Tuesday markets
It may be April Fools’ Day, but there was no joking around in Tuesday’s cattle markets.
Live cattle futures closed higher, with the April contract up $1.32 to $209.12 and the June contract up $1.77 to $205.47.
“Following the market’s lower ascend on both Friday and Monday, traders now again sit in a better technical position as they are no longer up against immediate resistance pressure,” wrote ShayLe Stewart, DTN livestock analyst, in her midday comments.
Cash trade was limited over the day, with less than 200 head sold. On the formula side, a total of 23,700 head averaging 914 lbs. averaged $337.17.
“There is little to nothing going on in the country and no one expects any negotiated fed cattle trade to begin until at least Thursday,” said Cassie Fish, market analyst, in the Beef. “Packers did give up some inventory last week but still have a decent position.”
The national weekly direct beef type price distribution for the week of March 24-31 was the following on a live basis:
• Negotiated purchases: $211.92.
• Formula net purchases: $211.43.
• Forward contract net purchases: $195.91.
• Negotiated grid net purchases: $209.59.
On a dressed basis:
• Negotiated purchases: $337.36.
• Formula net purchases: $331.67.
• Forward contract net purchases: $313.91.
• Negotiated grid net purchases: $326.46.
Today’s slaughter is estimated to be 123,000 head, 1,000 head below a week earlier.
Boxed beef prices were higher on 95 loads. The Choice cutout gained $6.96 to close at $342.22, and the Select cutout gained $2.06 to close at $322.07.
“As was the case in March, today’s big gains are all due to surging values for middles—the rib primal up nearly $25/cwt and the loin up $14/cwt,” Fish said. “These are massive daily gains and stronger than the seasonal.”
Feeder cattle
Feeder cattle futures also closed higher, with the April contract up $1.82 to $288.27 and the May contract up $2.65 to $287.15.
The CME Feeder Cattle Index lost 91 cents to close at $286.76.
Corn futures were higher, with the May contract up 4 cents to $4.61 and the July contract up 5 cents to $4.68.
Nebraska: Tri-State Livestock in McCook sold 1,667 head on Monday. There were not enough sales at the previous auction for an accurate comparison. Benchmark steers averaging 738 lbs. sold between $304.50-307, averaging $304.77. — Charles Wallace, WLJ contributing editor
