Tuesday markets
Feeders were the leaders helping to move cattle futures higher.
Live cattle futures closed higher, with the February contract up 60 cents to $199.50 and the April contract up 62 cents to $195.72.
“The spot April contract is still tanking below its 40-day moving average, but thankfully, every day that the market continues to trade higher, it’s not only getting closer to that pivotal threshold in which bulls hope that the market reconquers quickly,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments.
Cash trade was minimal, with only 251 head sold.
On the formula side, 27,000 head averaging 905 lbs. sold for an average of $326.19.
The national weekly direct beef type price distribution for the week of Feb. 17-24 was the following on a live basis:
• Negotiated purchases: $199.72.
• Formula net purchases: $208.20.
• Forward contract net purchases: $195.12.
• Negotiated grid net purchases: $210.65.
On a dressed basis:
• Negotiated purchases: $315.13.
• Formula net purchases: $328.26.
• Forward contract net purchases: $304.29.
• Negotiated grid net purchases: $332.86.
Today’s slaughter is estimated to be 122,000 head, 4,000 head above a week earlier.
Boxed beef prices were slightly higher on 144 loads, with the Choice cutout up 59 cents to $314.32 and the Select cutout up 16 cents to $304.13.
Feeder cattle
Feeder cattle futures closed triple digits higher, with the March contract up $1.92 to $274.22 and the April contract up $1.77 to $273.80.
“Friday’s supportive Cattle on Feed report has undoubtedly helped the market regain the support of traders, but even though the complex was challenged this past month, the underpinning of the marketplace remained bullish at heart,” Stewart wrote.
Corn futures were lower, with the March and May contracts down 2 cents to $4.79 and $4.94, respectively.
Iowa: Russell Livestock in Russell sold 3,062 head on Monday. Compared to the last auction, steers 500-550 lbs. sold $7 lower and 700-750 lbs. steers sold $3 lower. Other steers sold mostly $5-20 higher. Heifers 550-550 lbs. sold $7 lower and 700-750 lbs. sold $4 lower, while others sold mostly $3-25 higher. Benchmark steers averaging 726 lbs. sold for $291-304.75, averaging $297.60.
New Mexico: Roswell Livestock in Roswell sold 1,353 head on Monday. Compared to the previous auction, steer calves 300-350 lbs. sold $10 lower, 350-500 lbs. sold $2-10 higher with instances of $15 higher, and 500-600 lbs. were $1-8 higher. Steer yearlings 600-750 lbs. sold $7-14 higher and 850-900 lbs. were $6 higher. Heifer calves 300-500 lbs. sold $8-15 lower, 500-600 lbs. were $11-16 higher and 600-650 lbs. sold $6 higher. Benchmark steers averaging 700 lbs. sold for $277-285, averaging $284.58.
South Dakota: Sioux Falls Regional Cattle in Worthing sold 5,860 head on Monday. Compared to the last auction, feeder steers and heifers sold steady to $5 higher. Benchmark steers averaging 725 lbs. sold for $282-306, averaging $299.66. — Charles Wallace, WLJ contributing editor
