Tuesday markets
It was a volatile trading day for live cattle futures. Cassie Fish, market analyst for The Beef, wrote that packers were willing to fork over some money for cattle in Iowa.
“A major packer surfaced in western Iowa and eastern Nebraska region this morning, rumored to call at $205 live, the top of last week’s cash market,” Fish wrote. “Indeed, just over 500 head traded as high as $205.50. This action on a Tuesday is being viewed by some as supportive this week’s cash market, though given that some packers do a have stronger inventory position than in many weeks, it will be interesting to see how this plays out.”
Live cattle futures closed mixed, with the February contract unchanged at $197.40 and the April contract down a nickel to $198.15.
Cash trade was light, with 382 head sold for $205.
On the formula side, 30,500 head averaging 936 lbs. sold for an average of $319.03.
The national weekly direct beef type price distribution for the week of Jan. 6-13 was the following on a live basis:
• Negotiated purchases: $202.41.
• Formula net purchases: $198.92.
• Forward contract net purchases: $193.50.
• Negotiated grid net purchases: $201.48.
On a dressed basis:
• Negotiated purchases: $320.28.
• Formula net purchases: $314.38.
• Forward contract net purchases: $303.04.
• Negotiated grid net purchases: $312.76.
Today’s slaughter is estimated to be 125,000 head, 1,000 head below a week earlier.
Boxed beef prices were mixed on 155 loads, with the Choice cutout down 37 cents to $332.98 and the Select cutout up $1.14 to $318.71.
Feeder cattle
Feeder cattle futures were higher, with the January contract up $2.25 to $274.10 and the March contract up 30 cents to $268.20.
The CME Feeder Cattle Index was up $2.30 to $277.30.
“Thankfully, demand continues to shine through as sales in the countryside remain utterly incredible, and with the board’s rally again today, eagerness and momentum from the contracts could help bolster stronger trade throughout the week,” ShayLe Stewart, DTN livestock analyst, wrote in the midday comments.
Corn futures were lower, with the March and May contracts down 2 cents to $4.74 and $4.84, respectively.
Iowa: Russell Livestock in Russell sold 4,912 head on Monday. Compared to the last auction, steers under 700 lbs. sold steady to $16 higher, while steers heavier than 700 lbs. sold sharply higher. Heifers sold mostly $7-21 higher. Benchmark steers averaging 713 lbs. sold for $276-309, averaging $301.56.
South Dakota: Sioux Falls Regional Cattle in Worthing sold 7,167 head on Monday. Compared to the last auction, feeder steers under 800 lbs. sold $10-15 higher, and over 800 lbs. traded $2-6 higher. Feeder heifers sold $10-15 higher, with instances of $20 higher on 550-700 lbs. Benchmark steers averaging 721 lbs. sold for $290-313, averaging $301.10. — Charles Wallace, WLJ contributing editor
