Tuesday markets
“Buyers quickly stepped back into cattle futures Tuesday morning as traders tried to ‘balance the scales’ following active liquidation in live cattle trade Monday,” reported Rick Kment, DTN analyst. “Firm underlying gains in live cattle and feeder cattle futures helped to minimize the fears that a widespread market freefall is developing.”
Kment noted the recent market shifts over the last week is setting up the potential for a strong sideways market trend that could hold through most of October, as traders wrestle with short-term beef demand growth and uncertainty of market-ready cattle still waiting to be shipped.
A few live purchases traded from $107-108 in Nebraska today, but the cash market has been limited on very light demand. Cash trade was at a standstill in the Southern Plains. A total of 4,918 head sold today, compared to last week’s 248 head. On the formula grid, 12,000 head weighing 905 lbs. sold at $170.54. The bulk of trade will likely occur at the end of the week, similar to last week.
CME live cattle futures were up: October live cattle closed 45 cents higher at $108.82, December live cattle closed 40 cents higher at $111.22, and February live cattle closed 57 cents higher at $113.65.
Today’s slaughter is estimated at 120,000 head, on trend with last week and 1,000 head more than last year. Boxed beef prices are lower with the Choice cutout down $2.18 to $212.44 and the Select cutout down 26 cents to $200.08 on 157 loads.
“2020 has taken its toll on the cattle feeding industry,” remarked Cassie Fish, market analyst in The Beef. “Cattle feeders are tired having lived the most difficult year in over 40 years. The packing industry has had historic challenges too, but the profit outcome has been markedly different for them.”
Feeder cattle led the market higher with October feeder cattle futures closing 82 cents higher at $138.12, November feeders $1.27 higher at $136.82 and January feeders 57 cents higher at $134.22.
“For now, the feeder cattle market direction continues to be a day-to-day situation with traders closely focusing on both beef values and outside grain market moves,” Kment said.The CME Feeder Cattle Index was down 52 cents to $140.71.
Joplin Regional Stockyards in Carthage, MO, sold 5,433 head yesterday. Compared to last week, steers under 700 lbs. sold $3-5 lower; over 700 lbs. sold steady to $3 lower; heifer calves sold steady to $3 lower; and yearling heifers sold steady. Demand and supply were moderate.
Oklahoma National Stockyards in Oklahoma City, OK, sold 6,867 head yesterday. Compared to last week, feeder steers and heifers traded $6-8 lower, with instances of $10 lower. Steer and heifer calves traded $4-6 lower, with a few trades sharply lower as much as $8-10 lower. Demand was light to moderate.
Tri-State Livestock Auction in McCook, NE, sold 2,515 head yesterday. Compared to last week, steers and heifers were $3-11 lower. Demand was moderate. — Anna Miller, WLJ editor
