Tuesday markets
Futures were red across all boards today, cattle and commodities alike. Cash trade has yet to develop over the week, with feedlots holding out.
“The live cattle market is enduring a tough go to Tuesday’s market as traders have grown leery of (supporting) the complex amid Monday’s surge in grain prices and as fundamental support in the market hasn’t shown any supportive gestures,” wrote ShayLe Stewart, DTN livestock analyst, in her midday comments.
Live cattle futures were in the red, with the October contract down 95 cents to $144.80 and the December contract down 90 cents to $150.45.
Cash trade was mostly inactive again today, with only 888 head sold. Live steers averaged $143. On the formula side, a total of 21,700 head averaging 880 lbs. averaged $227.71.
The national weekly direct beef type price distribution for the week of Sept. 5 to Sept. 12 was the following on a live basis:
• Negotiated purchases: $142.80.
• Formula net purchases: $146.22.
• Forward contract net purchases: $144.56.
• Negotiated grid net purchases: $145.51.
On a dressed basis:
• Negotiated purchases: $226.72.
• Formula net purchases: $231.61.
• Forward contract net purchases: $225.60.
• Negotiated grid net purchases: $232.42.
Slaughter for the day is estimated at 128,000 head, bringing the week’s total to 253,000 head.
Boxed beef prices were lower on 172 loads. The Choice cutout lost $2.28 to close at $256.66, and the Select cutout lost $2.18 to close at $233.58.
Feeder cattle
Feeder cattle futures were also lower by several dollars. The September contract lost $2.07 to close at $179.45, and the October contract lost $2.60 to close at $180.52.
“The feeder cattle market is fully absorbing Monday’s (World Agricultural Supply and Demand Estimates) report still and that’s why prices are fainting lower,” Stewart said. “It’s likely that prices in the countryside are noticeably lower too as buyers could be sitting on their bids until they better understand what this year’s corn crop is going to really amount to.”
The CME Feeder Cattle Index lost 85 cents to close at $180.06.
Corn futures were also lower, with the September contract down 3 cents to $7.09 and the December contract also down 3 cents to $6.92.
Oklahoma: Tulsa Livestock Auction in Tulsa sold 4,270 head on Monday. Compared to two weeks earlier, steers sold $6-8 higher, and heifers sold $4-7 lower. Benchmark steers averaging 769 lbs. sold between $160.50-170, averaging $164.84. — Anna Miller, WLJ managing editor
