Tuesday markets
Cattle futures continue to climb today, with strong gains pushing several nearby contracts to new contract highs.
Live cattle futures continued their record-breaking climb, with the August contract gaining $1.85 to $229.72 and the October contract up $1.67, closing at $226.45.
Cash trade was moderate, with 1,489 head sold for $240.
On the formula side, 33,000 head averaging 916 lbs. sold for an average of $376.28.
“No business has developed yet in the fed cash cattle market, and it isn’t expected to any time soon, as feedlot managers and packers are likely to go round again this week as both parties want starkly different outcomes for the market,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments. “Asking prices are noted in the South at $235 plus but are still not established yet in the North.”
The national weekly direct beef type price distribution for the week of July 21-28 was the following on a live basis:
• Negotiated purchases: $239.27.
• Formula net purchases: $235.88.
• Forward contract net purchases: $208.95.
• Negotiated grid net purchases: $237.05.
On a dressed basis:
• Negotiated purchases: $379.57.
• Formula net purchases: $372.69.
• Forward contract net purchases: $317.75.
• Negotiated grid net purchases: $376.14.
Today’s slaughter is estimated to be 113,000 head, 1,000 head above the previous week.
Boxed beef prices were lower on 116 loads, with the Choice cutout down $3.54 to $364.19 and the Select cutout $4.37 lower to $342.48.
Feeder cattle
Feeder cattle futures saw gains of over $2, with the August contract up $2.67 to $336.20 and the September contract climbing $2.52 to $337.07.
The CME Feeder Cattle Index was up $1.10 to close at $329.93.
Corn futures closed lower, with the September contract down 4 cents to $3.89 and the December contract 3 cents lower to $4.11.
Texas: Giddings Livestock in Giddings sold 1,023 head on Monday. Compared to the last auction, feeder steers and heifers were both up $10-12 across all weight classes. Benchmark steers averaging 716 lbs. sold between $318-360, averaging $332.52. — Charles Wallace, WLJ contributing editor
