Tuesday markets
The livestock complex closed higher as traders were back into the market. Cash trade has yet to develop.
Live cattle closed higher, with the December contract up 50 cents to $154.90 and the February contract up 25 cents to $156.35.
“The live cattle complex gaped open to start the day off as the market was finally able to trade the amazing close that Choice boxed beef prices made Monday afternoon,” ShayLe Stewart, DTN livestock analyst, wrote in the midday comments. “If the complex continues to see that kind of interest in boxed beef prices, then the market stands an excellent chance at keeping cash cattle prices at least steady, if not advancing the market by a $1 or $2.”
Cash trade again was nonexistent, with 511 head sold—not enough for a trend.
Some early asking prices are around $157-158 in the South, but they were yet to be established in the North. Trade volume will likely be delayed until Wednesday or Thursday.
“With packers buying for the holiday-shortened weeks around Christmas, it’s not likely that they’ll procure an exuberant volume of cattle, but with front-end supplies as thin as they are, they’ll have to participate in the market to some degree,” Stewart wrote.
On the formula side, 29,200 head averaging 875 lbs. sold for an average of $252.36.
The national weekly direct beef type price distribution for the week of Dec. 5-12 was the following on a live basis:
• Negotiated purchases: $155.75.
• Formula net purchases: $158.34.
• Forward contract net purchases: $156.14.
• Negotiated grid net purchases: $157.29.
On a dressed basis:
• Negotiated purchases: $246.65.
• Formula net purchases: $252.27.
• Forward contract net purchases: $235.78.
• Negotiated grid net purchases: $248.05.
Slaughter for today is expected to be 121,000 head, 7,000 head below last week.
Boxed beef closed lower on 129 loads, with the Choice cutout down $2.07 to $254.95 and the Select cutout down 22 cents to $225.46.
Feeder cattle
Feeder cattle closed higher, with the January contract up 57 cents to $184.22 and the March contract up 50 cents to $185.72. The CME Feeder Cattle Index was up 3 cents to $179.97.
Corn closed mixed, with the December contract up 2 cents to $6.43 and the March contract down a fraction of a cent to $6.53.
Nebraska: Tri-State Livestock Auction in McCook sold 2,370 head Monday. Compared to the previous auction, steers were $7-11 higher and heifers were steady to $10 higher. Benchmark steers averaging 727 lbs. sold between $185-196 and averaged $189.96.
New Mexico: Roswell Livestock in Roswell sold 1,623 head Monday. Compared to the last auction, steer calves under 400 lbs. were not well tested, 400-450 lbs. were $20 lower, and steer calves over 450 lbs. sold $5-10 higher. Heifer calves were mostly steady to $4 higher, with 300-350 lbs. sold $9 higher. Feeder steers traded $8-12 higher, and feeder heifers were $7 higher. A group of steers averaging 730 lbs. sold between $162-167.50 and averaged $165.73.
South Dakota:Sioux Falls Regional Cattle Auction in Worthing sold 3,571 head Monday. Compared to the previous auction, feeder steers sold steady to $5 lower, with instances of $12 lower, except 550-600 lbs. were $4-6 higher. Feeder heifers sold $2-6 lower, except 550-650 lbs. were steady to $3 higher. Benchmark steers averaging 790 lbs. sold between $180-186, averaging $182.44. —Charles Wallace, WLJ editor
