Tuesday markets
The cattle complex closed mixed as outside markets continue to weigh on the market. Some light, scattered trade has been reported in parts of the South at $143.
Live cattle closed mixed, with the October contract up 10 cents to $143.57 and the December contract down 45 cents to $146.90.
“Outside market concerns continue to weigh heavy on commodity prices, including cattle with concerns that a slower economy will hurt beef demand at the retail counter,” Todd Hultman, DTN lead analyst, wrote in the midday comments. “Last week’s unweighted average for live steers came in at $145.09 Monday, up $1.45 from the previous week. The unweighted average for dressed steers was $228.90, up $2.04 from the previous week. 116,546 of negotiated volume last week was an encouraging indication of packer demand, but this market remains spooked by outside market concerns and is vulnerable to more noncommercial selling.”
Cash trade was moderate, with 9,208 head selling between $143-145, averaging $143.48.
On the formula side, 32,000 head averaging 872 lbs. sold for $230.51.
The national weekly direct beef type price distribution for the week of Sept. 19-26 was the following on a live basis:
• Negotiated purchases: $145.10.
• Formula net purchases: $145.25.
• Forward contract net purchases: $144.35.
• Negotiated grid net purchases: $144.48.
On a dressed basis:
• Negotiated purchases: $228.98.
• Formula net purchases: $229.06.
• Forward contract net purchases: $226.74.
• Negotiated grid net purchases: $231.26.
Slaughter for the day is expected to be 128,000 head, the same as last week.
Boxed beef prices closed mixed on 177 loads, with the Choice cutout up 59 cents to $248.43 and the Select cutout down $2.14 to $221.21.
“Choice boxed beef is near its lowest prices in a year and a half, curiously low for an economy in the midst of an inflation problem,” Hultman wrote.
Feeder cattle
Feeder cattle closed lower due to higher corn contracts, with the September contract down $1.17 to $175.70 and the October contract down 95 cents to $176.12. The CME Feeder Cattle Index was down 89 cents to $177.82.
The Crop Progress report released yesterday showed 12% of corn was harvested as of Sept. 25, up 5 percentage points from the previous week. Mature corn was estimated at 58%, and 52% of the corn was rated in good-to-excellent condition.
Corn contracts closed higher but lost some ground at the close. The December contract was up a penny to $6.67, and the March contract was up 2 cents to $6.72.
Nebraska: Tri-State Livestock in McCook sold 2,030 head Monday. Compared to the last auction, steers were steady to $10 lower, and heifers were steady to $12 higher. A group of steers averaging 716 lbs. sold for $185.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 1,699 head Monday. Compared to the previous auction, feeder steers and heifers sold with lower undertones. The biggest demand continues to be for black-hided cattle, creating wide price gaps. Benchmark steers averaging 716 lbs. sold between $174-188, averaging $180.93. — Charles Wallace, WLJ editor
