Tuesday markets
Cattle futures headed lower on account of higher corn prices. Cash trade was limited.
Live cattle futures closed lower, with the August contract down 37 cents to $137.97 and the October contract down $1.05 to $143.17.
“We’d like to think that corn prices don’t affect the live cattle/fat cattle market since, at this point, these cattle have very few days left on feed, but unfortunately it does,” said ShayLe Stewart, DTN livestock analyst, in her midday comments.
There was a small amount of cash trade today, with 860 head sold. There were not enough trades for a market trend for live steers, but dressed steers sold from $230-232.
On the formula side, a total of 30,900 head averaging 854 lbs. sold for an average of $221.06.
The national weekly direct beef type price distribution for the week of July 18-25 was the following on a live basis:
• Negotiated purchases: $141.20.
• Formula net purchases: $141.43.
• Forward contract net purchases: $146.94.
• Negotiated grid net purchases: $140.22.
On a dressed basis:
• Negotiated purchases: $227.76.
• Formula net purchases: $223.22.
• Forward contract net purchases: $218.76.
• Negotiated grid net purchases: $229.20.
Slaughter for the day is estimated at 126,000 head, bringing the week’s total to 245,000 head.
Boxed beef prices were lower on 154 loads. The Choice cutout lost $1.51 to close at $264.73, and the Select cutout lost $1.16 to close at $237.70.
Feeder cattle
Feeder cattle futures plummeted lower. The August contract lost $2.47 to close at $178.80, and the September contract lost $3.15 to close at $182.50.
The CME Feeder Cattle Index gained $1.09 to close at $176.40.
Corn futures found some footing and gained a few cents, with the September contract up 7 cents to $6.15 and the December contract up 6 cents to $6.14.
“When evaluating the Cattle on Feed reports, the actual data is important, but the market acts when the report’s findings vary from what analysts projected—and that’s why Tuesday’s corn market is substantially higher as crop conditions suffered more than what most analysts projected,” Stewart said.
Missouri: Joplin Regional Stockyards in Carthage sold 4,013 head on Monday. Compared to the previous sale, feeder heifers sold $3-8 higher, with the most gain on weights under 575 lbs. Benchmark steers averaging 762 lbs. sold for $173.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 7,006 head on Monday. Compared to a week earlier, feeder steers and calves sold unevenly steady. Feeder heifers and heifer calves sold steady to $3 higher. Benchmark steers averaging 781 lbs. sold between $170-181, averaging $174.88. — Anna Miller, WLJ managing editor
