Tuesday markets
On the first day of trading for the week, livestock markets were lower on slower slaughter speeds.
Live cattle futures closed slightly lower, with the February contract down 30 cents to $137.67 and the April contract down 27 cents to $141.85.
“Pressure lies over the live cattle market as the industry desperately wants to see production speeds back up to a normal level; this is the third week of reduced speeds,” ShayLe Stewart, DTN livestock analyst, wrote in the midday comments.
Cash trade was moderate, with 10,021 head selling between $135.50-137, averaging $136.38. Dressed steers sold between $217-218, averaging $217.97. In Nebraska, trade was slow on light to moderate demand, with live purchases at $137. Negotiated cash trading in Kansas and the western Corn Belt has been mostly inactive on light demand. On the formula side, 26,900 head averaging 892 lbs. sold for $223.75.
The national weekly direct beef type price distribution for the week of Jan. 10 to Jan. 17 was the following on a live basis:
• Negotiated purchases: $136.76.
• Formula net purchases: $141.37.
• Forward contract net purchases: $142.86.
• Negotiated grid net purchases: $139.86.
On a dressed basis:
• Negotiated purchases: $218.07.
• Formula net purchases: $222.60.
• Forward contract net purchases: $213.52.
• Negotiated grid net purchases: $221.12.
Slaughter for the day is projected to be 117,000 head, 3,000 head above last week and 2,000 below last year.
USDA’s Agricultural Marketing Service released the National Weekly Fed Cattle Comprehensive report, showing quality grading was up 0.3 percent to 83.8 percent, and dressed weights were down 3 lbs. to 896.8 lbs.
Boxed beef prices were higher on 124 loads, with the Choice cutout up $1.63 to $289.49 and the Select cutout up $1.34 to $278.39.
“Once again, we are seeing box prices shoot higher, while fed prices move lower,” the Cattle Report wrote. “Retailers will be forced to raise prices on the beef counter making beef a focus point for the battle against inflation. There also will be some beef products that are out of stock and result in a lost sale. These conditions force consumer decisions that threaten the destruction of beef demand.”
Feeder cattle
Feeder cattle closed lower, with the January contract down $1.25 to $161.45 and the March contract down 95 cents to $165.42. The CME Feeder Cattle Index was down 21 cents to $161.80.
“It wouldn’t be surprising to see the less interest in feeders and calves this week as order buyers aggressively procured the cattle they needed the last two weeks,” Stewart said. “Also, with the market’s uncertainty in the packing sector, buyers could opt out of aggressively purchasing until they have a better understanding of the market’s trajectory.”
Corn contracts closed higher, with the March contract up 3 cents to $5.99 and the May contract up 2 cents to $6 a bushel.
Iowa: Russell Livestock in Russell sold 4,018 head on Monday. Compared to the previous auction, steer calves under 550 lbs. sold steady to $3 higher; 550-750 lbs. were mostly $2-7 higher; over 750 lbs. ended mixed. Heifers under 650 lbs. ended mixed, while 650-750 lbs. sold $2-4 lower. Benchmark steers averaging 780 lbs. sold between $154-166, averaging $160.06.
Nebraska: Tri-State Livestock in McCook sold 3,610 head on Monday. Compared to the last auction, steers were steady to $9 higher, except for 850-950 lbs., which traded $4-9 lower. Heifers were steady to $9 higher. Benchmark steers averaging 774 lbs. sold between $166.75-171.75 and averaged $169.51.
South Dakota: Sioux Falls Regional Livestock in Worthing sold 4,989 head Monday. Compared to the previous auction, feeder steers 350-400 lbs. sold $3-7 higher, 400-500 lbs. were $7-11 lower, 500-600 lbs. were $5-10 higher, 600-650 lbs. traded $3-6 lower, 650-700 lbs. were $1-3 higher, 700-750 lbs. sold $1-5 lower, 750-800 lbs. were $3-5 higher, 800-900 lbs. were steady to $2 higher and over 900 lbs. traded $4-9 lower. Feeder heifers were steady to $4 lower, but 500-550 lbs. traded $3-7 higher, and 700-900 lbs. sold $1-3 higher. Benchmark steers averaging 721 lbs. sold between $159-172.75, averaging $165.85. — Charles Wallace, WLJ editor
