Tuesday markets
It’s a turnaround Tuesday as cattle futures closed higher, with January feeder cattle hitting near session-highs.
Live cattle futures closed higher, with the December contract up $2.27 to $231.17 and the February contract $1.50 higher to $230.47.
“Live cattle futures continue to hang out near the 100-day and 40-day moving averages, giving traders no indication of what’s in store post-holiday trading,” wrote Cassie Fish, market analyst, for The Beef.
Cash trade was non-existent, with 57 head sold—not enough for a market trend.
On the formula side, 30,200 head averaging 953 lbs. sold for an average of $363.61.
The national weekly direct beef type price distribution for the week of Dec. 22-29 was the following on a live basis:
• Negotiated purchases: $229.33.
• Formula net purchases: $232.24.
• Forward contract net purchases: $204.55.
• Negotiated grid net purchases: $232.20.
On a dressed basis:
• Negotiated purchases: $356.92.
• Formula net purchases: $364.10.
• Forward contract net purchases: $350.77.
• Negotiated grid net purchases: $346.80.
Today’s slaughter is estimated to be 122,000 head, 1,000 head below the prior week.
Boxed beef prices were lower on 209 loads, with the Choice cutout down $1.13 to $348.20 and the Select cutout $2.46 lower to $343.16.
“The past several days have seen wholesale boxed beef prices fall to new lows almost daily,” Fish wrote. “End cuts have been seasonally rallying but have not been a match for a disastrous seasonal break in rib primal prices. Today’s $481 price was the cheapest yet as the market barrels towards the summer low.”
Feeder cattle
Feeder cattle futures also closed higher, with the January contract up $2.55 to close at $349.55 and the March contract $2.90 higher to $344.57.
The CME Feeder Cattle Index was $7.96 lower to $348.04.
Corn futures closed lower, with the March contract down a penny to $4.40 and the May contract 2 cents lower to $4.48.
Due to the holidays, auction barns were closed. — Charles Wallace, WLJ contributing editor
