Tuesday markets
It’s turnaround Tuesday as cattle futures followed in the equities footsteps, closing higher.
Live cattle futures were higher, with the April contract up $1.60 to $211.37 and the June contract up $2.52 to $206.27.
“The market is close to nearing resistance pressure in the spot June contract, but if fundamental support is ample this week (especially in the form of strong box prices and fed cash cattle prices), there’s a chance that traders could take on the market’s resistance,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments.
Cash trade was minimal, with only 316 head sold for $211.
On the formula side, 22,500 heads averaging 903 lbs. sold for an average of $328.63.
The national weekly direct beef type price distribution for the week of April 14-21 was the following on a live basis:
• Negotiated purchases: $211.53.
• Formula net purchases: $210.10.
• Forward contract net purchases: $200.11.
• Negotiated grid net purchases: $215.12.
On a dressed basis:
• Negotiated purchases: $336.22.
• Formula net purchases: $333.21.
• Forward contract net purchases: $313.74.
• Negotiated grid net purchases: $339.50.
Today’s slaughter is estimated to be 123,000 head, 1,000 head above the previous week.
Boxed beef prices were lower on 134 loads, with the Choice cutout lower $1.79 to $331.73 and the Select cutout down $1.12 to $317.65.
“What’s also important is that these small slaughters have not resulted in a sharp boxed beef rally,” Cassie Fish, market analyst, wrote in The Beef. “Instead, choice boxes continue in the $330 to $340 trading range this month, today printing smack in the middle at $335.05/cwt. What is occurring in real-time is unprecedented in the beef business on multiple fronts at time when the market finds itself at record high prices and a large majority of players confident prices will continue to advance well into 2026.”
Feeder cattle
Feeder cattle futures were higher, with the May contract up $1.40 to $286.92 and the August contract up $2.10 to $291.25.
The CME Feeder Cattle Index was down $1.15 to $292.42.
Corn futures were lower, with the May and July contracts down 6 cents to $4.75 and $4.83, respectively.
Iowa: Russell Livestock in Russell sold 2,353 head on Monday. Compared to the last auction two weeks ago, steers sold $6-33 higher, while heifers sold $12 to sharply higher. Benchmark steers averaging 760 lbs. sold for $304.50.
Nebraska: Tri-State Livestock in McCook sold 900 head on Monday. There were not enough comparable sales for an accurate comparison. Benchmark steers averaging 772 lbs. sold for $293-302.50, averaging $297.58. — Charles Wallace, WLJ contributing editor
