Tuesday markets
Cattle futures closed higher to start the holiday-shortened trading week on the strength of last week’s cash trade.
“Last week, Southern live cattle were marked at mostly $248, which is $4 higher than the previous week’s weighted average and Northern dressed cattle traded at mostly $382, which is also $4 higher than the previous week’s weighted average,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments.
Live cattle futures climbed triple digits, with the February contract $3.47 higher to $246.55 and the April contract up $2.17 to close at $242.80.
USDA reported that no cash trade occurred.
On the formula side, 22,600 head averaging 940 lbs. sold for an average of $386.45.
The national weekly direct beef type price distribution for the week of Feb. 9-16 was the following on a live basis:
• Negotiated purchases: $245.30.
• Formula net purchases: $244.49.
• Forward contract net purchases: $241.22.
• Negotiated grid net purchases: $250.62.
On a dressed basis:
• Negotiated purchases: $381.09.
• Formula net purchases: $384.53.
• Forward contract net purchases: $366.11.
• Negotiated grid net purchases: $375.75.
Today’s slaughter is estimated to be 115,000 head, 1,000 head below the previous week.
Boxed beef prices were lower on 116 loads, with the Choice cutout down $3.01 to $364.76 and the Select cutout $1.01 lower to $360.22.
“Packer margins were already historically red, and this action worsened margins further,” Cassie Fish, market analyst, wrote in The Beef. “Last week packer lost an estimated $220 to $250 per head, near the worst on record. The 2026 slaughter has been slashed as packers attempt to stabilize the wholesale beef market, especially during February a normally weak season.”
Feeder cattle
Feeder cattle futures also climbed triple digits, with the March contract $4.82 higher to $370.97 and the April contract up $4.37 to close at $367.82.
The CME Feeder Cattle Index was $1.17 higher to $375.08.
Corn futures closed lower, with the March contract down 5 cents to $4.26 and the May contract 6 cents lower to $4.35.
Iowa: Russell Livestock in Russell sold 5,855 head on Monday. Compared to the last auction, steers 550 lbs. and under sold sharply lower, while steers over 550 lbs. sold mostly steady to $10 higher. Heifers sold $12-21 higher, except 650-700 lbs. sold $2 lower. Benchmark steers averaging 727 lbs. sold between $387-424, averaging $404.60.
South Dakota: Sioux Falls Regional in Worthing sold 5,666 head on Monday. Compared to the last auction, feeder steers sold steady to $5 higher, with instances of $10 higher. Feeder heifers traded unevenly steady. Benchmark steers averaging 726 lbs. sold between $393-431, averaging $405.86. — Charles Wallace, WLJ contributing editor
