Tuesday markets
Cattle futures rallied, pushing live and feeder contracts higher on stronger equities as prices surged to new all-time highs early in trading.
Live cattle futures closed higher, with the April contract up $1.90 to $252.55 and the June contract gained $2.90 to $251.42.
“The live cattle complex seems to be looking beyond Monday’s nervous state and has taken a bullish approach to Tuesday’s trade as the market is trading anywhere from $1 to $2 higher into Tuesday’s noon hour,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments.
According to the USDA, no cash trade occurred.
On the formula side, 18,000 head averaging 949 lbs. sold for an average of $388.99.
“The market seems to be portending higher fed cattle prices are in the cards as April ends and May begins,” wrote Cassie Fish, market analyst, in The Beef. “Based on the low fed cattle trade volume last week of 40k head and even with another low slaughter this week in the 505k to 515k area, packers appear to be short-bought and will need to replenish their cattle inventory. Cattle feeders continue to control the ball.”
The national weekly direct beef type price distribution for the week of April 6-13 was the following on a live basis:
• Negotiated purchases: $248.18.
• Formula net purchases: $244.03.
• Forward contract net purchases: $241.75.
• Negotiated grid net purchases: $243.96.
On a dressed basis:
• Negotiated purchases: $388.60.
• Formula net purchases: $383.86.
• Forward contract net purchases: $377.79.
• Negotiated grid net purchases: $377.93.
Today’s slaughter is estimated to be 112,000 head, 1,000 head below the previous week.
Boxed beef prices were mixed on 95 loads, with the Choice cutout $1.28 higher to $383.20 and the Select cutout $3.84 lower to $379.80.
Feeder cattle
Feeder cattle futures also saw some gains, with the April contract up $1.40 to $375.87 and the May contract $2.02 higher to $374.85.
The CME Feeder Cattle Index was $7.27 higher to $373.94.
Corn futures closed higher, with the May contract up 2 cents to $4.43 and the July contract up a penny to $4.52.
Iowa: Russell Livestock in Russell sold 3,520 head on Monday. A comparison could not be made due to the lack of a recent auction. Benchmark steers averaging 776 lbs. sold for $381-406, averaging $396.84.
South Dakota: Sioux Falls Regional in Worthing sold 5,597 head on Monday. Compared to the last auction, feeder steers and heifers sold $5-15 higher. Benchmark steers averaging 781 lbs. sold for $383-416, averaging $400.21. — Charles Wallace, WLJ contributing editor
