Wednesday markets
USDA released its latest acreage report, which sent corn soaring higher and feeder cattle tumbling down.
“USDA’s Acreage report crushed the confidence in the feeder cattle market, but it didn’t stir up too much emotion in the live cattle and lean hog markets,” remarked ShayLe Stewart, DTN livestock analyst, in her daily comments.
Live cattle futures were mixed, with the June contract down 5 cents to $122.50 and the August contract up 80 cents to $122.72. The June contract is now expired.
On the cash trade market, a total of 31,355 head sold. Live steers sold between $118-126, averaging $123.08, and dressed steers sold between $195-198, averaging $197.88. On the formula side, a total of 17,800 head averaging 863 lbs. sold for $200.12.
“Yes, packers are bidding on cattle, but it’s at lower prices than a week ago!” Stewart exclaimed.
The Fed Cattle Exchange listed 5,362 head for their weekly Wednesday auction, of which 608 head sold. Texas/Oklahoma/New Mexico sold the brunt of the offering, with 498 head sold. Steers averaged $121.50. Kansas sold the remaining head, with heifers averaging $122.
Other opening bids ranged from $118-120, with most reserved bids set at $122.
“With packers buying less than 50,000 head last week, one would have hoped feedlots would have stuck to their guns this week and made packers pay up after last week’s pathetic trade,” Stewart said.
“But packers play a smart, strategic psychological game and they knew feedlots would be chomping at the bit to move cattle ahead of the holiday as some would be worried about carrying them into next week.”
Slaughter for the day is estimated at 120,000 head, several thousand ahead of the same time last week, in advance of the holiday weekend. Slaughter to date totals 358,000 head, compared to last Wednesday’s number of 356,000 head.
Boxed beef prices were lower, but only slightly. On 131 loads, the Choice cutout lost $1.05 to $291.29 and the Select cutout lost $1.13 to $269.27.
Feeder cattle
“Wednesday’s acreage report sent bull-spreaders diving into the corn contracts where most of the nearby contracts closed limit up,” Stewart said.
The report logged 92.7 million acres of corn planted, less than expected, but higher than the 90.82 million acres last year.
“The slower trading week throughout the cattle contracts didn’t take the blow of the bullish crop report well in the feeder cattle arena as feedlots continue to wonder about input costs amid drought conditions, high hay prices and a fickle corn market.”
Feeders nosedived, with the August contract down $2.77 to $154.62 and the September contract down $2.37 to $157.42. Corn gained 25 cents on the July contract to $7.20, but hit limit up on the September contract, bringing it to $5.99. The CME Feeder Cattle Index gained 38 cents, bringing the price to $147.10.
Missouri: Ozarks Regional Stockyards in West Plains sold 3,529 head Wednesday. Compared to the last sale, steer calves under 700 lbs. traded $4-8 higher with heavier weights trading steady to $4 lower. Heifer calves under 650 lbs. traded $3-6, higher with heavier weights trading steady to $3 higher. — Anna Miller, WLJ managing editor
