Tuesday markets
The cattle complex closed higher as futures are playing catch-up with soaring cash trade.
Live cattle futures closed triple digits higher, with the February contract up $2.87 to $208.55 and the April contract up $3.45 to $207.27.
“Even though the contracts continue to press into new, life of the contract high price points, traders are actively advancing the market without question as they continue to see the validity and merit of the market’s long-term bullish trajectory,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments.
Cash trade was light, with 132 head sold—not enough for a market trend.
On the formula side, 29,700 head averaging 927 lbs. sold for an average of $324.93.
“Asking prices are noted at $208 to $210 in the South but are still not established in the North,” Stewart wrote. “It’s assumed that cattle will trade steady/somewhat higher again this week, but trade will likely be delayed until Wednesday or later.”
The national weekly direct beef type price distribution for the week of Jan. 20-27 was the following on a live basis:
• Negotiated purchases: $208.96.
• Formula net purchases: $203.83.
• Forward contract net purchases: $191.58.
• Negotiated grid net purchases: $205.42.
On a dressed basis:
• Negotiated purchases: $329.94.
• Formula net purchases: $323.82.
• Forward contract net purchases: $303.48.
• Negotiated grid net purchases: $321.95.
Today’s slaughter is estimated to be 124,000 head, the same as a week earlier.
Boxed beef prices were higher on 126 loads, with the Choice cutout up $2.37 to $332.45 and the Select cutout up $1.41 to $321.96.
Feeder cattle
Feeder cattle also closed higher, with the January contract up $2.10 to $281.82 and the March contract up $3 to $278.25.
The CME Feeder Cattle Index was down 35 cents to $277.93.
Corn futures were higher, with the March and May contracts up 3 cents to $4.85 and $4.96, respectively.
Iowa: Russell Livestock in Russell sold 3,746 head on Monday. Compared to the previous auction, steers sold mostly $2-9 higher. Heifers mainly sold $2-12 higher. Benchmark steers averaging 773 lbs. sold for $272.50-297, averaging $288.09.
Nebraska: Tri-State Livestock in McCook sold 2,654 head on Monday. Compared to the last auction, steers sold $13-18 higher, except 550 lbs. traded $7 lower. Heifers sold steady to $19 higher. Benchmark steers averaging 764 lbs. sold for $285-298, averaging $293.05.
South Dakota: Sioux Falls Regional in Worthing sold 6,547 head on Monday. Compared to the last auction, feeder steers under 650 lbs. and 850-900 lbs. sold steady to $5 higher, and other weights traded $5-10 higher, with instances of $15-18 higher. Feeder heifers sold $5-10 higher. Benchmark steers averaging 722 lbs. sold for $285-312, averaging $302.69. — Charles Wallace, WLJ contributing editor
