Wednesday markets
Cattle futures closed lower Wednesday as broader economic headlines weighed on the market and pressured contracts.
“Another port of entry for feeder cattle imports from Mexico to the United States is expected to open September 24 in Santa Teresa, NM,” wrote Cassie Fish, market analyst, in The Beef. “That news along with a nosebleed rally in diesel prices in the U.S. pressured CME feeder cattle futures yesterday and again today. The escalating diesel costs are worrying businesses of all sorts and many are fearful this specific energy cost will be passed on to the consumer, fueling another round of inflation.”
Live cattle futures closed lower, with the October contract down $2.25 to $218.45 and the December contract $3.15 lower to $220.20.
Cash trade was light, with 930 head sold for $348-355. On the formula side, 22,900 head averaging 957 lbs. sold for an average of $357.31.
“So far, there has been limited trade in the north a couple of bucks cheaper on a dressed basis,” Fish wrote. “Packers appear willing to buy a small cash pull back and some must replenish inventory. This implies cash volume needs to trade this week. Will the prevailing negative mood help packers get the job done at softer money or will the need to gather numbers ultimately support a steady trade?”
Today’s slaughter is estimated to be 102,000 head, 7,000 head below last week.
Boxed beef prices were lower on 119 loads, with the Choice cutout down 27 cents to $375.81 and the Select cutout $1.79 lower to $354.57.
Feeder cattle
Feeder cattle futures closed lower, with the September contract down $1.80 to $338.47 and the October contract $4.20 lower to $329.65.
The CME Feeder Cattle Index was 13 cents lower to $341.58.
Corn futures closed lower, with the December and March contracts down a penny to $5.34 and $5.48, respectively.
Montana: Miles City Livestock in Miles City sold 837 head on Tuesday. Compared to the last auction on Sept. 1, feeder steers and heifers were overall too lightly tested to develop an accurate market trend, but a higher undertone was noted for feeder cattle over 800 lbs. A group of benchmark steers averaging 762 lbs. sold for $360.
Texas: Lonestar Stockyards in Wildorado sold 1,232 head on Tuesday. Compared to the previous auction, steer and heifer calves traded mostly firm to $10 higher, with instances of up to $15 higher on higher-quality kinds with at least two rounds of shots. A group of fleshy benchmark steers averaging 792 lbs. sold for $339.
Utah: Producers Livestock in Salina sold 1,095 head on Tuesday. Compared to the last auction, feeder cattle sold unevenly steady. Benchmark steers averaging 786 lbs. sold from $307-317, averaging $315.28. — Charles Wallace, WLJ contributing editor
