Tuesday markets
Traders seemed unsure as to the direction the markets might take, with feeder cattle futures unable to prop live cattle futures which closed slightly lower.
“It was an ugly performance Friday and today, CME cattle futures have taken up where they left off and made new lows for 2025,” Cassie Fish, market analyst, wrote in The Beef. “The market has staged a massive retracement with most active April having traded today within 150 points of a 50% retracement of the rally that began in September and ended in late January 2025. It is unusual, if not unprecedented, for cattle bull markets to decline at this magnitude in Q1. But bullishness remains widespread despite the hammering that CME live cattle futures have taken.”
Live cattle futures closed lower on nearby contracts, with the February contract down 30 cents to $197.45 and the April contract down 22 cents to $194.02.
Cash trade was light, with 740 head sold—not enough for a market trend.
On the formula side, 25,100 head averaging 929 lbs. sold for an average of $331.11.
The national weekly direct beef type price distribution for the week of Feb. 10-17 was the following on a live basis:
• Negotiated purchases: $203.25.
• Formula net purchases: $210.41.
• Forward contract net purchases: $195.96.
• Negotiated grid net purchases: $212.11.
On a dressed basis:
• Negotiated purchases: $320.43.
• Formula net purchases: $331.80.
• Forward contract net purchases: $303.33.
• Negotiated grid net purchases: $331.22.
Today’s slaughter is estimated to be 118,000 head, 4,000 head lower than a week earlier.
Boxed beef prices were mixed on 140 loads, with the Choice cutout up 7 cents to $315.77 and the Select cutout down $2.52 to $303.71.
Feeder cattle
Feeder cattle futures were higher, with the March contract up $3.37 to $269.72 and the April contract up $2.67 to $269.10.
The CME Feeder Cattle Index was up 7 cents to $276.30.
“It’s somewhat strange to see the feeder cattle complex trading boldly higher, all while the nearby corn contracts are rallying anywhere from $0.05 to $0.07 higher and the live cattle market isn’t lending any support,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments. “Nonetheless, the nearby contracts are up $1 to $3 higher and it’s liberating to see the spot March contract back above its 40-day moving average. There’s the old saying that ‘feeders are the leaders,’ and let’s hope that we see that come true this week as the live cattle market desperately needs some support.”
Corn futures were higher, with the March contract up 5 cents to $5.02 and the May contract up 7 cents to $5.15.
Iowa: Russell Livestock in Russell sold 3,884 head on Monday. Compared to the previous auction, steers mostly sold steady to $17 lower. Heifers sold unevenly, 550-700 lbs. were $7-16 lower, while others were $13-15 higher. Benchmark steers averaging 724 lbs. sold between $285-309, averaging $300.54.
Nebraska: Tri-State Livestock in McCook sold 954 on Monday. There were not enough sales for an accurate comparison. A group of steers averaging 734 lbs. sold between $274-282, averaging $280.41. — Charles Wallace, WLJ contributing editor
