Tuesday markets
Live and feeder cattle futures saw buyers step in to stabilize prices, with the livestock complex closing slightly higher in a trade-shortened week following last Friday’s sharp decline.
Live cattle futures closed higher, with the February contract up 22 cents to $232.37 and the April contract 60 cents higher to $234.57.
“The spot April contract is hovering above the market’s 100-day moving average, which remains a very critical threshold to monitor, as a close below that price point could signal continued downward pressure,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments.
Cash trade was minimal, with 817 head sold for $232.
On the formula side, 26,900 head averaging 962 lbs. sold for an average of $369.50.
“Still nothing has developed in this week’s fed cash cattle market and won’t likely until Thursday or Friday,” Stewart said. “New showlists appear to be mixed, higher in Kansas, about steady in Nebraska/Colorado, but lower in Texas.”
The national weekly direct beef type price distribution for the week of Jan. 12-19 was the following on a live basis:
• Negotiated purchases: $232.50.
• Formula net purchases: $235.54.
• Forward contract net purchases: $235.93.
• Negotiated grid net purchases: $242.63.
On a dressed basis:
• Negotiated purchases: $364.56.
• Formula net purchases: $368.56.
• Forward contract net purchases: $372.14.
• Negotiated grid net purchases: $364.46.
Today’s slaughter is estimated to be 114,000 head, 7,000 head lower than the previous week.
Boxed beef prices were mixed on 118 loads, with the Choice cutout 43 cents higher to $364.76 and the Select cutout 49 cents lower to $359.84.
Feeder cattle
Feeder cattle futures also traded slightly higher, with the January contract up 70 cents to $362.62 and the March contract $1.22 higher to close at $357.67.
The CME Feeder Cattle index was $1.21 lower to $368.94.
Corn futures closed lower, with the March contract down a penny to $4.23 and the May contract down a fraction to $4.31.
Iowa: Russell Livestock in Russell sold 4,812 head on Monday. Compared to the last auction, steers under 650 lbs. sold $3-10 lower, and steers over 650 lbs. sold $9-21 lower. Heifers sold mostly steady to $12 lower. Benchmark steers averaging 775 lbs. sold between $351.50-387.50 and averaged $365.88.
New Mexico: Roswell Livestock in Roswell sold 1,476 head on Tuesday. Compared to the last auction, feeder steer calves sold mostly $5-10 lower, with steer yearlings being steady to $6 lower. Benchmark steers averaging 776 lbs. sold for $337.50-351 and averaged $344.96.
Texas: Giddings Livestock in Giddings sold 1,401 head on Monday. Compared to the previous auction, feeder steers under 500 lbs. sold $4-8 lower, while the feeder steers over 500 lbs. were $4-6 higher. Feeder heifers under 500 lbs. sold $2-6 lower, while the feeder heifers over 500 lbs. were $2-6 higher. Benchmark steers averaging 716 lbs. sold between $350-410 and averaged $365.25.
South Dakota: Sioux Falls Regional in Worthing sold 6,156 head on Monday. Compared to the previous auction, feeder steers and heifers sold unevenly steady, except for 700-800 lbs. steers, which were $10-15 lower. Benchmark steers averaging 772 lbs. sold for $358-385 and averaged $371.49. — Charles Wallace, WLJ contributing editor
