Tuesday markets
Cattle traded modestly higher today after several days of declines.
“The live cattle contracts decided eight consecutive days in a row of lower trade was enough and are back to rallying modestly,” remarked ShayLe Stewart, DTN livestock analyst, in her midday comments.
Live cattle traded higher today with the April contract up 22 cents to $120.57 and the June contract up 60 cents to $119.20.
Cash trade was minimal with only 74 head sold today—not enough for a market trend—versus 218 head a week ago. A total of 22,800 head of formula cattle averaging 872 lbs. sold today for $198.80.
“Feedlots have yet to share their asking prices and bids have yet to surface and it’s most likely that the week’s business will at least wait until Wednesday to transpire if not later,” Stewart wrote.
“Packers have bought a considerable number of cattle for delayed delivery and that could be one hiccup that arises in the cash cattle market and makes it more difficult for feedlots to demand higher prices.”
Slaughter for the day is expected to be 121,000 head, up from last week’s slaughter of 116,000 and well above last year’s pandemic-affected market of 85,000 head.
“With both boxed beef prices higher and a rigorous kill schedule expected for the week ahead, feedlots are liking how this week’s market is shaping up for the cash cattle side of things,” Stewart wrote.
Boxed beef prices were higher, with the Choice cutout up $2.09 to $278.26 and the Select cutout up $1.34 to $270.47 on 91 loads.
Feeder cattle
Feeder cattle traded mixed with the April contract down 15 cents to $137.57 and the May contract up 30 cents to $142.77. CME reported its latest Feeder Cattle Index lower $1.65 to $138.48.
The May corn contract was up 14 cents to $6.06 a bushel and the July contract up 11 cents to $5.92 a bushel.
“Call it what you want,” said Stewart. “Some will say higher corn prices may be summoning higher cattle prices; some will say feeders are trying to establish a short-term bottom, and some will fall flat out of their feed-wagons and howl that the markets are plum drunk at noon!”
Iowa: Russell Livestock in Russell sold 5,052 head on Monday. Compared to two weeks ago, steer calves 500-600 lbs. sold $4-7 higher; 600-750 lbs. were steady to $4 higher; and steers 750-850 lbs. sold $4 higher. Heifer calves 500-650 lbs. were steady to $4 higher, and 650-800 lbs. sold mostly steady to $3 higher. Benchmark steers averaging 765 lbs. sold between $146.25-157.50, averaging $154.25.
New Mexico: Roswell Livestock in Roswell sold 1,477 head today. Compared to last week, there was no accurate comparison on steer calves 300-350 lbs. and 500-550 lbs. due to more attractive weighing conditions last week, but other weights sold steady to $2 lower. Feeder heifers and calves were mostly $1 lower except 300-350 lbs. and 450-500 lbs. were $2 higher. Benchmark steers averaging 506 lbs. sold between $166-174, averaging $172.22. — Charles Wallace, WLJ editor
