Tuesday markets
Cattle futures closed on both sides of steady, with deferred contracts closing lower.
Live cattle futures were mixed, with the February contract up 30 cents to $197.05 and the April contract down 17 cents to $197.32.
“The live cattle complex is trading mixed, but with a mostly lower tone as the market holds its breath waiting to see what develops this week for fundamental support,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments.
Cash trade was light, with 2,305 head sold. Live steers sold for $201, and dressed steers sold for $320.
On the formula side, 26,800 head averaging 917 lbs. sold for an average of $325.36.
“Expectations for this week’s cash fed cattle trade are generally steady,” Cassie Fish, market analyst, wrote in The Beef. “About 1.5k head traded yesterday, mostly steady with last week. Packers did get a decent number of negotiated cattle bought last week, 81k head, 26k of which were purchased with time. Packers did pay up $1.09/cwt from the prior week on average to accomplish that feat, last week’s 5-area average $203.67, another all-time high.”
The national weekly direct beef type price distribution for the week of Jan. 13-20 was the following on a live basis:
• Negotiated purchases: $203.64.
• Formula net purchases: $202.76.
• Forward contract net purchases: $188.38.
• Negotiated grid net purchases: $203.45.
On a dressed basis:
• Negotiated purchases: $321.97.
• Formula net purchases: $320.63.
• Forward contract net purchases: $303.05.
• Negotiated grid net purchases: $317.52.
Today’s slaughter is estimated to be 124,000 head, 1,000 head below a week earlier.
Boxed beef prices were mixed on 152 loads, with the Choice cutout down $1.11 to $332.05 and the Select cutout up 11 cents to $319.55.
Feeder cattle
Feeder cattle futures were also mixed, with the January contract up 90 cents to $274.40 and the March contract down 80 cents to $267.25.
The CME Feeder Cattle Index was down $1.25 to $277.06.
“Given that the market’s resistance continues to loom around $270, it’s not likely that the complex will trade substantially higher—unless fundamental support in the form of stronger feed cattle prices prevails and the live cattle contracts grow more ambitious to trade higher themselves,” Stewart wrote.
Corn futures closed higher, with the March contract up 5 cents to $4.90 and the May contract up 6 cents to $4.99.
Iowa: Russell Livestock in Russell sold 3,992 head on Monday. Compared to the previous auction, steers over 550 lbs. sold mostly $3-20 lower, while steers less than 550 lbs. sold with a higher undertone. Heifers sold mostly $8-24 lower. Benchmark steers averaging 718 lbs. sold between $279-305.25, averaging $294.69.
Nebraska: Tri-State Livestock in McCook sold 1,930 head on Monday. Compared to the last auction, steers traded steady to $8 lower, except 550 lbs. sold $15 higher. Heifers sold steady to $10 lower. Benchmark steers averaging 773 lbs. sold for $268.50-284, averaging $279.53.
South Dakota: Sioux Falls Regional in Worthing sold 6,306 head on Monday. Compared to the last auction, feeder steers and heifers traded unevenly steady. Benchmark steers averaging 776 lbs. sold for $270-291, averaging $283.30. — Charles Wallace, WLJ contributing editor
