Tuesday markets
The cattle complex traded mixed today as the corn market made up some of the losses in yesterday’s trade.
Live cattle contracts traded higher today, with the June contract up 40 cents to $118.62 and August higher $1.70 to $122.05.
“The market has every reason to trade higher with soaring beef prices, loyal consumers and lots of room to trade before the market nears resistance again,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments. “The cash cattle market has yet to test the waters this week and maybe, just maybe, feedlots will have a chance at keeping prices at least steady if both the board and boxes continue to trade higher.”
Cash trade was more active today compared to yesterday, with 6,927 head selling at $120. Dressed steers sold between $190-191. On the formula side, 22,600 head averaging 850 lbs. sold for $192.67.
Cassie Fish of The Beef stated, “a regional packer paid $121 live in central Nebraska, compared to a 5-area average price last week of $118.36. There is a rumor the same regional packer bid $191 dressed (compared to $188 and $189 last week) and $120 in western Nebraska.
“There are rumors of one major packer also bidding $191 dressed in spots in Iowa and Nebraska. Being it is only Tuesday, it isn’t a stretch to read the cash cattle trade activity as positive.”
Slaughter is projected at 118,000 head, slightly lower than last week’s numbers and well above last year’s 94,000 head.
Boxed beef prices continued their upward momentum, with the Choice cutout higher $3.26 to $312.37 and the Select cutout up $2.58 to $296.34 on 106 loads.
Feeder cattle
Feeder cattle were mixed today, with the May contract down 12 cents to $135.32 and the August contract higher 15 cents to $148.85. The CME Feeder Cattle Index was lower 68 cents to $130.15.
“Signing up to keep tabs on the feeder cattle market feels a lot like signing up to test a never-ending roller coaster that has the biggest twists and turns ever seen,” Stewart commented. “Corn prices shoot higher, feeder cattle crash lower; corn prices shoot lower, cattle scamper higher—and the drastic nature of the changes is never mild.”
Corn contracts traded higher today, with the May contract up 11 cents to $7.59 a bushel and the July contracts also higher 10 cents to $7.22.
“Corn prices are on a volatile roller coaster, with above-average planting progress and forecasts for more rain keeping new crop in check while old crop runs where it will,” Fish wrote. “There is a WASDE report tomorrow and May corn expires Friday.”
Iowa: Russell Livestock in Russell sold 3,995 head on Monday. Compared to the last auction, steer calves under 550 lbs. sold steady to $2 lower and the heavier steers were $4 to sharply higher. Heifer calves under 600 lbs. sold $5-8 lower and heifers over 600 lbs. were steady to sharply higher. Benchmark steers averaging 777 lbs. sold between $139.50-148.
New Mexico: Roswell Livestock in Roswell sold 1,055 head on Monday. Compared to the prior sale, steer calves under 600 lbs. sold steady to $2 lower, feeders over 600 lbs. were $1 lower. Heifer calves under 600 lbs. sold $8 lower. A group of steers averaging 529 lbs. sold between $159-163. — Charles Wallace, WLJ editor
