Tuesday markets
After starting the week stronger, markets saw some volatility today.
Live cattle contracts were mixed: The April contract was unchanged at $120.97 and the June contract was down 42 cents to $122.22.
“Thankfully the market’s fundamentals (boxed beef prices, cash prices and slaughter speed) all push towards stronger trade given that demand is so strong,” remarked ShayLe Stewart, DTN livestock analyst, in her midday comments.
Some cash trade took place today at $116.11. Formula cattle averaging 844 lbs. sold for $187.95.
Boxed beef prices were higher on 149 loads: The Choice cutout was up $5.30 to $244.83 and the Select cutout was up $3.42 to $235.92.
Slaughter for the day is projected at 120,000 head, bringing the week’s total to 239,000 head.
Feeder cattle
Feeder cattle contracts were also mixed. The April contract was down 25 cents to $146.82 and the May contract was unchanged at $152.20. CME reported its latest Feeder Cattle Index up $2.11 to $138.86. The May corn contract was down almost 10 cents to $5.37.
“With cost of gains being one of the biggest limiting factors in recent months to the feeding industry, the feeder cattle contracts see Tuesday’s lower grain trade as a chance to move their market higher and believe the momentum in the cash cattle market could rejuvenate the live cattle contracts later in the week,” Stewart commented at the noon hour.
Iowa: Russell Livestock sold 2,947 head Monday. Compared to the last sale two weeks prior, steer calves 450-600 lbs. were steady to mostly $6 higher; 600-850 lbs. were $8-12 higher. Heifer calves 450-650 lbs. sold $8-12 higher; 650-850 lbs. were mostly $4-7 higher. Benchmark steers averaging 777 lbs. sold between $143.50-151.75.
New Mexico: Roswell Livestock Auction sold 904 head Tuesday. Compared to the prior sale, 400-600-lb. heifers and steers sold mostly $4 higher. Feeders over 600 lbs. sold steady to $1 higher. A small group of steers averaging 555 lbs. sold for $168. — Anna Miller, WLJ managing editor
