Tuesday markets
“It’s a strong day for the livestock complex as the cattle contracts are anxious to rally after absorbing Monday’s Cattle Inventory report,” wrote ShayLe Stewart, DTN livestock analyst, in the midday comments.
Live cattle closed higher, with the February contract up 72 cents to $140.30 and the April contract up 85 cents to $145.37.
“Winter weather and improving slaughter rates will set the tone for this week’s fed prices. Cattle owners are pricing cattle higher and the mid-week storm may cause some feedlots to hold from selling some cattle,” the Cattle Report wrote. “Packer nibbled for cattle Monday with steady price bids with no success. Fed prices have remained steady for three weeks after falling from over $140 to $137.”
Cash trade was moderate, with 4,006 head selling between $137-141, averaging $140.05. Dressed steers sold between $218-220 and averaged $219.44. On the formula side, 28,900 head averaging 895 lbs. sold for $218.79.
“There has been some very light cash trade this morning at $137 to $139 and a $220 dressed bid from a regional packer just surfaced, $2 higher dressed than a week ago,” Cassie Fish, market analyst for The Beef, wrote. “Cattle feeders are pricing cattle higher and if there were a week to see prices advance, it would be this one given the optimism swelling in almost all commentary.”
The national weekly direct beef type price distribution for the week of Jan. 24 to Jan. 31 was the following on a live basis:
• Negotiated purchases: $137.
• Formula net purchases: $139.59.
• Forward contract net purchases: $139.64.
• Negotiated grid net purchases: $138.90.
On a dressed basis:
• Negotiated purchases: $217.99.
• Formula net purchases: $220.44.
• Forward contract net purchases: $216.06.
• Negotiated grid net purchases: $221.22.
Slaughter for the day is projected to be 121,000 head, 3,000 head above last week.
Boxed beef prices were lower on 127 loads, with the Choice cutout down $4.96 to $285.44 and the Select cutout down $3.05 to $280.22.
USDA’s Agricultural Marketing Service released the National Weekly Fed Cattle Comprehensive report, showing quality grading was up 0.8 percent to 84.8 percent, and dressed weights were up 1.5 lbs. to 899.4 lbs.
Feeder cattle
Feeder cattle started the day lower but rallied at closing, with the March contract up 67 cents to $163.70 and the April contract up 70 cents to $169.15. The CME Feeder Cattle Index was up 33 cents to $158.77.
Corn futures were up, with the March contract higher 8 cents to $6.34 and the May contract up 9 cents to $6.33 a bushel.
“It wouldn’t be unlikely to see excellent demand for calves in sale barns this week as the Cattle Inventory Report bodes in favor of feedlots and cow-calf producers,” Stewart wrote. “The heavier feeders (weighing 800 lbs. or more) will likely continue to see steady to minimal interest as most of the market’s opportunity lies in the latter half of 2022 at this point.”
Iowa: Russell Livestock in Russell sold 2,943 head Monday. Compared to the previous auction, feeder steers 400-700 lbs. sold $5-10 higher, and over 700 lbs. were firm to $3 higher. Feeder heifers 350-800 lbs. sold $6-8 higher. Benchmark steers averaging 734 lbs. sold between $155-175.75, averaging $169.46.
Nebraska: Tri-State Livestock in McCook sold 3,218 head Monday. Compared to the last auction, steers over 550 lbs. sold $2-4 higher, and heifers over 500 lbs. sold steady to $9 higher. Benchmark steers averaging 750 lbs. sold for $165.
South Dakota: Sioux Falls Regional Livestock in Worthing sold 4,184 head Monday. Compared to the last auction, feeder steers 400-500 lbs. were $2-8 lower, 500-600 lbs. sold steady to $3 higher, 600-800 lbs. traded $5-9 higher, 800-850 lbs. were $1 lower and 850-950 lbs. sold $2-4 higher. Feeder heifers sold steady to $5 higher, except 400-450 lbs., which were $6-7 lower, and 700-750 lbs., which traded $9-10 higher. Benchmark steers 716 lbs. sold between $162-175 and averaged $171.26.— Charles Wallace, WLJ editor
