Tuesday markets
Cattle futures closed higher despite the news that negotiations fell through between Cargill and the Teamsters at the Fort Morgan, CO plant.
Live cattle futures closed higher, with the August contract up 85 cents to $231.95 and the October contract $1.17 higher to $227.90.
“The live cattle complex is back to trading higher as traders find some mild support in stronger boxed beef prices, and hope that later this week, the fed cash cattle market will lend the market even more support,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments.
Cash trade was light, with only 70 head sold. On the formula side, 19,600 head averaging 931 lbs. sold for an average of $369.14.
“No cash cattle trade has developed yet, but bids are currently on the table at $368 in Nebraska,” Stewart wrote. “But with feedlot managers potentially seeing an opportunity in the market to push prices higher again this week, it’s likely that trade will be delayed until the later part of the week.”
The national weekly direct beef type price distribution for the week of July 27 to Aug 3 was the following on a live basis:
• Negotiated purchases: $233.23.
• Formula net purchases: $238.24.
• Forward contract net purchases: $239.46.
• Negotiated grid net purchases: $251.29.
On a dressed basis:
• Negotiated purchases: $364.84.
• Formula net purchases: $375.70.
• Forward contract net purchases: $379.56.
• Negotiated grid net purchases: $393.18.
Today’s slaughter is estimated to be 110,000 head, 4,000 head above the previous week.
Boxed beef prices were higher on 120 loads, with the Choice cutout up $2.92 to $369.65 and the Select cutout up $2.05 to $346.50.
“Boxed beef sales volume improved last week and values are seeing a nice rally this week off the low, nearly $9 higher in just a couple of days,” Cassie Fish, market analyst, wrote in The Beef. “The rally is being led by the middle meats. There has been a drop off in the number of Choice and Prime cattle noted in the most recent USDA data, the combined percentage making a new 2026 low at just above 86% after pushing well over 89% earlier this year.”
The 50% lean trim contract remained unchanged, with the August contract at $171 and the September contract at $161. The 90% lean beef trim contracts also remained unchanged, with the August contract at $457 and the September contract at $453.
Feeder cattle
Feeder cattle closed triple digits higher, with the August contract up $3.37 to $351.20 and the September contract $3.60 higher to $346.15.
The CME Feeder Cattle Index was up $1.06 to $346.89.
Corn futures closed lower, with the September and December contracts down 7 cents to $4.42 and $4.65, respectively.
New Mexico: Roswell Livestock in Roswell sold 273 head on Monday. Compared to the last auction, steer calves 400-500 lbs. sold $12-20 higher. Heifer calves 400-500 lbs. were $15-25 higher and 550-600 lbs. traded $5 lower. A group of benchmark steers averaging 709 lbs. sold for $350-356, averaging $354.48.
Texas: Giddings Livestock in Giddings sold 1,229 head on Monday. Compared to the last auction, feeder steers and heifers were steady on the good cattle, with plainer cattle
steady to $3 lower. Benchmark steers averaging 714 lbs. sold for $340-365, averaging $345.69. — Charles Wallace, WLJ contributing editor
