Tuesday markets
Cattle futures were mostly higher as the market sat tight to see what developed.
“It’s been a quiet, noneventful day for the livestock complex as traders continue to determine which direction best suits the futures complex without much having developed yet fundamentally,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments.
Live cattle futures were mixed, with the December contract up 22 cents to $192.25 and the February contract down 22 cents to $189.75.
Cash trade was light, with just 761 head sold—not enough for a market trend.
On the formula side, 26,900 head averaging 919 lbs. sold for an average of $308.86.
“In the meantime, predictions for this week’s negotiated fed cattle trade are for a steady go, with some bulls and cattle feeders expecting more upside this week,” Cassie Fish, market analyst, wrote in The Beef. “Packers are buying for what is expected to be the smallest fed cattle slaughter of the year. This year’s cash rally has been the opposite of the 2023 sharp sell-off to $169, which occurred the same week last year.”
The national weekly direct beef type price distribution for the week of Dec. 9-16 was the following on a live basis:
• Negotiated purchases: $194.02.
• Formula net purchases: $193.15.
• Forward contract net purchases: $193.01.
• Negotiated grid net purchases: $197.90.
On a dressed basis:
• Negotiated purchases: $304.61.
• Formula net purchases: $305.16.
• Forward contract net purchases: $300.34.
• Negotiated grid net purchases: $299.87.
Today’s slaughter is estimated to be 123,000 head, 3,000 head higher than a week earlier.
Boxed beef prices were lower on 112 loads, with the Choice cutout down $1.74 to $315.63 and the Select cutout down $1.07 to $288.50.
Feeder cattle
Feeder cattle futures were higher, with the January contract up $192 to $257.47 and the March contract up $1.90 to $258.27. The CME Feeder Cattle Index was up 81 cents to $262.54.
Corn futures were lower, with the March and May contracts down a penny to $4.43 and $4.50, respectively.
Nebraska: Tri-State Livestock in McCook sold 3,200 head on Monday. Compared to the previous auction, steers sold $10-15 higher, except for 700-750 lbs. were $7 lower. Heifers sold $5-10 higher. Benchmark steers averaging 777 lbs. sold for $271-283, averaging $276.68.
South Dakota: Sioux Falls Regional in Worthing sold 5,565 head on Monday. Compared to the previous auction, steer calves under 700 lbs. sold $6-10 higher, 500-550 lbs. were $15-20 higher and over 700 lbs. were steady to $3 higher. Heifer calves sold steady to $5 higher, with instances of $10 higher on 450-500 lbs. Yearling feeder steers sold $5-10 higher, while yearling heifers were not well compared. Benchmark steers averaging 713 lbs. sold for $270-289, averaging $284.78. — Charles Wallace, WLJ contributing editor
