Tuesday markets
“On market turns, it is futures first, then cash cattle prices, then boxes and this time would appear no different,” remarked market analyst Cassie Fish in The Beef. “There is plenty of well-worn bearish news around but futures appear to have heard it enough times considering futures prices are at decade lows for this time of year.”
Live cattle contracts did see a slight rally today. The October contract was up 87 cents to $104.85, the December contract up 65 cents to $104.05, and the February contract up 62 cents to $107.02.
Cash cattle trade was uneventful today with 670 head sold and trade unlikely to develop until after Wednesday. There were not enough purchases for a full market trend.
“With live cattle prices faring better than expected, feeders are hopeful to push cash cattle trade to the end of the week and bat for at least steady prices,” reported DTN Livestock Analyst ShayLe Stewart.
Boxed beef prices were mixed: On 175 loads, the Choice cutout was down $1.13 to $206.70 and the Select cutout was up 18 cents to $188.67.
Today’s slaughter is estimated at 117,000 head, down from last week’s 121,000 head but above last year’s 113,000 head. Yesterday’s slaughter was revised from 118,000 head to 115,000 head.
Feeder cattle
“The feeder cattle market took the brunt of last week’s downward spiral but come Tuesday the market is taking full advantage of the building support,” reported Stewart.
CME feeder cattle contracts were all up: The October contract was up 60 cents to $134.30, the November contract up $1.72 to $132.30 and the January contract up $1.65 to $128.42. The latest known CME Feeder Cattle Index was down 6 cents to $133.64. The December corn contract has remained steady at $4.16, down a penny and a quarter from yesterday.
“Feeder cattle and calves sold mostly lower throughout the countryside Monday afternoon, but it was interesting to see sale receipts lower than the previous week,” Stewart said. “As cow-calf producers saw a weaker market they revaluated their marketing strategy, and some decided to wait a little longer for a better market.”
Yesterday, Russell Livestock in Russell, IA, sold 3,394 head. Compared to two weeks ago, steers 550-650 lbs. sold steady to $3 higher and those 650-900 lbs. were $5.50-9.50 lower. Heifers under 550 lbs. were steady to $10 lower, while the 550-700-lb. heifers were $5-10 lower. The 700-750-lb. heifers were $2 higher. Heifers over 750 lbs. did not have enough numbers both weeks to compare. Demand was moderate to good for the heavy offerings. Trading was active. Benchmark steers weighing 774 lbs. sold between $135.75-145.10. — Anna Miller, WLJ editor
