Tuesday markets
Live and feeder cattle futures closed mixed today.
Live cattle futures closed slightly lower, with the February contract down 42 cents to $235.60 and the April contract 60 cents lower to close at $237.40.
“For all practical purposes, CME live cattle futures have been trekking sideways all of January,” wrote Cassie Fish, market analyst for The Beef. “After rallying on January 2, the market has established yet another trading range—waiting, it seems, for further direction.”
Cash trade was nonexistent, with only 73 head sold—notenough for a market trend.
On the formula side, 19,800 head averaging 945 lbs. sold for an average of $369.76.
“Packer cattle inventory position appears to have improved to its best in a month after last week’s decent volume cash buy and 535k slaughter,” Fish wrote. “After last week’s higher negotiated fed cattle prices, higher money may be tougher to come by than some think.”
The national weekly direct beef type price distribution for the week of Jan. 19-26 was the following on a live basis:
• Negotiated purchases: $234.60.
• Formula net purchases: $236.
• Forward contract net purchases: $235.89.
• Negotiated grid net purchases: $241.05.
On a dressed basis:
• Negotiated purchases: $368.71.
• Formula net purchases: $370.64.
• Forward contract net purchases: $370.92.
• Negotiated grid net purchases: $367.27.
Today’s slaughter is estimated to be 112,000 head, 2,000 head lower than the previous week.
Boxed beef prices were lower on 192 loads, with the Choice cutout down 79 cents to $368.11 and the Select cutout $1.93 lower to $365.19.
Feeder cattle
Feeder cattle closed mixed, with the January contract 15 cents higher to $366.85 and the March contract 60 cents lower to $362.
The CME Feeder Cattle Index was $1.13 higher to $364.73.
Corn futures closed slightly lower, with the March and May contracts down a penny to $4.26 and $4.34, respectively.
South Dakota: Sioux Falls Regional in Worthing sold 4,923 head on Monday. Compared to the previous auction, feeder steers sold steady to $5 higher, except 550-600 lbs. were $10-25 higher. Feeder heifers sold mostly steady, except 500-550 lbs. and 950-1,000 lbs. were $5-8 higher. Benchmark steers averaging 778 lbs. sold for $371-389, averaging $379.50. — Charles Wallace, WLJ contributing editor
