Tuesday markets
Markets still found themselves in a slump today, with futures in the red and cash trade underwhelming.
“The end of Q3 is next week, and ideas of the cattle and beef market ‘getting back to normal’ have been abandoned. There have been so many extraordinary price moves of key prices and metrics that most analysts, if they are honest, are struggling with forecasting what’s to come,” remarked Cassie Fish, market analyst in The Beef.
Live cattle futures were down, with the October contract down 32 cents to $122.45 and the December contract down 27 cents to $127.80.
Cash trade was minimal again today. A total of 1,765 head sold, with live steers averaging $124. There were not enough dressed purchases for a market trend. On the formula side, a total of 25,500 head averaging 858 lbs. averaged $207.06.
“With the Cattle on Feed report being released Friday afternoon, there is a small chance some trade may hold out until after the report, although the movement of futures trade and interest by packers over the next two days will be the main focus of cash cattle trade,” wrote Rick Kment, DTN contributing analyst, in his midday comments.
The national weekly direct beef type price distribution for the week of Sept. 6 to Sept. 13 was the following on a live basis:
• Negotiated purchases: $124.10.
• Formula net purchases: $127.15.
• Forward contract net purchases: $127.70.
• Negotiated grid net purchases: $128.48.
On a dressed basis:
• Negotiated purchases: $198.54.
• Formula net purchases: $202.23.
• Forward contract net purchases: $198.01.
• Negotiated grid net purchases: $202.75.
Slaughter for the day is estimated at 122,000 head, bringing the week’s total to 241,000 head.
Boxed beef prices were lower on 175 loads, with the Choice cutout down $4.29 to $311.37 and the Select cutout down $2.74 to $278.01.
Feeder cattle
Feeders were also in the red today. The September contract lost 15 cents to close at $154.85, and the October contract lost 5 cents to close at $156.62. The CME Feeder Cattle Index gained 2 cents to close at $153.77.
“Although some market support is seen from the firmness in outside markets, there remains concern surrounding the ability to entice noncommercial traders back into the complex,” Kment said.
Corn futures were down, with the December contract down 4 cents to $5.17 and the March contract down 4 cents to $5.25.
Nebraska: Tri-State Livestock Auction in McCook, NE, sold 3,000 head Monday. Compared to the previous sale, steers under 550 lbs. were steady to $5 lower, and steers over 550 lbs. were $3-7 higher. Heifers were $1-6 lower, except on 450 lbs., which were $9 higher. Benchmark steers averaging 747 lbs. sold for $163.25. — Anna Miller, WLJ managing editor
