Tuesday markets
Cattle futures scaled higher another day, but cash trade was limited.
The April live cattle contract gained 52 cents to close at $140.85, and the June contract gained $1.10 to close at $136.80.
Cash trade was inactive today, with only 337 head sold. On the formula side, a total of 21,200 head averaging 867 lbs. sold for an average of $224.66.
“There is no doubt that the industry had much higher hopes for cash fed cattle prices for Q1 2022 than what has been achieved,” wrote Cassie Fish, market analyst, in The Beef. “But with only seven weeks until May, it becomes harder for the market to regain that kind of momentum.”
The national weekly direct beef type price distribution for the week of March 7-14 was the following on a live basis:
• Negotiated purchases: $138.43.
• Formula net purchases: $144.61.
• Forward contract net purchases: $144.19.
• Negotiated grid net purchases: $142.61.
On a dressed basis:
• Negotiated purchases: $219.89.
• Formula net purchases: $227.18.
• Forward contract net purchases: $222.31.
• Negotiated grid net purchases: $227.20.
Slaughter for the day is estimated at 125,000 head, on pace with the same time last week.
Boxed beef prices were mixed on 135 loads. The Choice cutout gained $2.39 to close at $257.90, and the Select cutout lost $1.10 to close at $248.84.
“As the cutout bottomed, so did packer margins last week, and that trend is seasonally expected to continue,” Fish said. “No one expects packer margins to reach last year’s record level, but packers are expected to be very profitable from a historical perspective this year. Cattle weights are the heaviest in history thus far in 2022, which means more pounds to sell, supporting revenue.”
Feeder cattle
The March feeder cattle contract gained 40 cents to close at $156.35, and the April contract gained 20 cents to close at $162.60. The CME Feeder Cattle Index gained 50 cents to close at $152.81.
“Thankfully, it’s looking like the live cattle complex may be able to lend the feeder contracts some support as they’re continuing to trade higher,” said ShayLe Stewart, DTN livestock analyst, in her midday comments. “And, if cash cattle trade higher, then feeders would stand even a stronger chance at rallying again.”
Corn futures were also modestly higher, with the May contract up 9 cents to $7.58 and the July contract up 4 cents to $7.23.
Iowa: Russell Livestock in Russell sold 3,042 head Monday. Compared to two weeks earlier, steers under 750 lbs. sold mostly steady to $5 lower, while heavier steers were sharply lower. Heifer calves under 600 lbs. were sharply lower, and heavier heifers were mostly $2-5 lower. Benchmark steers averaging 780 lbs. sold between $150-159, averaging $157.13.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 4,422 head Monday. Compared to a week earlier, feeder steers sold steady to $5 higher, except 700 lbs. sold $8-11 higher, 750-800 lbs. sold $3-6 lower and 1,000-1,050 lbs. sold $1-2 lower. Feeder heifers sold steady to $5 higher, except 750-800 lbs. sold $1-4 lower, and 800-850 lbs. sold $2-3 lower. — Anna Miller, WLJ managing editor
