Tuesday markets
The markets today continued their support with live and feeder cattle trading higher.
“The excitement in the feeder cattle market is trickling into the live cattle arena,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments. “But given that the cash cattle market has yet to be tested this week, we don’t know if it will be enough support to offset the market’s weaker boxed beef prices.”
Live cattle futures were higher today, with the June contract up $1.85 to $121.22. The August contract was higher $2.62, closing at $123.90.
Cash trade was somewhat active today, with 9,563 head selling between $120-124, averaging $122.88. Dressed steers sold between $193-195. On the formula side, 19,000 head averaging 842 lbs. sold for $196.62. The Tuesday negotiated cash trading in Nebraska and the western Corn Belt was limited on light demand with a few dressed purchases at $195, however there was not enough for a full market trend. Monday brought some good news to the cash markets as 1,400 head in the north brought $124.
Slaughter for today is expected to be 121,000 head, just a thousand above last week, and the week-to-date slaughter is 237,000 head.
Boxed beef prices were lower today, with the Choice cutout down $1.04 to $334.43 and the Select cutout lower $5.13 to $298.28 on 128 loads.
“Processors will attempt another healthy-sized weekly slaughter following last week’s 665,000 head,” the folks at The Cattle Report wrote. “While it remains difficult to determine how current fed supplies are, placements are slowing and inevitably a balance will be restored between the feeding sector and processing.”
Tomorrow’s Central Stockyards’ Fed Cattle Exchange auction has 37 listings in for 5,771 head of Southern cattle.
Feeder cattle
Feeder cattle were up double digits, with the August contract up $2.22 to $156.82 and the September contract higher $1.82 to $158.65. The CME Feeder Cattle Index was up 61 cents to $140.22.
“High input costs are plaguing the entire beef sector, from the high price of grass to the growing price of hay,” Stewart said. “And, of course, the sharply high corn prices make it hard for anyone’s math equation to find a profitable outcome given the current market environment.
“If this upward momentum could hold at least steady throughout the week, it’s very likely that the Superior’s Corn Belt Classic could see some excited buyers. But just as the market can trade higher, a change in the corn market could weaken the market’s hopeful trajectory.”
Corn traded mixed with the July contract up 8 cents to $6.67 a bushel and the September contract lower 6 cents a bushel to $5.91.
New Mexico: Roswell Livestock in Roswell sold 927 head Monday. Compared to the previous week, steers 400-600 lbs. were mostly steady on limited comparable quotes; heifers 400-600 lbs. sold $3 higher. Feeder steers and heifers over 600 lbs. sold mostly steady to $5 higher. A small group of benchmark steers averaging 619 lbs. sold between $161-164.
Montana: Miles City Livestock in Miles City sold 921 head on Tuesday. Compared to the previous auction, steers and heifers were all too lightly tested to develop any market trend. Demand mainly was moderate for very light offerings. A small group of steers averaging 760 lbs. sold between $127-133. — Charles Wallace, WLJ editor
