Tuesday markets
The cattle complex closed higher on the volatility of the grain sector, with feeder cattle gaining triple digits.
Live cattle were higher, with the August contract up 10 cents to $135.72 and the October contract up 50 cents to $141.10.
“Tuesday’s higher push has helped prop the August contract back above the market’s 100-day moving average, but the real wonder left on everyone’s mind is whether or not the cash market will be able to capitalize on the current positive tones,” ShayLe Stewart, DTN livestock analyst, wrote in the midday comments.
Cash trade was moderate, with 4,951 head selling for $136. Light trade has been reported in parts of Texas, with live deals marked at $136, roughly 50 cents lower than last week’s weighted average. The rest of cattle country remains relatively quiet midday, with early asking prices around $139 in the South but not established in the North.
On the formula side, 27,000 head averaging 866 lbs. sold for $228.81.
The national weekly direct beef type price distribution for the week of July 11-18 was the following on a live basis:
• Negotiated purchases: $141.92.
• Formula net purchases: $145.30.
• Forward contract net purchases: $150.83.
• Negotiated grid net purchases: $142.07.
On a dressed basis:
• Negotiated purchases: $230.04.
• Formula net purchases: $228.10.
• Forward contract net purchases: $220.93.
• Negotiated grid net purchases: $232.11.
Slaughter for the day is estimated at 125,000 head, 1,000 below last week.
USDA’s Agricultural Marketing Service released the National Weekly Fed Cattle Comprehensive report, showing quality grading at 80.7 percent and dressed weights lower to 863.1 lbs.
Boxed beef prices were higher on 133 loads, with the Choice cutout up $2.02 to $272.57 and the Select cutout up $1.07 to $243.73.
The Daily Livestock Report noted that the steer byproduct value has been steady since the start of the year. Last week’s value was $13.69/cwt, slightly higher than the year-to-date average through mid-July, $13.66. The cow byproduct value was $13.82/cwt last week, which is the highest value for 2022. Since the start of the year, the weekly cow byproduct value has averaged just over $13/cwt.
Feeder cattle
Feeder cattle gained triple digits, with the August contract up $2.07 to $178.75 and the September contract up $2.37 to $181.80. The CME Feeder Cattle Index was unchanged at $172.67.
“With corn prices taking a beating Tuesday, the feeder cattle contracts have maintained a snappy rally throughout the morning’s trade,” Stewart wrote. “Buyers will likely hit the market aggressively as any weakness in the corn complex is warmly welcomed and buyers are still having to be critical of their input costs. As a technical note, most of the contracts did gap higher Tuesday morning, pushing the contracts away from the breakout range established earlier last week. At some point, the market will look to fill that gap but given the positive undertones lining the market right now, the refilling won’t likely come in the immediate future.”
Corn futures closed lower, with the September and December contracts down 15 cents a bushel to $5.96 and $5.95, respectively.
Nebraska: Tri-State Livestock in McCook sold 1,050 head Monday. As the last auction was several weeks ago, an accurate comparison wasn’t available. Demand was good with the selection of calves and feeders offered. Benchmark steers averaging 720 lbs. sold for $174.50.
South Dakota: Sioux Falls Regional Livestock in Worthing sold 1,749 head Monday. Compared to the previous auction, feeder steers and heifers sold $2-5 lower. Steers weighing 650-700 lbs. sold with much lower undertones, and heifers weighing 650-750 lbs. sold with higher undertones this week. Benchmark steers averaging 781 lbs. sold between $178-181.50, averaging $180.94. — Charles Wallace, WLJ editor
