Tuesday markets
Live cattle closed higher after yesterday’s tough start to the week, and cash trade was active early in the week, closing higher.
Live cattle closed higher after yesterday’s triple-digit loss. The April contract was up 90 cents to $140, and the June contract was up 82 cents to $136.25.
Cash trade was active, with 36,240 head selling between $139-147, averaging $143.89. Dressed cattle sold between $230-232 and averaged $231.82. On the formula side, 19,500 head averaging 858 lbs. sold for $227.98.
“The board’s slightly higher trade has helped spur some developments in the cash cattle market,” ShayLe Stewart, DTN livestock analyst, wrote in the midday comments. “Southern cattle are beginning to trade for $140 (full steady), and the North is seeing cattle sell for $232 dressed ($2 higher than last week) and $145 to $146 live (steady to $1 higher). It is being noted that majors are aggressively bidding on cattle which again highlights the fact that packers are indeed short bought.”
The national weekly direct beef type price distribution for the week of April 18-25 was the following on a live basis:
• Negotiated purchases: $143.27.
• Formula net purchases: $141.59.
• Forward contract net purchases: $144.08.
• Negotiated grid net purchases: $140.78.
On a dressed basis:
• Negotiated purchases: $231.81.
• Formula net purchases: $224.48.
• Forward contract net purchases: $225.39.
• Negotiated grid net purchases: $224.50.
Slaughter for the day is projected to be 125,000 head, a thousand above last week.
USDA’s Agricultural Marketing Service released the National Weekly Fed Cattle Comprehensive report, showing quality grading at 81.7 percent and dressed weights lower to 873.4 lbs.
Boxed beef prices were lower on 183 loads, with the Choice cutout down $2.43 to $264.17 and the Select cutout down 29 cents to $256.23.
USDA’s National Agricultural Statistics Service released the monthly Cold Storage report, showing the total supply of beef in cold storage at the end of March was estimated at 536.9 million lbs., 11.2 percent higher than a year ago and 13.5 percent higher than the five-year average. According to the Daily Livestock Report, this was the highest end-of-March beef inventory, primarily driven by more beef cuts in cold storage. The inventory of beef cuts in storage at the end of March was estimated at 53.8 million lbs., 53.8 percent higher than the previous year and 40.9 percent higher than the five-year average. The Daily Livestock Report attributes the higher inventory to lower exports or inventory building ahead of inflation in May and June.
Feeder cattle
Feeder cattle closed lower, with the April contract down 35 cents to $156.20 and the May contract down 57 cents to $160.72. The CME Feeder Cattle Index was down 40 cents to $156.12.
“The corn market is trending just slightly above steady, but with how fragile the feeder cattle market is after Monday’s blood bath, the corn market’s mild gain is enough to ensure that feeders trend lower,” Stewart wrote.
Corn futures were slightly higher, with the May and June contracts up 3 cents a bushel to $8.03 and $8.01, respectively.
Iowa: Russell Livestock in Russell sold 3,730 head Monday. Compared to the last auction, steer calves sold $3 higher to $3 lower. Heifer calves 300-600 lbs. traded $6-10 lower, and 600-900 lbs. were $3-6 higher. Benchmark steers averaging 772 lbs. sold between $155-165, averaging $159.70.
Nebraska: Tri-State Livestock in McCook sold 1,670 head Monday. Compared to the previous auction, steers 900-950 lbs. were $3 lower. There was not enough of a market trend for other comparisons, but demand was moderate to good. Benchmark steers averaging 789 lbs. sold for $164.60.
South Dakota: Sioux Falls Regional Livestock in Worthing sold 3,361 head Monday. Compared to the previous auction, feeder steers sold steady to $2 higher, and heifers were steady to $4 higher. Benchmark steers averaging 774 lbs. sold between $154.50-161.50 and averaged $158.02. — Charles Wallace, WLJ editor
