Tuesday markets
Cattle futures closed lower amid rumors of the New World screwworm moving closer to the border.
“There’s been a lot of chatter surrounding New World screwworm (NWS) this week,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments. “This morning news was circulating that a case of NWS had been detected just one mile from the U.S./Mexico border. But USDA posted on X that they have not confirmed a case that close and the rumor is misinformation.”
Live cattle futures closed lower, with the June contract down $1.32 to $247.67 and the August contract 95 cents lower to $239.65.
Cash trade was light, with 161 head sold.
On the formula side, 23,900 head averaging 939 lbs. sold for an average of $413.54.
The national weekly direct beef type price distribution for the week of May 25 to June 1 was the following on a live basis:
• Negotiated purchases: $257.22.
• Formula net purchases: $265.07.
• Forward contract net purchases: $247.34.
• Negotiated grid net purchases: $263.31.
On a dressed basis:
• Negotiated purchases: $405.35.
• Formula net purchases: $415.01.
• Forward contract net purchases: $384.78.
• Negotiated grid net purchases: $407.59.
Today’s slaughter is estimated to be 110,000 head, 1,000 head below last week.
Boxed beef prices were higher on 115 loads, with the Choice cutout up $1.24 to $394.07 and the Select cutout $1.72 higher to $384.81.
Feeder cattle
Feeder cattle futures closed triple digits lower, with the August contract down $3.12 to $348.42 and the September contract $3.55 lower to $345.12.
“With rumors circulating about New World screwworm and no one knowing what to believe or not to believe at this point, the feeder cattle complex has fallen sharply lower as traders don’t want to be caught in a position of too much optimism,” Stewart wrote.
The CME Feeder Cattle Index was down $6.26 to $367.14.
Corn futures closed lower, with the July contract down 3 cents to $4.40 and the September contract 4 cents lower to $4.48.
Iowa: Russell Livestock in Russell sold 1,654 head on Monday. Compared to the last auction, steers mostly sold $13-19 lower. Heifers under 450 lbs. sold $3-15 higher, while heifers over 450 lbs. sold $11-25 lower. Benchmark steers averaging 713 lbs. sold for $390-417, averaging $407.57.
Texas: Giddings Livestock in Giddings sold 1,175 head on Monday. Compared to the last auction, feeder steers under 500 lbs. were steady, while over 500 lbs. sold $3-5 lower. Feeder heifers under 500 lbs. were fully steady, while over 500 lbs. were steady to $3 lower. Benchmark steers averaging 723 lbs. sold for $360-365, averaging $360.73. — Charles Wallace, WLJ contributing editor
