Wednesday markets
Cattle futures posted modest corrective gains today, clawing back some of yesterday’s steep losses.
“As the day has worn on, the rally has become stronger as everyone looks around, wondering if yesterday was much ado about nothing—or at least nothing more than a September seasonal correction with the drama provided by managed fund liquidation and algos,” Cassie Fish, market analyst, wrote in The Beef.
Live cattle futures closed higher, with the October contract gaining 97 cents to close at $231.15 and the December contract $1.50 higher to $232.67.
Cash trade was moderate, with 3,005 head sold. Live steers sold for $237-240, and dressed steers sold for $375.
On the formula side, 26,300 head averaging 929 lbs. sold for an average of $387.53.
A few bids are currently on the table at $236 in Kansas and $235 live and $375 dressed in Nebraska, but no new sales have been reported following Tuesday’s business,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments. “On Tuesday afternoon, there was a thin movement in the North at $378, which is $5 lower than the previous week’s weighted average, but there weren’t enough cattle traded to say that an accurate trend has been set for the week. Asking prices in the South are firm at $243 and in the North at $380.”
Today’s slaughter is estimated to be 118,000 head, 2,000 head lower than the previous week.
Boxed beef prices were lower on 136 loads, with the Choice cutout down $2.03 to $405.64 and the Select cutout $3.28 lower to $383.68.
Feeder cattle
Feeder cattle regained some of the losses yesterday, with the September contract $1.50 higher to close at $353.20 and the October contract up 47 cents to $350.40.
The CME Feeder Cattle Index was $1.17 lower to close at $365.86.
Corn futures were lower, with the September contract down 4 cents to $3.97 and the December contract 2 cents lower to $4.17.
Montana: Miles City Livestock in Miles City sold 869 head on Tuesday. Compared to the last auction, feeder steers were too lightly tested today to develop any market trend. Yearling heifers under 850 lbs. sold steady to $5 higher, heifers over 850 lbs. sold $10-15 lower. A group of steers averaging 848 lbs. sold for $347.50.
Texas: Lonestar Stockyards in Wildorado sold 977 head on Tuesday. Compared to the previous auction, steers and heifers traded mostly $4-5 lower on all classes. A group of steers averaging 625 lbs. sold for $395.
Utah: Producers Livestock in Salina sold 1,436 head on Wednesday. Compared to the last auction, feeder cattle sold sharply lower on calves and yearlings. Benchmark steers averaging 720 lbs. sold for $325-355 and averaged $338.32.
Wyoming: Winter Livestock in Riverton sold 886 head on Tuesday. An accurate comparison could not be made as in the summer months, no sales were reported. Benchmark steers averaging 717 lbs. sold for $341-368 and averaged $364.17. — Charles Wallace, WLJ contributing editor
