and corn doesn’t pose much more of a threat, then a stronger close isn’t out of the picture for the feeder cattle market.”
Corn futures were barely higher, with the December contract down a penny to $6.84 and the March contract also down a penny to $6.91.
Kansas: Winter Livestock in Dodge City sold 1,750 head on Wednesday. Compared to a week earlier, there were not enough cattle in each weight group for a market trend. Benchmark steers averaging 769 lbs. sold from $160.50-170, averaging $167.58. — Anna Miller, WLJ managing editor
