Tuesday markets
Cattle futures and boxed beef prices surged to new highs today, with market focus shifting from earlier screwworm concerns to strong momentum in cash feeders and futures.
Live cattle futures closed higher, with the August contract gaining $2.27 to close at $240.50 and the October contract up $1.37 to $237.02.
“Currently, the spot October contract is trading at a new contract high as traders seem to be pressing onward aggressively and are encouraged to see boxed beef prices up as much as they are,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments. “Still, no cash cattle trade has developed, but asking prices are noted in the South at $243 and remain unestablished in the North.”
Cash trade was nil, with USDA reporting no activity.
On the formula side, 32,700 head averaging 916 lbs. sold for an average of $381.45.
The national weekly direct beef type price distribution for the week of Aug. 18-25 was the following on a live basis:
• Negotiated purchases: $244.05.
• Formula net purchases: $243.10.
• Forward contract net purchases: $208.76.
• Negotiated grid net purchases: $246.58.
On a dressed basis:
• Negotiated purchases: $385.97.
• Formula net purchases: $380.64.
• Forward contract net purchases: $321.84.
• Negotiated grid net purchases: $386.49.
Today’s slaughter is estimated to be 118,000 head, 2,000 head above a week earlier.
Boxed beef prices continued to rally on 106 loads, with the Choice cutout up $4.68 to $413.17 and the Select cutout gained $5.38 to $390.76.
“Boxed beef prices exploded higher today, unusual the week prior to Labor Day and after what has already been an epic rally,” wrote Cassie Fish, market analyst, for The Beef. “Most likely end users are spooked about Q4 availability and technologies such as ‘suspended fresh’ provide end users a way to put down inventory earlier than they need without freezing product, thus ensuring critical Q4 supplies are available.”
Feeder cattle
Feeder cattle futures also gained triple digits, with the August contract up $2.37 to $363.22 and the September contract climbing $3.15 to $365.05.
The CME Feeder Cattle Index was $2.74 higher to close at $350.18.
Corn futures were lower, with the September contract down a penny to $3.87 and the December contract losing 2 cents to $4.09.
Iowa: Russell Livestock in Russell sold 3,668 head on Monday. An accurate comparison could not be made due to a lack of a recent auction. Benchmark steers averaging 734 lbs. sold for $380-399, averaging $388.92.
Texas: Giddings Livestock in Giddings sold 1,385 head on Monday. Compared to the last auction, feeder steers under 400 lbs. sold steady, while over 400 lbs. were steady to $4 higher. Feeder heifers sold steady to $4 higher across all weight classes. Benchmark steers averaging 718 lbs. sold for $323-348, averaging $334.10. — Charles Wallace, WLJ contributing editor
