Tuesday markets
The livestock complex is seeing some support as markets closed modestly higher.
Live cattle closed higher, with the February contract up 47 cents to $142.90 and the April contract up 55 cents to $146.90.
“Feedlots could have a tough time seeing much better than steady prices as packers sit with some committed cattle, which alleviates their need to jump aggressively into the cash market,” ShayLe Stewart, DTN livestock analyst, wrote in the midday comments. “Still, processing speeds have been running aggressively, which helps feedlots plea for at least steady prices. One regional packer has bid $223 in some eastern Nebraska feedlots, but other than that the cash cattle market sits idle.”
Cash trade was nonexistent, with 761 head selling for $142. On the formula side, 28,500 head averaging 878 lbs. sold for $226.16.
“So far this week, there have been very few bids, packers having purchased 102,000 head last week,” Cassie Fish, market analyst for The Beef, wrote. “Last week’s big slaughter and expectations for another one this week are providing support and lending confidence that cash prices will indeed advance. But packers will do their best to step the market up gradually since their margins lost almost $90 per head net last week and wholesale beef values search for a February seasonal low.”
Boxed beef prices were lower on 165 loads, with the Choice cutout down $3.59 to $270.37 and the Select cutout down 93 cents to $267.82. The Choice/Select spread was $2.55.
The national weekly direct beef type price distribution for the week of Feb. 7 to Feb. 14 was the following on a live basis:
• Negotiated purchases: $140.56.
• Formula net purchases: $141.01.
• Forward contract net purchases: $143.07.
• Negotiated grid net purchases: $139.64.
On a dressed basis:
• Negotiated purchases: $223.93.
• Formula net purchases: $222.84.
• Forward contract net purchases: $214.66.
• Negotiated grid net purchases: $220.41.
Slaughter for the day is projected to be 123,000 head, a thousand above last week.
USDA’s Agricultural Marketing Service released the National Weekly Fed Cattle Comprehensive report, showing quality grading was up 1.1 percent to 85.6 percent, and dressed weights were down to 892.1 lbs.
Feeder cattle
Feeder cattle closed higher on lower corn prices, with the March contract up $1.85 to $168.72 and the April contract up $1.05 to $172.55. The CME Feeder Cattle Index was down 45 cents to $162.71.
Corn was sharply lower, with the March and May contracts down 17 cents to $6.38 and $6.37 a bushel, respectively.
Iowa: Russell Livestock in Russell sold 3,481 head Monday. Compared to the previous auction, steer calves under 750 lbs. were mostly steady to $4 higher; 750-850 lbs. traded $7-9 higher. Heifer calves under 650 lbs. sold $2 higher, and heifers over 650 lbs. were $2-5 higher. Benchmark steers averaging 762 lbs. sold between $160-173.60, averaging $169.07.
Nebraska: Tri-State Livestock in McCook sold 2,760 head Monday. Compared to the last auction, steers were $4-7 higher, with not enough heifers to show a trend except 750 lbs., which were $2 higher. Benchmark steers averaging 734 lbs. sold between $161-178.25 and averaged $168.47.
South Dakota: Sioux Falls Regional in Worthing sold 4,628 head Monday. Compared to the previous auction, feeder steers 350-400 lbs., 450-500 lbs., 650-800 lbs. and 850-900 lbs. were steady to $5 lower. Steers 400-450 lbs., 500-650 lbs., 800-850 lbs. and 900-950 lbs. traded steady to $5 higher. Feeder heifers were steady to $5 higher, except 450-500 lbs. and 750-800 lbs., which traded $1-5 lower. Benchmark steers averaging 777 lbs. sold between $159.60-174, averaging $164.71. — Charles Wallace, WLJ editor
