Tuesday markets
Cattle futures dramatically resumed their uptrend, rallying sharply on surging boxed beef prices.
“Today, the market sets its sights on last week’s life-of-contract highs,” wrote Cassie Fish, market analyst, in The Beef. “When market watchers went home Friday evening, many were wondering if the market had topped. Today’s action is answering that question with a resounding, not yet.”
Live cattle futures climbed over $2, with the August contract up $2.75, closing at $235.82 and the October contract climbing $2.92 to $229.02.
Cash trade was light, with 237 head sold for $232.
On the formula side, 28,800 head averaging 920 lbs. sold for an average of $381.40.
The national weekly direct beef type price distribution for the week of Aug. 4-11 was the following on a live basis:
• Negotiated purchases: $241.35.
• Formula net purchases: $241.41.
• Forward contract net purchases: $203.85.
• Negotiated grid net purchases: $240.44.
On a dressed basis:
• Negotiated purchases: $381.58.
• Formula net purchases: $378.99.
• Forward contract net purchases: $318.35.
• Negotiated grid net purchases: $380.33.
Today’s slaughter is estimated to be 114,000 head, 1,000 head below a week earlier.
Boxed beef prices closed higher on 105 loads, with the Choice cutout up $9.06 to $390.58 and the Select cutout up $6.03 to $365.64.
Feeder cattle
Feeder cattle futures surged over $5, with the August contract gaining $5.15 to $245.37 and the September contract up $5.65 to close at $346.25.
The CME Feeder Cattle Index gained $3.83 to $341.04.
“As seen Monday afternoon through the day, the CME feeder cattle index closed at $341.04, up $3.83 from the previous day,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments. “Feeder cattle demand remains red hot in the countryside as buyers still have orders to fill and they know supplies aren’t going to become numerous anytime soon.”
Corn futures closed lower following a less-than-favorable USDA report showing ending stocks estimates were bearish for corn. The September and December contracts closed down 13 cents to $3.71 and $3.94, respectively.
Nebraska: Tri-State Livestock in McCook sold 975 head on Monday. An accurate comparison could not be made. A group of steers averaging 776 lbs. sold for $343.
Texas: Giddings Livestock in Giddings sold 1,111 head on Monday. Compared to the last auction, feeder steers under 500 lbs. sold $8-10 higher, while steers over 500 lbs. were up $4-6. Feeder heifers under 500 lbs. sold $10-12 higher, while over 500 lbs. were up $6-8. — Charles Wallace, WLJ contributing editor
