Tuesday markets
Both live and feeder cattle markets traded higher, making up for losses at the end of last week.
Live cattle made up some ground lost in the past few days, with the December contract up $1.10 to $129.95 and the February contract up $1.32 to $135.22.
“Showlists are lighter this week, boxed beef prices are finding support, processing speeds are moving right along and the futures market is showing interest in supporting this week’s rally; now, all feedlots have to do is move the cash cattle market higher,” ShayLe Stewart, DTN livestock analyst, wrote in the midday comments.
Cash trade was light, with 1,373 head sold—not enough for a market trend. Negotiated cash trading has been at a standstill in the Southern Plains. In Nebraska, negotiated cash trading has been limited on very light demand and mostly inactive in the western Corn Belt—not enough purchases for a market trend in these regions. On the formula side, 21,400 head averaging 878 lbs. sold for $201.26.
The national weekly direct beef type price distribution for the week of Oct. 25 to Nov. 1 was the following on a live basis:
• Negotiated purchases: $126.32.
• Formula net purchases: $127.08.
• Forward contract net purchases: $128.12.
• Negotiated grid net purchases: $126.27.
On a dressed basis:
• Negotiated purchases: $199.87.
• Formula net purchases: $201.03.
• Forward contract net purchases: $197.37.
• Negotiated grid net purchases: $199.15.
Slaughter for the day is projected to be 122,000 head, the same as last week.
Boxed beef prices were mixed on 114 loads, with the Choice cutout down 20 cents to $287.38 and the Select cutout up $1.74 to $266.13.
Feeder cattle
Feeder cattle followed along with live cattle with triple-digit gains. The November contract was up $3.17 to $157.57, and the January contract was up $4.30 to $157.02. The CME Feeder Cattle Index was up 68 cents to $156.56.
“With the live cattle market seeing excellent fundamental support (and encouraging technical support), the feeder cattle market has been itching to trade higher along with its fellow cattle counterpart but has held back as the corn market’s recent rally demanded serious attention,” Stewart said.
Corn futures were lower, with the December contract down 6 cents to $5.73 and the March contract down 5 cents to $5.81 a bushel.
Nebraska: Tri-State Livestock in McCook sold 1,431 head on Monday. Compared to the last auction, steers and heifers were steady to $2 higher. Benchmark steers averaging 622 lbs. sold between $154-160.50, averaging $159.46.
New Mexico: Roswell Livestock in Roswell sold 1,826 head on Monday. Compared to the previous auction, steer and heifer calves under 600 lbs. sold $2 higher, with instances of $6 higher on weaned offerings. Feeders sold steady to $1 higher. A group of steers averaging 609 lbs. sold between $140-150, averaging $148.75. — Charles Wallace, WLJ editor
