Tuesday markets
Cattle futures closed lower on short-term profit taking from yesterday’s highs.
Live cattle futures closed lower, with the December contract down $1.90 to $228.82 and the February contract $1.42 lower to close at $230.
“To no one’s real surprise, following Monday’s stronger trade, the live cattle complex is back to trading lower as the market’s resistance at its 100-day moving average remains a difficult barrier to conquer,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments.
Cash trade was moderate, with 6,351 head sold. Live steers sold for $228-229, and dressed steers sold for $356.
On the formula side, 30,600 head averaging 940 lbs. sold for an average of $366.01.
The national weekly direct beef type price distribution for the week of Dec. 15-22 was the following on a live basis:
• Negotiated purchases: $228.15.
• Formula net purchases: $229.99.
• Forward contract net purchases: $213.28.
• Negotiated grid net purchases: $231.37.
On a dressed basis:
• Negotiated purchases: $356.83.
• Formula net purchases: $359.80.
• Forward contract net purchases: $337.
• Negotiated grid net purchases: $348.57.
Today’s slaughter is estimated to be 123,000 head, 2,000 head above the prior week.
Boxed beef prices were lower on 138 loads, with the Choice cutout $7.10 lower to $355.77 and the Select cutout down $1.10 to $349.59.
Feeder cattle
Feeder cattle futures also closed down, with the January contract $1.87 lower to close at $344.62 and the March contract down $1.50 to $339.
The CME Feeder Cattle Index was up $1.17 to $353.08.
Corn futures closed slightly higher, with the March contract up a fraction to $4.47 and the May contract up a penny to $4.55.
There are no auctions to report due to the Christmas holiday. — Charles Wallace, WLJ contributing editor
