Tuesday markets
Cattle futures closed higher, supported by a USDA report indicating corn prices are expected to remain affordable in 2026, stronger beef demand and bullish fundamentals.
Live cattle futures closed higher, with the February contract up $2 to $237.25 and the April contract $2.90 higher to close at $238.97.
USDA reported no cash trade sales.
On the formula side, 30,200 head averaging 963 lbs. sold for an average of $367.55.
“No substantial cash cattle trade has developed yet, and with the futures market trading slightly higher, there’s a good chance trade will again be delayed until late in the week,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments. “No asking prices have been established either.”
The national weekly direct beef type price distribution for the week of Jan. 5-12 was the following on a live basis:
• Negotiated purchases: $232.31.
• Formula net purchases: $234.12.
• Forward contract net purchases: $238.34.
• Negotiated grid net purchases: $239.41.
On a dressed basis:
• Negotiated purchases: $364.99.
• Formula net purchases: $365.29.
• Forward contract net purchases: $351.01.
• Negotiated grid net purchases: $360.87.
Today’s slaughter is estimated to be 118,000 head, the same as the prior week.
Boxed beef prices were mixed on 145 loads, with the Choice cutout up 88 cents to $357.99 and the Select cutout down 87 cents to $357.18.
Feeder cattle
Feeder cattle futures also climbed triple digits, with the January contract $4.22 higher to close at $366.27 and the March contract up $5.95 to $362.12.
“With corn prices anticipated to remain affordable through 2026, the feeder cattle complex is sporting a noteworthy $4 to $5 rally into Tuesday’s noon hour,” Stewart wrote. “Feed costs have remained in feeders’ favor over the last year as overall it’s been affordable, but with feeder cattle prices so high, buyers need that guarantee as their breakevens on these calves is risky and if feed prices were to grow more expensive, a lot of people could be in a tough position given how much they are simply paying for the calves and feeders they desire to feed out.”
The CME Feeder Cattle Index was 56 cents higher to $369.12.
Corn futures fell for the second day, with the March contract down a penny to $4.19 and the May contract 2 cents lower to $4.27.
Iowa: Russell Livestock in Russell sold 5,209 head on Monday. Compared to the previous auction, steers sold mostly $3-7 lower, except for 650-750 lbs., which sold $6-7 higher. Heifers sold mostly steady to $11 lower. Benchmark steers averaging 726 lbs. sold for $388-420 and averaged $405.07.
South Dakota: Sioux Falls Regional in Worthing sold 5,330 head on Monday. Compared to the previous auction, feeder steers under 650 lbs. sold mostly steady, with instances of $10-15 higher on 500-550 lbs. Steers 650-850 lbs. sold $5-13 higher and over 850 lbs. were $2-3 higher. Feeder heifers under 700 lbs. sold $10-15 higher, with instances of $30 higher under 500 lbs. and over 700 lbs. were steady to $5 higher. Benchmark steers averaging 776 lbs. sold for $364-399 and averaged $384.19. — Charles Wallace, WLJ contributing editor
