Tuesday markets
The cattle complex continued climbing, with feeder cattle futures over $2 higher.
“New longs are piling into cattle futures at a furious pace as the market trades at record high levels,” Cassie Fish, market analyst, wrote for The Beef. “There are lots of folks and funds involved in cattle futures that aren’t typical participants. Everyone is talking about the cattle bull market, from Wall Street to the ranch.”
Live cattle futures were higher, with the February contract up 37 cents to $195.57n and the April contract up 50 cents to $197.77.
Cash trade was minimal, with just 348 head sold for $197.50.
On the formula side, 29,100 head averaging 929 lbs. sold for an average of $311.73.
“It’s assumed that with packers still being short bought, prices will again be higher this week, but as always, time will tell,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments. “No bids or asking prices are noted yet, and trade will likely be delayed until Thursday or Friday again this week as feedlot managers are content to wait as long as they need until packers pay the prices they seek.”
The national weekly direct beef type price distribution for the week of Dec. 30 to Jan. 6 was the following on a live basis:
• Negotiated purchases: $198.97.
• Formula net purchases: $195.86.
• Forward contract net purchases: $188.28.
• Negotiated grid net purchases: $198.72.
On a dressed basis:
• Negotiated purchases: $314.57.
• Formula net purchases: $310.39.
• Forward contract net purchases: $301.03.
• Negotiated grid net purchases: $308.79.
Today’s slaughter is estimated to be 126,000 head, 24,000 head above a week earlier.
Boxed beef prices were mixed on 156 loads, with the Choice cutout down $1.31 to $325.79 and the Select cutout up $2.10 to $305.43.
Feeder cattle
Feeder cattle climbed over $2, with the January contract up $2.10 to $268.40 and the March contract up $2.37 to $267.92. The CME Feeder Cattle Index was up $2.87 to $268.63.
Corn futures were up a fraction, with the March and May contracts closing at $4.58 and $4.65, respectively.
Iowa: Russell Livestock in Russell sold 4,916 head on Monday. Due to a lack of a recent auction, an accurate comparison could not be provided. Benchmark steers averaging 788 lbs. sold for $250-272, averaging $264.16.
South Dakota: Sioux Falls Regional in Worthing sold 6,016 head on Monday. An accurate comparison was unavailable due to no recent auction, but higher undertones on all weights of steers and heifers were noted. Benchmark steers averaging 768 lbs. sold for $268-288, averaging $280.22. — Charles Wallace, WLJ contributing editor
