Tuesday markets
Cattle futures continued their climb, but June live cattle futures cannot push past the $200 mark.
“As the tariff news quiets down, the cattle bull market story has regained traction, and many are hopeful that new highs are still in store for this long-term bull market,” Cassie Fish, market analyst, wrote in The Beef. “The key reversal scored in March remains unchallenged and the gap left over head on April 4 seems begging to be filled.”
Live cattle futures were higher, with the April contract up 85 cents to $204.80 and the June contract up 72 cents to $199.80.
Cash trade was nonexistent, with only 70 head sold.
“Cattle feeders are also bullish cash fed cattle prices this week,” Fish wrote. “Two very small slaughters for the first two weeks of April have not phased the cattle feeder, who is content to feed cattle as long as it suits them. Most are calling this week’s cash trade higher, believing that despite multiple margin woes and export troubles, packers will pay up again.”
The national weekly direct beef type price distribution for the week of April 7-14 was the following on a live basis:
• Negotiated purchases: $207.68.
• Formula net purchases: $213.60.
• Forward contract net purchases: $201.41.
• Negotiated grid net purchases: $216.40.
On a dressed basis:
• Negotiated purchases: $328.02.
• Formula net purchases: $337.24.
• Forward contract net purchases: $314.97.
• Negotiated grid net purchases: $339.52.
Today’s slaughter is estimated to be 122,000 head, the same as the previous week.
Boxed beef prices were lower on 147 loads, with the Choice cutout down 20 cents to $335.43 and the Select cutout down 61 cents to $315.24.
The Cattle on Feed pre-report estimates show that feedlots with 1,000 head or greater will be 98.3% for cattle on feed in April. Placements in March are estimated to be 103.7%, and marketings for March are predicted at 100.7%.
Feeder cattle
Feeder cattle futures rose triple digits, with the April contract up 1.32 to $289.37 and the May contract up $1.57 to $282.52.
“The feeder cattle complex is continuing to trade higher, not fearful of filling in the gap that was created when tariffs were brought to the forefront of everyone’s mind a little over a week ago,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments. “Demand has seemed to improve again this week for feeder cattle in the countryside as buyers are pleased to see the futures complex again finding ease in the marketplace.”
The CME Feeder Cattle Index was up $1.03 to $287.16.
Corn futures were lower, with the May and July contracts down 3 cents to $4.81 and $4.89, respectively.
Nebraska: Tri-State Livestock in McCook sold 1,000 head on Monday. There were not enough sales for an accurate comparison. A group of steers averaging 764 lbs. sold for $286.
New Mexico: Roswell Livestock in Roswell sold 883 head on Tuesday. Compared to the last auction, steer calves 300-350 lbs. sold $10 lower, and 350-600 lbs. were $11-20 higher. Feeder steer and heifers had no comparable sales. Heifer calves 300-350 lbs. and 550-600 lbs. sold $10 lower, while 350-550 lbs traded $12-19 higher. A group of steers averaging 716 lbs. sold for $305. — Charles Wallace, WLJ contributing editor
