Wednesday markets
Cattle futures retreated today as live and feeder bulls faced corrective selling after Monday’s huge rally.
“CME cattle futures are continuing to pull back today following Monday’s huge rally,” Cassie Fish, market analyst, wrote in The Beef. “The cattle market is caught between immediate, less-than-bullish fundamentals and the high likelihood of a further meaningful supply decline over the next year to lows not seen in a decade.”
Live cattle futures closed lower, with the October contract $1.55 lower to close at $234.05 and the December contract down $1.92 to $236.82.
Cash trade was again light, with 798 head sold for $365.
On the formula side, 17,200 head averaging 924 lbs. sold for an average of $381.42.
“Asking prices are now being reported in the South at $244 to $245-plus, but are still not established in the North,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments. “Trade could develop later today, but it’s most likely that trade will develop sometime later this week.”
Today’s slaughter is estimated to be 120,000 head, 3,000 head above a week earlier.
Boxed beef prices were lower on 188 loads, with the Choice cutout $3.41 lower to $377.39 and the Select cutout down $3.48 to $356.48.
“The wholesale boxed beef market continues under normal, September seasonal pressure,” Fish wrote. “Choice posted a new low for the move today at $379.17/cwt. It can be early October before the cutout finds its footing, and even when it does, the Q4 rally hinges on rib demand as the rest of the carcass typically is not in high demand.”
Feeder cattle
Feeder cattle futures closed mixed, with the September contract 52 cents to close at $365.37 and the October contract down $2.50 to $359.62.
The CME Feeder Cattle Index was $2.32 higher to $361.10.
Corn futures closed lower, with the December and March contracts down 2 cents to $4.24 and $4.41, respectively.
Colorado: Winter Livestock in La Junta sold 966 head on Tuesday. This is the first sale of the season, so a trend is not yet available. A group of steers averaging 736 lbs. sold for $372.50.
Montana: Miles City Livestock in Miles City sold 551 head on Tuesday. Compared to the previous auction, yearling steers were too lightly tested to develop an accurate market trend, but a higher undertone was noted. Yearling heifers sold unevenly steady, ranging from $5 lower to $5 higher in a narrow comparison. Benchmark steers averaging 739 lbs. sold for $405-409 and averaged $406.77.
Utah: Producers Livestock in Salina sold 1,344 head on Wednesday. Compared to the last auction, feeder steers sold unevenly steady, with those weighing under 500 lbs. selling sharply lower, and those weighing over 500 lbs. selling sharply higher. Feeder heifers sold unevenly steady on calves and yearlings. Benchmark steers averaging 772 lbs. sold for $332.50-342.50, averaging $339.01. — Charles Wallace, WLJ contributing editor
