Wednesday markets
Feeder cattle were again the leaders as some contracts continue to reach new highs.
“CME feeder cattle futures and April live cattle futures and the rest of the live cattle futures strip have quietly yet decisively made life-of-contract highs today,” Cassie Fish, market analyst, wrote in The Beef. “The market is methodical and unflinchingly strong and the seasonal lows are in the rearview mirror. As the market becomes more forward looking, the recent immediate woes have receded and the bear spreads are entrenched.”
Live cattle futures climbed slightly higher, with the October contract gaining 75 cents to close at $233.85 and the December contract up $1.15 to $238.87.
Cash trade was light, with 193 head sold—not enough for a market trend.
On the formula side, 20,300 head averaging 929 lbs. sold for an average of $373.44.
The national weekly direct beef type price distribution for the week of Sept. 29 to Oct. 6 was the following on a live basis:
• Negotiated purchases: $230.82.
• Formula net purchases: $239.68.
• Forward contract net purchases: $206.14.
• Negotiated grid net purchases: $249.99.
On a dressed basis:
• Negotiated purchases: $359.80.
• Formula net purchases: $378.66.
• Forward contract net purchases: $319.19.
• Negotiated grid net purchases: $383.58.
Today’s slaughter is estimated to be 118,000 head, 3,000 head above the previous week.
Boxed beef prices were mixed on 142 loads, with the Choice cutout 19 cents higher to $366.16 and the Select cutout lost $3.64 to $345.24.
“The wholesale beef market appears to have cemented its seasonal bottom last Friday, the market printing at midday today at $367.37, almost $7/cwt higher and its only Wednesday,” Fish wrote. “Believe it or not, the holidays are on meat buyers’ minds and ensuring the supply of critical items is key. The rib just had a quick correction but has sprung back today.”
Feeder cattle
Feeder cattle futures made impressive gains, with the October contract gaining $4 to close at $369.50 and the November contract up $4.57 to $368.82.
The CME Feeder Cattle Index was 90 higher to $363.47.
Corn futures also closed higher, with the December contract up 2 cents to $4.22 and the March contract up a penny to $4.37.
Colorado: Winter Livestock in La Junta sold 2,163 head on Tuesday. Compared to the previous auction, feeder steers sold mostly $5-7 higher, with instances of sharply higher across all weight classes. Feeder heifers sold mostly $8-9 higher, with instances of sharply higher across all weight classes. Benchmark steers averaging 773 lbs. sold for $355-365, averaging $360.30.
Montana: Miles City Livestock in Miles City sold 1,955 head on Tuesday. Compared to the last auction, yearling steers and heifers were too lightly tested to develop a market trend. Steer calves over 450 lbs. sold sharply higher, in a narrow comparison. Heifer calves were too lightly tested last week to develop an accurate market trend, but higher to sharply higher undertones were noted. A group of unweaned steers averaging 618 lbs. sold for $405-426, averaging $417.20.
Texas: Lonestar Stockyards in Wildorado sold 1,424 head on Tuesday. Compared to the last auction, feeder steers and heifers traded mostly steady on limited comparable sales. Steer and heifer calves traded mostly firm to $5 higher. A group of unweaned steers averaging 675 lbs. sold between $346-362 and averaged $352.54. — Charles Wallace, WLJ contributing editor
