Tuesday markets
Cash trade has been at a standstill in the Southern Plains and Nebraska, and inactive on very light demand in the western Corn Belt. Last week live purchases moved at $105 and dressed purchases at $165. Only a total of 640 cash cattle traded today.
On the formula grid, 20,000 head traded at $170.30, weighing 887 lbs.
“The cattle contracts are thriving Tuesday afternoon as support has rallied the two markets substantially—especially the feeder cattle market,” reported DTN Livestock Analyst ShayLe Stewart.
Live cattle futures were all green: October up 95 cents to $108.90, December up $1.47 to $113.12 and February up $1.20 to $116.22.
The boxed beef cutouts were mixed today on 134 loads. The Choice cutout was down 56 cents to $217.16 and the Select cutout was up 57 cents to $206.99.
“If boxed beef prices can scale upward (even if it’s modestly) stronger beef demand could help feeders achieve another week of higher cash prices,” said Stewart.
Today’s slaughter is estimated at 120,000 head, 1,000 head below last week but 2,000 head above last year.
Friday’s Cattle on Feed report had cattle on feed at 104 percent of last year, August placements at 109 percent and August marketings at 97 percent.
“Increasing drought conditions, larger supplies of cattle outside feedyards, and improving price forecasts for the future,” the Cattle Report said. “Heavier placements of the past couple months are part of the carry forward from light placements last spring. Total numbers of replacement cattle outside feedyards will not permit continuing placements to show large increases over prior year.”
The report anticipates placements in October through the end of the year are likely to be moderate and next year there will be shorter supplies outside due to the slightly smaller calf crop.
“Seeing the cash cattle market rally higher for the last two weeks has really helped build somewhat of a positive mindset around the highly anticipated fall run of feeder cattle,” Stewart said.
Feeder cattle contracts rallied hard today: October up $2 to $142.92, November up $2.67 to $143.77, and January up $2.52 to $141.67. The latest known CME Feeder Cattle Index was $142.36, down 25 cents.
Yesterday, Tri-State Livestock Auction in McCook, NE, sold 3,675 head. Compared to last week, steers and heifers under 650 lbs. sold steady to $2 lower. Demand was good on a good selection offered.
Joplin Regional Stockyards in Carthage, MO, sold 6,125 head Monday. Compared to last week, steers under 750 lbs. sold $3-6 lower, heifers under 700 lbs. sold $4-7 lower, steers over 750 lbs. and heifers over 700 lbs. sold steady. Demand and supply were moderate. — Anna Miller, WLJ editor
