Tuesday markets
Cattle futures closed lower as traders look for fundamental direction.
Live cattle futures closed slightly lower, with the February contract down 20 cents to $239.10 and the April contract 77 cents lower to $237.42.
USDA reported that no cash trade occurred.
On the formula side, 26,800 head averaging 935 lbs. sold for an average of $380.96.
The national weekly direct beef type price distribution for the week of Feb. 2-9 was the following on a live basis:
• Negotiated purchases: $241.16.
• Formula net purchases: $240.76.
• Forward contract net purchases: $239.61.
• Negotiated grid net purchases: $245.93.
On a dressed basis:
• Negotiated purchases: $378.10.
• Formula net purchases: $377.76.
• Forward contract net purchases: $362.06.
• Negotiated grid net purchases: $370.97.
Today’s slaughter is estimated to be 116,000 head, 1,000 head above the previous week.
“The historically small slaughter of recent weeks is providing important support for boxed beef values during this slow seasonal timeframe and this week’s slaughter guesses are in the 530k to 535k head range compared to 536k last week and 562k a year ago,” Cassie Fish, market analyst, wrote in The Beef. “That would beat 2015 and 2016, which were both sub-530k for this week. There is talk that next week’s slaughter will be sub-530k head.”
Boxed beef prices were lower on 111 loads, with the Choice cutout down 21 cents to $367.55 and the Select cutout $2.45 lower to $362.90.
Feeder cattle
Feeder cattle futures were down triple digits, with the March contract $2.67 lower to $364.77 and the April contract down $1.92 to close at $361.27.
The CME Feeder Cattle Index was 83 cents lower to $373.83.
Corn futures closed relatively steady, with the March contract unchanged at $4.28 and the May contract up a fraction to $4.37.
New Mexico: Roswell Livestock in Roswell sold 1,001 head on Tuesday. Compared to the previous auction, weaned and vaccinated steer and heifer calves sold higher, with plainer calves being lower. Feeder steers sold $6-8 higher, and heifer yearlings were $9-18 higher. Benchmark steers averaging 791 lbs. sold for $373.
South Dakota: Sioux Falls Regional in Worthing sold 5,198 head on Monday. Compared to the previous auction, feeder steers under 700 lbs. sold $4-10 higher, and over 700 lbs. sold mostly $1 higher, except 850-900 lbs. traded $6 lower. Feeder heifers under 600 lbs. sold sharply lower, and over 600 lbs. sold unevenly steady, with the exception of 750-850 lbs. traded $7-10 lower. Benchmark steers averaging 729 lbs. sold between $392.50-426, averaging $407.82.
Texas: Giddings Livestock in Giddings sold 1,054 head on Monday. Compared to the previous auction, feeder steers under 400 lbs. sold $10-15 higher, and over 400 lbs. were $6-10 higher. Feeder heifers under 400 lbs. sold $7-10 higher, and over 400 lbs. were $4-7 higher. A group of steers averaging 664 lbs. sold between $375-420, averaging $397.51. — Charles Wallace, WLJ contributing editor
