Tuesday markets
Cattle futures closed mostly higher on news that workers at the Fort Morgan, CO, plant approved a contract.
“Late Monday afternoon, news broke that workers at the Cargill plant in Fort Morgan, Colorado, have agreed to come back to work after the union voted to ratify a contract that will increase wages,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments. “The plant has been closed since May but hopes to be processing cattle the week of Sept. 7. This news has obviously come as a breath of fresh bullish air to the marketplace and is helping drive the cattle contracts higher.”
Live cattle futures closed slightly higher, with the August contract up 35 cents to $224.90 and the October contract 15 cents higher to $218.92.
Cash trade was light, with 1,880 head sold for $226. On the formula side, 28,000 head averaging 944 lbs. sold for an average of $375.26.
The national weekly direct beef type price distribution for the week of Aug 10-17 was the following on a live basis:
• Negotiated purchases: $227.99.
• Formula net purchases: $238.18.
• Forward contract net purchases: $242.42.
• Negotiated grid net purchases: $251.29.
On a dressed basis:
• Negotiated purchases: $365.18.
• Formula net purchases: $374.11.
• Forward contract net purchases: $381.93.
• Negotiated grid net purchases: $374.66.
Today’s slaughter is estimated to be 106,000 head, 2,000 head below the previous week.
Boxed beef prices were higher on 118 loads, with the Choice cutout up $11.58 to $391.15 and the Select cutout $2.03 higher to $366.29.
“A monster rally in midday boxed beef values is another positive today, though that hasn’t been able to propel futures to new highs either,” wrote Cassie Fish, market analyst, in The Beef. “The rib primal alone was $23 higher than last night. August boxed beef rallies are expected and early interest in the rib is as well. It’s likely boxes will top out this week, but when they start their next seasonal retracement, the packer will likely be black.”
The lean beef trim contracts were unchanged. The 50% lean trim August contract was unchanged at $161, and the September contract was also unchanged at $151. The 90% lean beef trim August contract was unchanged at $449, and the September contract was also unchanged at $445.
Feeder cattle
Feeder cattle futures closed mixed, with the August contract down 75 cents to $339.22 and the September contract up 40 cents to $333.35.
The CME Feeder Cattle Index was $4.07 lower to $344.43.
Corn futures closed lower, with the September and December contracts down a penny to $4.63 and $4.88, respectively.
New Mexico: Roswell Livestock in Roswell sold 486 head on Tuesday. Compared to the last auction, steer calves sold lower, except for 450-500 lbs., which were $25 higher. Weaned calves brought a premium. Feeder steers and heifers had no comparable numbers, but the overall trend was higher. Heifer calves 300-400 lbs. sold higher and 450-600 lbs. sold lower. Benchmark steers averaging 733 lbs. sold for $330-350, averaging $331.61.
Texas: Giddings Livestock in Giddings sold 1,136 head on Monday. Compared to the last auction, feeder steers sold $10-20 lower. Feeder heifers sold $10-15 lower. Benchmark steers averaging 727 lbs. sold from $315-340, averaging $322.42. — Charles Wallace, WLJ contributing editor
