Tuesday markets
Cattle futures rallied on strong technical support and higher cash trade.
Live cattle futures continued their rally, with the April contract $2.25 higher to $252.67 and the June contract up $4.55 to $253.50.
“More than anything, it appears traders have more than enough technical support flooding the complex and there’s speculation fed cash cattle prices may even trade higher later this week,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments. “It’s odd to see it this early in the week, but some bids have already surfaced in the countryside; but no cattle have traded yet.”
Cash trade was moderate, with 4,034 head sold. Live steers sold for $250-252, and dressed steers sold between $395-396.
On the formula side, 20,600 heads averaging 965 lbs. sold for an average of $393.90.
The national weekly direct beef type price distribution for the week of April 20-26 was the following on a live basis:
• Negotiated purchases: $246.64.
• Formula net purchases: $251.56.
• Forward contract net purchases: $242.71.
• Negotiated grid net purchases: $250.63.
On a dressed basis:
• Negotiated purchases: $386.37.
• Formula net purchases: $393.64.
• Forward contract net purchases: $378.41.
• Negotiated grid net purchases: $385.42.
Today’s slaughter is estimated to be 109,000 head, 2,000 head below the previous week.
Boxed beef prices were mixed on 98 loads, with the Choice cutout 66 cents lower to $388.90 and the Select cutout up 18 cents to $388.78.
Feeder cattle
Feeder cattle futures were also bullish, with the April contract $1.50 higher to $372.07 and the May contract up $4.27 to $371.72.
The CME Feeder Cattle Index was up 2 cents to $369.34.
Corn futures closed higher, with the May contract up 4 cents to $4.65 and the July contract 6 cents higher to $4.75.
Iowa: Russell Livestock in Russell sold 4,343 head on Monday. Compared to the last auction two weeks ago, steers sold mostly $5-33 lower. Heifers under 550 lbs. were mostly $2-26 higher, while heifers over 550 lbs. sold $9-25 lower. Benchmark steers averaging 733 lbs. sold for $395-423.75, averaging $417.41.
Texas: Giddings Livestock in Giddings sold 831 head on Monday. Compared to the last auction, feeder steers were fully steady to $4 higher. Feeder heifers sold $4-8 higher. A group of steers averaging 706 lbs. sold for $365-375, averaging $370.95. — Charles Wallace, WLJ contributing editor
