Tuesday markets
It’s turnaround Tuesday, as live and feeder cattle closed higher while cash trade has not developed for the week.
Live cattle closed higher, with the June contract up 90 cents to $133.72 and the August contract up $1.22 to $134.12.
Cash trade was light, with 2,384 head selling for $141. Dressed steers sold for $227.
“The negotiated cash cattle market is off to a very slow and quiet start,” Cassie Fish, market analyst for The Beef, wrote. “It is unlikely anyone will sell for less than steady and all are pricing higher. Given the big slaughter levels and front-end currentness, steady ought to be the worst of it this week. Packers do need to replenish inventories.”
On the formula side, 29,200 head averaging 859 lbs. sold for $221.91.
The national weekly direct beef type price distribution for the week of May 23 to June 6 was the following on a live basis:
• Negotiated purchases: $138.25.
• Formula net purchases: $142.05.
• Forward contract net purchases: $148.55.
• Negotiated grid net purchases: $140.86.
On a dressed basis:
• Negotiated purchases: $222.33.
• Formula net purchases: $225.18.
• Forward contract net purchases: $223.70.
• Negotiated grid net purchases: $230.19.
Slaughter for the day is projected to be 126,000 head, the same as last week.
According to the Daily Livestock Report, slaughter has maintained a 15 percent increase over last year through the beginning of June. The regions with the biggest increases are region 6 (AR, LA, NM, OK and TX), up 31 percent from 2021, and region 7 (IA, KS, MO and NE), up 29 percent. Increases were also found in the Rust Belt (24 percent), the Southeast (22 percent) and the West (9 percent). The biggest decrease was in region 8 (CO, MT, ND, SD, UT and WY), down 14 percent from 2021.
USDA’s Agricultural Marketing Service released the National Weekly Fed Cattle Comprehensive report, showing quality grading at 81.2 percent and dressed weights slightly higher to 858.5 lbs.
Boxed beef closed mixed on 137 loads, with the Choice cutout up $1.84 to $271.42 and the Select cutout down $1.53 to $249.56.
Feeder cattle
Feeder cattle closed slightly higher despite corn closing up double digits. The August contract was up 47 cents to $172.45, and the September contract was higher 20 cents to $174.75. The CME Feeder Cattle Index was down 4 cents to $158.49.
Corn followed the bounce in prices from yesterday, with the July contract up 14 cents to $7.57 and the September contract up 11 cents to $7.25 a bushel.
“Given that cost of gains are steadily around $1.30 per day, buyers looking to fill their pens with feeder cattle (are) hoping to see the live cattle market grow stronger to promise some sort of a return,” ShayLe Stewart, DTN livestock analyst, wrote in the midday comments. “Even though input prices are high, sales early this week and late last week weren’t short on active buyers as recent rains have helped pick up the market’s morale.”
Nebraska: Tri-State Livestock in McCook sold 550 head Monday. There was no comparison to the previous auction, but demand was good. A group of steers averaging 814 lbs. sold for $161.25.
South Dakota: Sioux Falls Regional Livestock in Worthing sold 7,256 head Monday. Compared to the previous auction, steers sold $3-8 higher, except 650-700 lbs., which traded steady to $3 lower. Heifers sold $4-8 higher, except 950-1,000 lbs., which were steady to $1 higher. Benchmark steers averaging 717 lbs. sold between $170-186.50 and averaged $175.66. — Charles Wallace, WLJ editor
