Tuesday markets
Cattle futures closed lower as industry headlines left traders nervous.
“What’s behind today’s nervous vibe could be anything from Middle East tensions, to a New World Screwworm sighting in Mexico 60 miles from the U.S. border, to even mentions of the DOJ investigation into the packing industry in the headlines yesterday,” wrote Cassie Fish, market analyst, in The Beef.
Live cattle futures closed over $2 lower, with the April contract down $2.17 to $247.52 and the June contract $2.52 lower to close at $243.52.
Cash trade was light, with 690 head sold for $248.
On the formula side, 15,100 head averaging 954 lbs. sold for an average of $392.88.
The national weekly direct beef type price distribution for the week of April 13-20 was the following on a live basis:
• Negotiated purchases: $248.21.
• Formula net purchases: $249.05.
• Forward contract net purchases: $238.05.
• Negotiated grid net purchases: $248.48.
On a dressed basis:
• Negotiated purchases: $388.15.
• Formula net purchases: $391.25.
• Forward contract net purchases: $377.33.
• Negotiated grid net purchases: $382.40.
Today’s slaughter is estimated to be 111,000 head, 1,000 head below the previous week.
Boxed beef prices were higher on 111 loads, with the Choice cutout up $2.62 to $386.18 and the Select cutout $3.59 higher to $387.20.
“Boxes have time to head back to the April monthly high of $395.49 before the calendar turns to May,” Fish wrote. “There is no reason to doubt that the seasonal increase in wholesale beef demand will develop over the next couple of months and that there will be a seasonal increase in fed slaughter as well.”
Cattle futures
Cattle futures also closed lower, with the April contract down $2.30 to $366.65 and the May contract $2.55 lower to $358.52.
The CME Feeder Cattle Index lost $1.98 to $375.69.
Corn futures closed higher, with the May and July contracts up a penny to $4.53 and $4.61, respectively.
New Mexico: Roswell Livestock in Roswell sold 1,030 head on Tuesday. Compared to the last auction, steer calves 400-500 lbs. sold uneven and 500-550 lbs. were steady. Feeder steers 650-700 lbs. sold $10-15 lower. Heifer calves 450-550 lbs. sold $15 higher and 500-550 lbs. sold $20 lower. Feeder heifers had insufficient numbers to compare, but a lower market was evident. A group of steers averaging 767 lbs. sold for $342.50-359, averaging $352.34.
Texas: Giddings Livestock in Giddings sold 1,204 head on Tuesday. Compared to the last auction, feeder steers sold fully steady. Feeder heifers were steady to a few dollars lower. A group of steers averaging 717 lbs. sold for $365-388, averaging $374.30. — Charles Wallace, WLJ contributing editor
