Tuesday markets
Cattle futures traded choppily on Tuesday as traders remained in a cautious wait-and-see mode, awaiting support from the cash market and fundamentals.
“There is no doubt many in the cattle universe are speculating that the market has rallied far enough,” wrote Cassie Fish, market analyst, in The Beef. “Comparisons to the 2014 high, on an inflation-adjusted basis, are circulating and indicate the 2025 high has beaten the 2014 high handily. Some market watchers are nervous and seem to be looking for a sign of a ‘top,’ though cash feeder cattle prices have continued to defy gravity.”
Live cattle futures were mixed, with the June contract up 7 cents to $227.07 and the August contract down $1.05 to $218.20.
Cash trade again was very light, with just 636 head sold.
On the formula side, 30,600 head averaging 903 lbs. sold for an average of $361.25.
Cash trade for the week ending June 8 was 78,808 head. Live steers averaged $237.19, and dressed steers averaged $380.40.
The national weekly direct beef type price distribution for the week of June 2-9 was the following on a live basis:
• Negotiated purchases: $236.76.
• Formula net purchases: $228.92.
• Forward contract net purchases: $196.12.
• Negotiated grid net purchases: $229.98.
On a dressed basis:
• Negotiated purchases: $380.50.
• Formula net purchases: $359.28.
• Forward contract net purchases: $321.72.
• Negotiated grid net purchases: $361.98.
Today’s slaughter is estimated to be 119,000 head, 2,000 head below the previous week.
Boxed beef prices were higher on 106 loads, with the Choice cutout up $4.51 to $371.76 and the Select cutout up 91 cents to $359.84.
“Although one could point to the market’s higher boxed beef prices as support, given the historical price point in which the market is trading at, traders need more support to justify trading the contracts any higher,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments.
Feeder cattle
Feeder cattle futures climbed higher, with the August contract up $1.50 to $313.15 and the September contract up $2.05 to $312.75.
The CME Feeder Cattle Index was up $3.58 to $314.04.
Corn futures climbed following a good crop progress report, with the July contract up 5 cents to $4.38 and the September contract up 3 cents to $4.25.
Iowa: Russell Livestock in Russell sold 2,830 head on Monday. Compared to the last auction two weeks ago, steers sold $4-27 higher. Heifers under 650 lbs. sold $2-22 higher, while heifers over 650 lbs. mostly sold $4-8 lower. Benchmark steers averaging 705 lbs. sold for $336-368.25, averaging $364.68.
Nebraska: Tri-State Livestock in McCook sold 771 head on Monday. There were not enough sales for an accurate comparison. Benchmark steers averaging 756 lbs. sold for $339.
New Mexico: Roswell Livestock in Roswell sold 656 head sold on Tuesday. Compared to the last auction, steer calves 300-450 lbs. sold $3-10 lower, 450-500 lbs. were $3 higher, while 500-600 lbs. sold $12-16 lower. Feeder steers 600-650 lbs. were $12-15 lower. Heifer calves 300-500 lbs. sold $3-15 higher and 500-600 lbs. were $12-18 lower. Feeder heifers had no comparable sales to report. A group of steers averaging 719 lbs. sold for $323-331, averaging $327.64. — Charles Wallace, WLJ contributing editor
