Tuesday markets
Cattle futures closed in the green as corn whipsawed higher but closed the day lower.
Live cattle closed higher, with the June contract up 12 cents to $135.32 and the August contract up 27 cents to $137.32.
“The contracts are rallying into Tuesday’s afternoon and the June contract is even toying with the idea of taking out the 40-day moving average,” ShayLe Stewart, DTN livestock analyst, wrote in the midday comments.
Cash trade was somewhat light today, with 3,758 head selling between $144-146, averaging $145.12. Dressed steers averaged $231.09. On the formula side, 34,100 head averaging 870 lbs. sold for $228.64.
The national weekly direct beef type price distribution for the week of April 25 to May 2 was the following on a live basis:
• Negotiated purchases: $143.53.
• Formula net purchases: $144.52.
• Forward contract net purchases: $144.79.
• Negotiated grid net purchases: $141.48.
On a dressed basis:
• Negotiated purchases: $232.50.
• Formula net purchases: $227.26.
• Forward contract net purchases: $224.99.
• Negotiated grid net purchases: $224.23.
Slaughter for today is projected to be 126,000 head, a thousand above last week. Monday’s slaughter was revised downward to 111,000 head.
“This past week’s slaughter at 656,000 head was revised downward to 649,000 as packers manage the size of the slaughter to provide some stability to the cutout prices,” the Cattle Report wrote. “This was caused by an adjustment to the Saturday number and was accompanied by a sharp cutback in Monday’s slaughter. The weekly slaughter size will determine the current status of fed supplies.”
USDA’s Agricultural Marketing Service released the National Weekly Fed Cattle Comprehensive report, showing quality grading at 80.9 percent and dressed weights lower to 870.5 lbs.
Boxed beef prices were lower on 176 loads, with the Choice cutout down $3 to $259.55 and the Select cutout down 89 cents to $247.34.
Feeder cattle
Feeder cattle closed higher on lower corn contracts, with the May contract up 97 cents to $162.40 and the August contract up $2.20 to $176.27.
“The market is going to continue to trade oppositely of that of the corn complex, but with moisture in the forecast, corn may have to allow feeders to take the market’s center stage this week,” Stewart said.
Corn contracts closed lower, with the May contract down 12 cents to $8 and the June contract down 10 cents to $7.93 a bushel.
Nebraska: Tri-State Livestock in McCook sold 960 head Monday. Compared to the previous auction, steers and heifers over 700 lbs. were $9-15 higher. A group of steers averaging 847 lbs. sold for $165.35.
Crop Progress
USDA’s Crop Progress report showed that 14 percent of the corn crop was planted. That was up from 7 percent last week but trails the five-year average of 33 percent. Planting in Kansas was 35 percent complete, near their 36 percent average, while Nebraska trails their 34 percent average pace, with 28 percent planted as of May 1. Iowa is 33 percent behind their average, currently at 9 percent planted. The National Agricultural Statistics Service reported that 3 percent of the national corn crop had emerged.
Nationwide, winter wheat was rated 27 percent good to excellent, unchanged from the previous week. The percentage of the crop rated very poor to poor increased 4 percentage points, from 39 percent the previous week to 43 percent as of Sunday.
“The winter wheat crop’s current good-to-excellent rating is the lowest for this time of year since a 23 percent rating was posted in 1989,” said Todd Hultman, DTN lead analyst, on Monday. “The largest winter wheat producer, Kansas, showed a good-to-excellent rating of 25 percent, the lowest for any time of year since the fall of 2018.” — Charles Wallace, WLJ editor
