Tuesday markets
“The cattle complex has charged into Tuesday’s market seeming unwilling to let time pass by without capitalizing on the corn market’s dip,” ShayLe Stewart, DTN livestock analyst, wrote in the midday comments. “Thankfully for cattlemen looking to sell both fat cattle and feeders/calves, the market’s support is seeping into the complex again from multiple angles as not only are corn prices lower but boxed beef prices are higher and buying interest hasn’t ceased.”
Live cattle closed triple digits higher, with the August contract up $1.55 to $141.30 and the October contract up $1.87 to $145.67.
Cash trade was mostly inactive on light demand, with 3,330 head selling for $146.
“In the country, a bid of $151 at a well-known Nebraska feedyard is being passed and the cash fed cattle market is reenergized,” wrote Cassie Fish, market analyst, in The Beef. “There is another old saying—possibly forgotten because it’s been so long—the live is the drive. Today’s overall action has a hint of that. Cash prices feel poised to make a new high for 2022 soon, the former high of $146.16 was uncharacteristically pegged for the week ending July 3. Since bottoming 2 weeks ago, the 5-area cash average has gained $4.56.”
On the formula side, 40,500 head averaging 872 lbs. sold for $224.60.
The national weekly direct beef type price distribution for the week of August 8-15 was the following on a live basis:
• Negotiated purchases: $144.41.
• Formula net purchases: $141.46.
• Forward contract net purchases: $146.10.
• Negotiated grid net purchases: $140.39.
On a dressed basis:
• Negotiated purchases: $230.
• Formula net purchases: $223.46.
• Forward contract net purchases: $221.87.
• Negotiated grid net purchases: $227.04.
Slaughter for the day is projected to be 126,000 head, the same as last week.
USDA’s Agricultural Marketing Service released the National Weekly Fed Cattle Comprehensive report, showing quality grading at 80.3 percent and dressed weights lower to 866 lbs.
Boxed beef prices closed mixed on 161 loads, with the Choice cutout up 98 cents to $265.44 and the Select cutout down 60 cents to $239.12.
Feeder cattle
Feeder cattle closed higher as well, with the August contract up $1.60 to $181.52 and the September contract up $2.47 to $185.47. The CME Feeder Cattle Index was unchanged at $179.04.
“Sales throughout Monday’s trade showed that once again buyers are continuing to scout the countryside for any yearlings as they’re in short supply and are even willing to take calves to higher prices as the realization that the market doesn’t possess as many calves as years past,” Stewart wrote.
Corn closed lower, with the September contract down 15 cents to $6.11 and the December contract down 18 cents to $6.10 a bushel.
Nebraska: Tri-State Livestock in McCook sold 3,250 head Monday. Compared to the last auction, steers were steady to $11 higher, and heifers were $2-9 lower. Benchmark steers averaging 718 lbs. sold for $192.25.
New Mexico: Roswell Livestock in Roswell sold 1,238 head Monday. Compared to the previous auction, steers and heifers sold steady to $5 higher. A group of steers averaging 626 lbs. sold between $170-176.50 and averaged $173.43.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 3,000 head Monday. Compared to the last auction, feeder steers and heifers sold with steady to higher undertones, except for 1,100-1,150 lbs., which traded steady to $4 lower. Benchmark steers averaging 788 lbs. sold between $180.75-191.25, averaging $189.22. — Charles Wallace, WLJ editor
