Tuesday markets
Cattle futures had another bearish day.
“Live cattle futures are continuing to scale lower in the same lackadaisical manner as Monday’s trade,” remarked ShayLe Stewart, DTN livestock analyst, in her midday comments.
Live cattle futures were lower today with the April contract down 32 cents to $122.40 and the June contract down $1.17 to $120.92.
Cash trade was light today with 218 head sold—not enough for a market trend. On the formula trade, 12,900 head averaging 850 lbs. sold for $193.34.
“There may be more cattle on this week’s showlists, but that isn’t an alarming concern given the fact that packers need cattle to keep up with demand,” Stewart said. “If cash cattle prices can trade higher again this week, this will be the fifth consecutive week in a row of higher prices. Prices may not be as sharply higher as last week’s advancement, but somewhere around $2.00 higher isn’t out of the equation.”
Boxed beef prices were mixed with the Choice cutout selling $1.30 lower and the Select cutout trading higher 38 cents to $266.54 on 125 loads.
Today’s slaughter numbers are projected to be 116,000 head, down from last week’s number of 120,000 head, but above last year’s 95,000 head.
Feeder cattle
Feeders also traded lower with the April contract down $2.05 to $142.45 and the May contract down $2.37 to $147.32. CME Feeder Cattle Index was 30 cents higher to $143.66.
“The feeder cattle contracts are caught in the middle of absorbing what the corn market does all while trying to balance the developments in the cash cattle and live cattle markets,” Stewart said. “At this point, the market hasn’t given the feeder cattle complex much hope in trading higher but higher cash cattle prices later in the week could spark some positivity.”
Corn futures were higher today with the May contract up 11 cents trading at $5.80 a bushel and the July contract up 10 cents to $5.66 a bushel.
Iowa: Russell Livestock in Russell sold 5,052 head on Monday. Trade was active compared to two weeks ago with steer calves 500-600 lbs. $4-7 higher; 600-750 lbs. steady to $4 higher; and 750-850 lbs. $4 higher. Heifer calves 500-650 lbs. were steady to $4 higher; 650-800 lbs. sold mostly steady to $3 higher. Demand was good for the heavy offerings. Benchmark steers averaging 765 lbs. sold between $146.25-157.50, averaging $154.25.
New Mexico: Roswell Livestock Auction in Roswell sold 1,297 head on Monday. Compared to last week: Steer calves under 600 lbs. sold mostly $10-16 higher with instances of $28 higher on 300-350 lbs. There was no accurate comparison over 600 lbs., but a lower undertone was noted, except a few 700-750 lbs. traded $8 higher. Heifer calves under 450 lbs. were $6-12 higher; over 450 lbs. sold $2-7 higher. Benchmark steers averaging 704 lbs. sold at $142.50 with 19 head sold. — Charles Wallace, WLJ editor
