Tuesday markets
Cattle futures closed firm but mixed, supported by strong boxed beef demand ahead of Labor Day and expectations of steady to higher fed cattle trade.
Live cattle futures were mixed, with the August contract down 40 cents to close at $236.32 and the October contract gained 17 cents to $231.35.
“It’s obviously helping that boxed beef prices continue to trek higher despite the already incredibly high price point at which the market is trading, but resistance pressure could at any time pressure the live cattle contracts and cause traders some anxiety,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments. “In the spot October contract, resistance pressure looms around $232, and currently, the contract is just roughly $0.50 away from that threshold.”
Cash trade was light, with only 48 head sold—not enough for a market trend.
On the formula side, 28,900 head averaging 912 lbs. sold for an average of $381.86.
The national weekly direct beef type price distribution for the week of Aug. 11-18 was the following on a live basis:
• Negotiated purchases: $242.15.
• Formula net purchases: $243.76.
• Forward contract net purchases: $208.09.
• Negotiated grid net purchases: $245.08.
On a dressed basis:
• Negotiated purchases: $383.08.
• Formula net purchases: $380.33.
• Forward contract net purchases: $323.18.
• Negotiated grid net purchases: $381.57.
Today’s slaughter is estimated to be 116,000 head, 2,000 head above a week earlier.
Boxed beef prices were higher on 103 loads, with the Choice cutout up $2.96 to $407.20 and the Select cutout up $2.62 to $379.76.
Feeder cattle
Feeder cattle futures closed higher, with the August contract gaining $1.65 to $350.55 and the September contract up $1.50 to close at $352.42.
“More than anything, the surge in the feeder cattle complex seems to be stemming from the fact that demand in the countryside remains utterly incredible, and that the live cattle complex is seeing plenty of support, which all bodes well with traders,” Stewart wrote.
The CME Feeder Cattle Index lost $3.58 to $342.17.
Corn futures closed lower, with the September and December contracts down 3 cents to $3.79 and $4.02, respectively.
New Mexico: Roswell Livestock in Roswell sold 481 head on Tuesday. Compared to the last auction, steer calves 300-450 lbs. sold $10-20 higher and 450-600 lbs. were $13-14 lower. Feeder steers 600-650 lbs. sold $5 higher. Heifer calves 300-350 lbs. sold $15-20 lower and 400-450 lbs. were steady to $1 lower. A group of steers averaging 731 lbs. sold for $335-352, averaging $345.96.
Texas: Giddings Livestock in Giddings sold 1,142 head on Monday. Compared to the last auction, feeder steers under 400 lbs. sold $12-15 higher, while steers over 400 lbs. were $5-9 higher. Feeder heifers under 400 lbs. sold $16-20 higher, while heifers over 400 lbs. were $4-6 higher. Benchmark steers averaging 720 lbs. sold for $320-340 and averaged $328.12. — Charles Wallace, WLJ contributing editor
