Wednesday markets
Cattle futures closed mixed on short covering as traders sought fundamental support.
Live cattle futures closed slightly lower, with the October contract down $1.17 to $215.85 and the December contract 75 cents lower to $218.47.
Cash trade was nonexistent, with only 38 head sold. On the formula side, 34,900 head averaging 942 lbs. sold for an average of $354.93.
“This week, bids have been absent in Texas, Kansas, Nebraska and Iowa,” wrote Cassie Fish, market analyst, in The Beef. “There have been 597 fed cattle reported sold on USDA with an average of $218.91. There were no bids on the Fed Cattle Exchange either.”
Cash trade for the week ending Sept. 6 was 65,193 head. Live steers averaged $219.54, and dressed steers averaged $344.98.
The national weekly direct beef type price distribution for the week of Aug 31 to Sept. 7 was the following on a live basis:
• Negotiated purchases: $219.57.
• Formula net purchases: $226.99.
• Forward contract net purchases: $242.33.
• Negotiated grid net purchases: $234.50.
On a dressed basis:
• Negotiated purchases: $345.09.
• Formula net purchases: $357.05.
• Forward contract net purchases: $378.31.
• Negotiated grid net purchases: $363.50.
Today’s slaughter is estimated to be 109,000 head, 9,000 head above last week.
Boxed beef prices were mixed on 143 loads, with the Choice cutout up $3.20 to $380.77 and the Select cutout down $3.05 to $352.34.
Feeder cattle
Feeder cattle futures closed slightly higher, with the September contract up 82 cents to $329.70 and the October contract 37 cents higher to $325.82.
The CME Feeder Cattle Index was $2.55 lower to $326.98.
Corn futures closed lower, with the September contract down 3 cents to $5.07 and the December contract 5 cents lower to $5.27.
New Mexico: Roswell Livestock in Roswell sold 467 head on Tuesday. Compared to the previous auction, steer calves sold $12-18 lower, except 400-450 lbs. traded $5 higher. Feeder steers sold $2-12 lower, but 700-750 lbs. sold steady. Heifer calves sold $10 lower and feeder heifers were $3-15 lower. Benchmark steers averaging 755 lbs. sold from $310-323, averaging $321.67.
Texas: Lonestar Stockyards in Wildorado sold 561 head on Tuesday. Compared to the last auction, steer and heifer calves traded mostly $5-10 higher. There were not enough comparable sales of feeder steers or heifers for a market trend. A group of steers averaging 689 lbs. sold for $340. — Charles Wallace, WLJ contributing editor
