Tuesday markets
The cattle market found some support today and was able to trade higher.
Live cattle futures were higher, with the December contract up $1.17 to $138.47 and the February contract up 12 cents to $139.40.
There was some cash trade today—about 9,331 head sold. Live steers averaged $138-140, and dressed steers averaged $218-220. On the formula side, 26,500 head averaging 878 lbs. sold for $221.83.
“Traders know that it’s going to be an odd week for the cash market given that it’s a holiday shortened week, but traders still want the green light from the cash market before boldly supporting the technical side of the market,” ShayLe Stewart, DTN livestock analyst, remarked in her midday comments.
The national weekly direct beef type price distribution for the week of Dec. 20-27 was the following on a live basis:
• Negotiated purchases: $135.70.
• Formula net purchases: $141.38.
• Forward contract net purchases: $136.73.
• Negotiated grid net purchases: $142.69.
On a dressed basis:
• Negotiated purchases: $217.30.
• Formula net purchases: $224.73.
• Forward contract net purchases: $207.36.
• Negotiated grid net purchases: $222.92.
Slaughter for the day is estimated at 122,000 head, a couple thousand head higher than a week earlier.
Boxed beef prices were slightly higher, with the Choice cutout up 18 cents to $264.66 and the Select cutout up 91 cents to $256.09.
Feeder cattle
Feeder cattle futures were also able to recover yesterday’s losses. The January contract gained $1.15 to close at $163.55, and the March contract gained $1.95 to close at $165.22.
The CME Feeder Cattle Index gained 42 cents to close at $159.56.
Corn futures were down, with the March contract down 10 cents to $6.04 and the May contract also down 10 cents to $6.06.
“So long as the corn market continues to veer lower and the live cattle market can help support the market somewhat, feeder futures stand a good chance at closing higher,” Stewart said. “If the cash cattle market can indeed trade cattle steady to somewhat higher this week, then the market really stands a good chance at keeping its upward momentum.” — Anna Miller, WLJ managing editor
