Tuesday markets
Cattle futures showed continued gains for the second day.
Live cattle futures closed triple digits higher, with the December contract up $2.05 to $189.85 and the February contract up $2 to $189.02.
“It’s three weeks until spot December LC expires, and it found another gear today, pushing to its highest price since February 2024,” Cassie Fish, market analyst, wrote in The Beef. “December has already liquidated quickly, and its low open interest contributes to its explosiveness. December’s discount to cash fed cattle prices is the primary supportive factor.”
Cash trade was moderate, with 2,906 head sold for $191.
On the formula side, 22,100 head averaging 907 lbs. sold for an average of $309.44.
“Yesterday afternoon, two major packers purchased cattle in the south at $191, fully steady with last week, giving the market an optimism that cash firmness might prevail through the holiday period,” Fish wrote. “Many, if not most, cattle feeders will be pricing cattle higher this week in an attempt to squeeze another buck out of the packer.”
The national weekly direct beef type price distribution for the week of Dec. 2-9 was the following on a live basis:
• Negotiated purchases: $190.94.
• Formula net purchases: $191.81.
• Forward contract net purchases: $191.02.
• Negotiated grid net purchases: $193.46.
On a dressed basis:
• Negotiated purchases: $297.68.
• Formula net purchases: $301.82.
• Forward contract net purchases: $300.42.
• Negotiated grid net purchases: $300.24.
Today’s slaughter is estimated to be 120,000 head, 5,000 head lower than a week earlier.
Boxed beef prices were mixed on 129 loads, with the Choice cutout down $2.41 to $311.73 and the Select cutout up 31 cents to $279.65.
Feeder cattle
Feeder cattle also closed higher, with the January contract up $1.52 to $257.32 and the March contract up $2.25 to $257.45. The CME Feeder Cattle Index was down 63 cents to $261.62.
Corn futures closed higher due to USDA cutting ending stocks. The December contract was up 6 cents to $4.40 and the March contract was up 7 cents to $4.49.
Nebraska: Tri-State Livestock in McCook sold 1,308 head on Monday. Compared to the last auction, steers sold steady to $10 higher and heifers were $3-6 higher. Benchmark steers averaging 714 lbs. sold for $264-285, averaging $275.75.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 13,234 head on Tuesday. Compared to the last auction, feeder steers sold $3-9 lower and feeder heifers traded $2-7 lower. Steer and heifer calves sold $10-15 lower. Benchmark steers averaging 720 lbs. sold for $234-278, averaging $263.42.
South Dakota: Sioux Falls Regional Cattle in Worthing sold 6,018 head on Monday. Compared to the last auction, steer calves under 500 lbs. sold sharply higher, 500-550 lbs. were steady, and over 500 lbs. traded $10-15 higher. Heifer calves under 400 lbs. sharply higher, 400-550 lbs. sold steady to $5 higher, and over 550 lbs. traded $5-10 higher. Benchmark steers averaging 715 lbs. sold for $270-292.50, averaging $282.06. — Charles Wallace, WLJ contributing editor
