Tuesday markets
Live cattle futures are pausing after recent gains, while feeder cattle posted triple-digit rallies.
“After a highly tumultuous last two months in the cattle and beef industry, the end of the year holiday mode has begun,” wrote Cassie Fish, market analyst, in The Beef. “Futures action is becoming choppier and choppier–lacking follow through; the market is still technically quite overbought from the steep rally of the last couple of weeks. Most contract months have poked their heads above their respective November highs, while the dramatic all-time highs established in October seem miles away.”
Live cattle futures closed slightly higher, with the December contract up 32 cents to $231.15 and the February contract 15 cents higher to close at $230.70.
Cash trade was minimal, with only 88 head sold.
On the formula side, 26,600 head averaging 941 lbs. sold for an average of $358.14.
The national weekly direct beef type price distribution for the week of Dec. 8-15 was the following on a live basis:
• Negotiated purchases: $228.31.
• Formula net purchases: $225.54.
• Forward contract net purchases: $209.49.
• Negotiated grid net purchases: $230.92.
On a dressed basis:
• Negotiated purchases: $354.01.
• Formula net purchases: $350.51.
• Forward contract net purchases: $340.75.
• Negotiated grid net purchases: $353.73.
Today’s slaughter is estimated to be 121,000 head, 2,000 head lower than a week earlier.
Boxed beef prices were mixed on 119 loads, with the Choice cutout 88 lower to $358.88 and the Select cutout $1.80 higher to $349.10.
Feeder cattle
Feeder cattle climbed triple digits, with the January contract $3.40 higher to $343.32 and the March contract up $2.75 to close at $337.60.
“The feeder cattle complex is off to a bold start this morning as the market is currently trading above its 100-day moving average in most of the nearby contracts,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments. “Fueled by strong buyer demand in the countryside and by the continued support of traders, the market is tiptoeing into territory that hasn’t been traded at since late October.”
The CME Feeder Cattle Index was 60 cents higher to $347.37.
Corn futures were lower, with the March and May contracts down 3 cents to $4.36 and $4.44, respectively.
South Dakota: Sioux Falls Regional in Worthing sold 6,062 head on Monday. Compared to the previous auction, steer calves sold $10-20 higher, with instances of up to $30 higher on weights under 550 lbs. Heifer calves sold $10-20 higher. Yearling steers sold steady to $3 higher, and yearling heifers were unevenly steady. Benchmark steers averaging 732 lbs. sold for $365-418 and averaged $387.09.
Texas: Giddings Livestock in Giddings sold 1,618 head on Sunday. Compared to the last auction, feeder steers and heifers weighing under 500 lbs. sold $15-40 higher. Feeder steers over 500 lbs. sold $8-15 higher, and feeder heifers over 500 lbs. were $6-12 higher. Benchmark steers averaging 711 lbs. sold for $332-370 and averaged $343.40. — Charles Wallace, WLJ contributing editor
