Tuesday markets
After Monday’s rally, Tuesday’s markets were more sluggish.
Negotiated cash trade was still at a standstill in all feeding regions. Only 294 cash cattle traded and 15,900 head sold on formula. The formula cattle averaged 891 lbs. and $170.06.
Live cattle futures traded sideways, with the December contract up only 5 cents to $111.88 and the February contract up 3 cents to $115.10.
“…As boxed beef prices continue to print stronger and as this week’s cash cattle trade is anticipated to be better, the futures market could grow stronger again later in the week,” remarked ShayLe Stewart, DTN livestock analyst, in her midday livestock comments.
Boxed beef prices traded substantially higher today, with the Choice contract up $4.86 to $222.25 and the Select contract up $6.18 to $208.55 on 136 loads. The day’s slaughter is estimated to be on trend with last week and last year at 120,000 head.
The latest Comprehensive Fed Cattle Weekly report showed last week’s carcass weights at 901 lbs., 24 lbs. above last year. Quality grade grading was 0.5 percent higher at 81.6 percent.
Feeder cattle
Feeder cattle markets saw a decline, mostly due to the December corn contract rising 15.5 cents in a day to $4.23.
“Following Monday’s robust rally on the futures market, the complex is seeing minimal followed through support from traders,” Stewart said. “Regardless, Monday’s move advanced the market far beyond where it was currently trading and so long as Tuesday’s pressure doesn’t advance to $2-3 losses, the market is still higher than last week’s close.”
Feeder cattle contracts closed lower but did not see losses in the dollars. The November contract lost 78 cents to $140.85 and the January contract lost 33 cents to $140.40. The CME Feeder cattle Index was up 27 cents to $135.85.
Roswell Livestock Auction in Roswell, NM, sold 1,284 head yesterday. Compared to last week, steer calves sold $13-17 higher; feeders sold $3-10 higher, with the most advance on a few 600-700 lbs. Heifer calves under 600 lbs. sold $9-16 higher, except 300-400 lbs. sold $20-31 higher. A group of value-added heifers weighing 368 lbs. sold at $158.50.
Ozarks Regional Stockyards in West Plains, MO, sold 4,500 head today. Compared to last week, feeder steers and heifers traded $5-10 higher with spots $15 higher. Demand was very good on a heavy supply. Steers averaging 723 lbs. sold between $137.50-142 and averaged $139.83. — Anna Miller, WLJ editor
