Tuesday markets
Cattle futures extended their rally today, with feeder contracts setting new highs and 2025 live cattle futures nearing resistance levels last seen before June’s sharp downturn.
Live cattle futures closed higher, with the August contract up $4.07 to $219.97 and the October contract up $3.87 to $216.82.
Cash trade was light, with 607 head sold for $235. On the formula side, 30,800 head averaging 909 lbs. sold for an average of $364.01.
“It’s yet to be seen what fed cash cattle prices are going to do this week,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments. “Asking prices are noted at $226 plus in the South, and it has been noted that cattle in western Iowa are priced at $240, but no trade has developed just yet. And given that packers have supplies built up around them, it’s likely that prices will be steady at best.”
The national weekly direct beef type price distribution for the week of June 30 to July 7 was the following on a live basis:
• Negotiated purchases: $229.74.
• Formula net purchases: $231.74.
• Forward contract net purchases: $204.13.
• Negotiated grid net purchases: $236.10.
On a dressed basis:
• Negotiated purchases: $369.
• Formula net purchases: $368.79.
• Forward contract net purchases: $324.50.
• Negotiated grid net purchases: $376.72.
Today’s slaughter is estimated to be 118,000 head, 2,000 head below the previous week.
Boxed beef prices were higher on 99 loads, with the Choice cutout up $2.06 to $393.04 and the Select cutout up 93 cents to $378.46.
Feeder cattle
Feeder cattle futures closed over $5 higher, with the August contract up $5.40 to $319.12 and the September contract up $5.65 to $319.17.
The CME Feeder Cattle Index was up 21 cents to $312.04.
“Up, up and away!” Stewart wrote. “The feeder cattle complex has successfully reached new contract highs as the market is being flooded with support. Buyer demand remains ample in the countryside and thanks to the added technical support of traders willing to invest in the futures complex—dare I say it’s almost been easy for the market to trade higher this morning?”
Corn futures closed lower, with the July contract down 7 cents to $4.11 and the September contract down 5 cents to $3.98.
The majority of auction markets are expected to resume sales next week.
Oklahoma: Tulsa Livestock in Tulsa sold 1,259 head on Monday. Compared to the last auction, steer calves sold $10-15 higher, with instances of up to $20 higher. Heifer calves sold $5-10 higher, with instances of up to $15 higher. Front-end bulls traded at prices comparable to last week’s steer prices, reflecting continued strength in the market. Benchmark steers averaging 702 lbs. sold for $335-348.50, averaging $345.60. — Charles Wallace, WLJ contributing editor
