Tuesday markets
The markets started the day higher and turned mixed by the close of the day.
Live cattle futures traded lower, with the April contract down 12 cents to $118.37 and the June contract down 42 cents to $115.85.
Cash cattle traded lightly, with 787 head trading at $119. According to the USDA, “Thus far for Tuesday, negotiated cash trading in Nebraska and the western Corn Belt has been mostly inactive on very light demand, not enough purchases for a full market trend. Negotiated cash trading has been at a standstill in all other major feeding regions.” Dressed steers sold for $190. On the formula trade, 25,100 head averaging 842 lbs. sold for $194.22.
Boxed beef prices were sharply higher, with the Choice cutout up $5.79 to $290.99 and the Select cutout up $5.18 to $279.53 on 105 loads.
Today’s slaughter numbers are projected to be 121,000 head, the same as last week but well above the pandemic-affected numbers last year of 75,000 head.
Feeder cattle
Feeder cattle trading was mixed with the April contract higher $1.45 to $134.20 and the May contract down $1.40 to $135.87. The CME Feeder Cattle Index was lower 28 cents to $135.22.
“Even though corn futures are still rallying, traders are eyeing cattle futures after their lower trade over the last month and feel as if the market is safe enough to invest in again,” remarked ShayLe Stewart, DTN livestock analyst, in her midday comments. “At some point, corn’s high price point will be its own demise, and with traders feeling more and more comfortable with both the feeder cattle contracts, that demise may be nearing.”
Corn futures were also mixed with the May contract higher 15 cents trading at $6.99 a bushel and the June contract lower 3 cents to $6.56 a bushel.
Iowa: Russell Livestock in Russell sold 2,061 head on Monday. Compared to two weeks ago, steer calves under 600 lbs. sold mostly $11-15 lower and steers over 600 lbs. were also mostly $11-15 lower. Heifer calves under 600 lbs. were $5-8 lower, and those over 600 lbs. were $5-12 lower. Benchmark steers averaging 785 lbs. sold between $135-143.25 and averaged $139.21.
New Mexico: Roswell Livestock in Roswell sold 1,518 head on Tuesday. Compared to last week, steer calves under 600 lbs. sold mostly $5 lower, except 350-400 lbs. sold $1 higher. Feeders over 600 lbs. sold $1 lower on comparable quotes. Heifer calves under 600 lbs. sold $1-3 lower, except for 500-550 lbs. were $5 higher. Benchmark steers averaging 574 lbs. sold between $155-168 and averaged $160.86. — Charles Wallace, WLJ editor
