Tuesday markets
Cattle futures closed on both sides of steady following yesterday’s triple-digit losses.
Cassie Fish, market analyst, wrote in The Beef, contracts are moving in a tight range near the lower end of yesterday’s range, with most months trading below the 10-day moving average but above the 40-day moving average.
Live cattle closed mixed, with the February contract 5 cents higher to $245.02 and the April contract down 15 cents to $239.10.
Cash trade was light, with only 36 head sold.
On the formula side, 28,100 head averaging 956 lbs. sold for an average of $391.86.
The national weekly direct beef type price distribution for the week of Feb.16-23 was the following on a live basis:
• Negotiated purchases: $246.65.
• Formula net purchases: $248.06.
• Forward contract net purchases: $240.34.
• Negotiated grid net purchases: $254.08.
On a dressed basis:
• Negotiated purchases: $388.08.
• Formula net purchases: $389.41.
• Forward contract net purchases: $364.94.
• Negotiated grid net purchases: $379.77.
Today’s slaughter is estimated to be 111,000 head, 4,000 head below the previous week.
Boxed beef prices closed sharply higher on 102 loads, with the Choice cutout up $8.21 to $377.43 and the Select cutout $1.70 higher to $366.01.
“The wholesale beef market is up sharply today with what appears to be preemptive buying in case of a strike at the JBS Greeley, Colorado, fed cattle processing facility in the coming days,” Fish wrote.
Feeder cattle
Feeder cattle futures closed slightly higher, with the March contract up 80 cents to $365.10 and “More than anything, it seems the market is no longer up against immediate resistance pressure, which is why traders are comfortable to now allow the contracts to push slightly higher,” ShayLe Stewart, DTN livestock analyst, wrote in the midday comments.
The CME Feeder Cattle Index was down 39 cents to $375.41.
Corn futures closed mixed, with the March contract up a fraction to $4.27 and the May contract down a penny to $4.38.
New Mexico: Roswell Livestock in Roswell sold 1,131 head on Monday. Compared to the last auction, steer and heifer calves sold steady to lower, and feeder steers 700-900 lbs. were higher. There were no comparable sales or numbers of feeder heifers for an accurate comparison. Benchmark steers averaging 709 lbs. sold between $375-388, averaging $386.15.
South Dakota: Sioux Falls Regional in Worthing sold 5,689 head on Monday. Compared to the last auction, feeder steers and heifers sold $3-5 lower, with instances of $10 lower. Benchmark steers averaging 726 lbs. sold between $375-420, averaging $399.07. — Charles Wallace, WLJ contributing editor
