Tuesday markets
Despite higher feed prices, feeder cattle closed higher, and cash trade is showing some movement higher.
Live cattle closed higher, with the April contract up $1.42 to $139.95 and the June contract up $1.50 to $136.30. Deferred contracts were 65 cents to $1.02 higher.
Cash trade was active, with 25,693 head selling between $139-142, averaging $140.73. Dressed steers sold between $221-224 and averaged $223.10. Compared to last week, live purchases traded $1 higher at $139. In Nebraska and the Western Corn Belt, a few live purchases traded at $142. On the formula side, 24,000 head averaging 876 lbs. sold for $224.59.
“With the stronger tone rippling into all sides of the cattle market, it’s looking like feedlots are going to stick to their guns and demand higher prices this week,” ShayLe Stewart, DTN livestock analyst, wrote in the midday comments. “Asking prices are around $140-plus in the South, and the North has yet to share what they’d like to see. If this type of support (higher cash, higher futures market, strong slaughter, strong boxed beef prices) can continue through Tuesday’s close, then the market stands a real chance at taking on the 40-day moving average of $136.66.”
Boxed beef prices traded higher on 115 loads, with the Choice cutout up $1.36 to $273.47 and the Select cutout up 42 cents to $260.71.
The national weekly direct beef type price distribution for the week of April 4-11 was the following on a live basis:
• Negotiated purchases: $138.89.
• Formula net purchases: $141.14.
• Forward contract net purchases: $145.14.
• Negotiated grid net purchases: $140.38.
On a dressed basis:
• Negotiated purchases: $222.71.
• Formula net purchases: $222.98.
• Forward contract net purchases: $223.86.
• Negotiated grid net purchases: $223.58.
Slaughter for the day is projected to be 125,000 head, the same as last week.
USDA’s Agricultural Marketing Service released the National Weekly Fed Cattle Comprehensive report, showing quality grading at 82.8 percent and dressed weights lower to 872.8 lbs.
Feeder cattle
“Cattlemen are running on fumes this week as they try to keep calves alive during this monstrous storm,” Stewart wrote. “But the live cattle and feeder cattle contracts are rallying as the snow blows in and (the) wind whips, as the cattle market does indeed love a good snow storm.”
Feeder cattle closed higher, with the April contract up $1.10 to $157.75 and the May contract up $1.02 to $160.92. The CME Feeder Cattle Index was up 14 cents to $155.81.
Corn contracts closed higher, and USDA’s Crop Progress report shows 2 percent of the national corn crop was planted—1 percent below the five-year average. The May contract closed up 11 cents to $7.76, and the July contract was up 13 cents to $7.72. New crop corn contracts were higher 13 cents a bushel.
Iowa: Russell Livestock in Russell sold 5,100 head Monday. Compared to the last auction, steer calves were mostly steady with a weaker undertone; heifer calves traded mixed from firm to $5 higher. Benchmark steers averaging 771 lbs. sold between $151.25-169.10 and averaged $161.08.
Nebraska: Tri-State Livestock in McCook sold 950 head Monday. Compared to the previous auction, the market was steady on comparable classes. Benchmark steers averaging 798 lbs. sold for $154.
South Dakota: Sioux Falls Regional in Worthing sold 3,935 head Monday. Compared to the last auction, feeder steers sold $2-5 higher, with instances of $9 higher on 850-900 lbs. Feeder heifers traded steady to $5 lower, with instances of $8 lower on 600-650 lbs. and $4-6 higher on 750-800 lbs. — Charles Wallace, WLJ editor
