Negotiated cash fed cattle trade developed in the Southern Plains Wednesday with prices steady to $1 higher at $115/cwt. on a live basis.
There were 1,393 head offered in the weekly Fed Cattle Exchange Auction, and no takers. Two lots from the Southern Plains were passed at bids of $115.00 and $115.50/cwt.
Choice steers and heifers sold $1.50-$2.00 higher at the fat auction in Tama, IA on Wednesday. There were 358 Choice 2-4 steers weighing an average of 1,452 lbs. and bringing an average price of $117.68. Country trade in the region last week was at $114-$115.
Cattle futures stepped lower, though, with heavy volume and about even open interest. Rather than the beginning of a correction, one could argue retrenchment ahead of what looks to be a higher trending market.
Live Cattle futures closed an average of $1.60 lower.
Feeder Cattle futures closed an average of $3.13 lower, ($2.25 to $4.30 lower). A day earlier, the CME Feeder Cattle Index reached the highest level since last December at $147.44.
Wholesale beef values were higher on good demand and light offerings, according to the Agricultural Marketing Service.
Choice boxed beef cutout value was $1.84 higher Wednesday afternoon at $242.34/cwt. Select was $1.30 higher at $217.53.
Corn futures closed 2¢ to 3¢ lower.
Soybean futures closed mostly 2¢ lower.