Cattle futures surged higher on Wednesday—limit up in several contracts—buoyed by cash fed cattle prices in the weekly Fed Cattle Exchange auction, followed by a step higher in country trade. Feeder Cattle received additional support from declining Corn futures prices, which were pressured by the monthly World Agricultural Supply and Demand Estimates.
Unlike the last few sales, the majority of cattle—1,907 head of 2,665 head offered—traded hands in the Fed Cattle Exchange sale. Prices were unevenly steady with the bulk of last week’s country trade: $117.80 for delivery at 1-9 days; $118.45 for delivery at 1-17 days; $117.34 for delivery at 17-30 days.
Then, country trade opened up $2-$3 higher on Wednesday at mostly $120/cwt. on a live basis.
Live Cattle futures closed and average of $2.50 higher ($1.00 to limit up $3.00 in the front three contracts).
Feeder Cattle futures closed an average of $4.17 higher (from $2.22 higher to limit up $4.50 across most of the board).
Choice boxed beef cutout value was $2.55 lower Wednesday afternoon at $212.69/cwt. Select was $1.78 lower at $198.73. That’s the first time Select was below $200 since mid April.