Tuesday markets
It’s a turnaround Tuesday as cattle futures surged higher, setting up a test of whether cash or futures will lead the market this week.
Live cattle futures closed triple digits higher, with the December contract up $4.27 to close at $218.47 and the February contract $4.87 higher to $220.80.
“Show lists were mixed with Texas and Nebraska down and Kansas higher,” the Cattle Report wrote. “This week will test the proposition of leadership between cash and futures, with futures starting the week lower, but reversing course today and jumping higher on the opening.”
Cash trade was light, with 347 head sold—not enough for a market trend.
On the formula side, 21,900 head averaging 940 lbs. sold for an average of $352.72.
The national weekly direct beef type price distribution for the week of Nov. 24 to Dec. 1 was the following on a live basis:
• Negotiated purchases: $211.33.
• Formula net purchases: $227.75.
• Forward contract net purchases: $199.16.
• Negotiated grid net purchases: $236.10.
On a dressed basis:
• Negotiated purchases: $329.53.
• Formula net purchases: $358.60.
• Forward contract net purchases: $327.88.
• Negotiated grid net purchases: $364.77.
Today’s slaughter is estimated to be 122,000 head, 3,000 head below a week earlier.
Boxed beef prices closed lower on 115 loads, with the Choice cutout down $4.17 to $364.72 and the Select cutout $7.10 lower to close at $350.78.
Feeder cattle
Feeder cattle futures closed over $8, with the January contract $8.80 higher to close at $329.87 and the March contract up $8.40 to $323.92.
The CME Feeder Cattle Index was 94 cents higher to $319.70.
Corn futures closed higher, with the December and March contracts gaining 5 cents to $4.38 and $4.50, respectively.
New Mexico: Roswell Livestock in Roswell sold 257 head on Monday. Compared to the last auction, steer calves 500-550 lbs. sold $17-22 higher and heifer calves 450-500 lbs. were $20 higher, with 500-600 lbs. selling $30-52 higher. A group of steers averaging 758 lbs. sold for $271-285, averaging $282.23.
Texas: Giddings Livestock in Giddings sold 560 head on Monday. Compared to the last auction, lightweight steers under 400 lbs. sold $15-30 higher, while steers over 400 lbs. were $10-15 higher. Feeder heifers under 400 lbs. sold $10-15 higher, while heifers over 400 lbs. were $7-10 higher. A group of steers averaging 768 lbs. sold for $315. — Charles Wallace, WLJ contributing editor
