Tuesday markets
“The livestock complex is met with modest support through Tuesday’s market and all the contracts are happy to trade higher regardless of how much the price jump amounts to,” wrote ShayLe Stewart, DTN livestock analyst, in her midday comments.
Live cattle futures were higher, with the April contract up $1.15 to $139.05 and the June contract up $1.52 to $135.45.
“It remains to be seen just how much the futures market can claw back. Some may maintain the cattle futures market has made a major bottom, but given the uncertainty around the globe and the fact the cattle feeding industry is less than 60 days from its significant seasonal increase in supply, many will continue to look over their shoulder,” wrote Cassie Fish, market analyst, in The Beef.
There was some cash trade, with 15,710 head sold. Live steers sold from $137-138, and there was no market trend for dressed steers. On the formula side, 25,700 head averaging 868 lbs. sold for an average of $231.19.
“Negotiated fed cattle trade started at a trickle yesterday at $138 live and $222 dressed and has continued today and at a faster pace in Kansas, Nebraska, and Iowa,” Fish said. “That’s over $2 lower than last week’s average and down over $5 from two weeks ago.”
The national weekly direct beef type price distribution for the week of Feb. 28 to March 7 was the following on a live basis:
• Negotiated purchases: $140.84.
• Formula net purchases: $144.88.
• Forward contract net purchases: $143.34.
• Negotiated grid net purchases: $143.71.
On a dressed basis:
• Negotiated purchases: $224.65.
• Formula net purchases: $228.51.
• Forward contract net purchases: $217.67.
• Negotiated grid net purchases: $225.64.
Slaughter through the day is estimated at 125,000 head, 1,000 head more than the same time last week.
Boxed beef prices dropped lower, with the Choice cutout down $2.27 to $252.44 and the Select cutout down $5.28 to $244.94.
“With boxed beef prices lower on Tuesday’s midday report, it doesn’t appear the bottom of the boxed beef market has been found—though we know it’s coming,” Stewart said.
Feeder cattle
Feeder cattle futures were mixed. The March contract lost 57 cents to close at $154.02, and the April contract gained 65 cents to close at $160.32. The CME Feeder Cattle Index lost $1.26 to close at $154.11.
Corn futures were modestly higher. The March contract gained 5 cents to close at $7.54, and the May contract gained 2 cents to close at $7.53.
“While the day is celebrating moderate support throughout the futures complex, it’s important to keep a sober perspective of the markets amid war,” Stewart said. “Take Monday’s gains, take Tuesday’s gains, but know that as war continues to wreak havoc in Ukraine, volatility still lingers throughout the market.”
New Mexico: Roswell Livestock Auction in Roswell sold 707 head on Monday. There were no recent sales to compare to. Benchmark steers averaging 775 lbs. sold between $136-145.50, averaging $142.34.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 3,358 head Monday. Compared to a week earlier, feeder steers 550 lbs. and below sold $11-14 lower, 600-800 lbs. sold $5-9 lower, 800-900 lbs. sold $3-4 lower and 900-950 lbs. sold $8-9 lower. Feeder heifers under 600 lbs. sold $7-11 lower, 600-750 lbs. sold steady to $3 lower and 750-950 lbs. sold $5-9 lower. Benchmark steers averaging 730 lbs. sold between $156.75-166.50, averaging $159.72. — Anna Miller, WLJ managing editor
