Cattle futures surged higher on Wednesday, extending gains from the previous session. Perhaps traders are expecting a bounce back from last week’s winter storms that dampened beef demand. High-flying equity markets added to market optimism.
There was no country trade to speak of, but early signs pointed to steady to slightly higher cash fed cattle prices this week.
Besides strength on the Board, Choice 2-4 steers sold $2-$3 higher at Sioux Falls Regional in South Dakota on Wednesday at $121.50 to $125.00/cwt. Last week’s country trade was mainly $120 on a live basis.
Only 108 head (one lot—steers) out of 304 offered sold in the weekly Fed Cattle Exchange Auction. The weighted average price was $119.75 for deliver at 1-9 days. There were POs on two lots of heifers at $118.00 and $119.50.
Choice boxed beef cutout value was 28¢ lower on Wednesday afternoon at $205.30/cwt. Select was 28¢ lower at $199.61.
Live Cattle futures closed an average of $1.93 higher ($1.52 to $2.87 higher in spot Feb).
Feeder Cattle futures closed an average of $2.03 higher ($1.72 to $2.27 higher).
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