Tuesday markets
Today was another disappointing day for live cattle trade.
A total of 2,119 cash cattle traded at $105, and dressed purchases moved at $165. About 10,300 head of formula cattle averaged 895 lbs. and sold for $176.76.
“Deferred contracts are finding moderate support, but nearby contracts are struggling which could also be stemming from a pressured cash cattle market and weakening boxed beef prices,” ShayLe Stewart, DTN livestock analyst, commented in her midday comments. By the end of the day however, support for all contracts had been lost.
The December contract lost 50 cents to $108.60 and the February contract lost 22 cents to $112.87.
“There’s still plenty of time in the week for the marketplace to trade higher which could give the cash market enough support to trade at least steady,” Stewart said.
Boxed beef prices continue to weaken, with the Choice cutout down 87 cents to $208.82 and the Select cutout down 10 cents to $192.20 on 174 loads. Slaughter for the day is projected at 120,000 head, up several thousand head from the same time last week but behind schedule from last year.
Feeder cattle
“Following in Monday’s footsteps the feeder cattle contracts are relishing the market’s support and are glad to be slowly seeing the market’s technical position grow stronger,” Stewart remarked.
The January feeder cattle contract was up 75 cents to $140.10 and March was up 30 cents to $140.90. The CME Feeder Cattle Index was up 12 cents to $136.69 and the December corn contract was up barely, under a penny, to a little over $4.24.
“It’s better to see the slow, constant support given the time of year it is rather than hasty jumps in the market that usually cannot be supported over the long term,” Stewart added. “The feeder cattle contracts will again face some short-term resistance at $141 but with the market’s leisurely mentality it doesn’t seem like a pressing matter at the moment to decide if the market should continue to scale higher or relax heading into the middle of the week.”
Roswell Livestock Auction in Roswell, NM, sold 1,454 head Monday. Compared to last week: Steer calves under 600 lbs. sold $1-4 higher; calves and feeders over 600 lbs. sold steady to $1 lower. Heifer calves under 600 lbs. sold $3-5 higher; there was no accurate comparison over 600 lbs., but a much higher undertone on 700-800 lbs., though quality was much more attractive. Benchmark steers sold between $128-128.50, averaging $128.23. — Anna Miller, WLJ editor
