Tuesday markets
Cattle futures shrugged off early weakness, closing higher.
Live cattle futures closed higher, with the June contract $1.50 higher to $248.02 and the August contract $2.97 higher to $239.70.
The live cattle complex is trading mildly higher into Tuesday’s noon hour as the market simply feels it has more upward mobility following Monday’s decline, which pulled the contracts away from resistance at its 40-day moving average,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments.
Cash trade was light, with only 109 head sold. On the formula side, 22,500 head averaging 947 lbs. sold for an average of $407.95.
The national weekly direct beef type price distribution for the week of June 1-8 was the following on a live basis:
• Negotiated purchases: $256.93.
• Formula net purchases: $263.21.
• Forward contract net purchases: $250.16.
• Negotiated grid net purchases: $262.16.
On a dressed basis:
• Negotiated purchases: $404.71.
• Formula net purchases: $410.46.
• Forward contract net purchases: $380.14.
• Negotiated grid net purchases: $408.93.
Today’s slaughter is estimated to be 109,000 head, 1,000 head below last week.
Boxed beef prices were mixed on 138 loads, with the Choice cutout 70 cents higher to $392.90 and the Select cutout $1.16 lower to $376.93.
Feeder cattle
Feeder cattle also closed higher, with the August contract up $3.45 to $254.15 and the September contract $3.25 higher to $350.57.
The CME Feeder Cattle Index was $5.63 higher to $367.01.
Corn futures closed mostly steady, with the July contract up a fraction to $4.19 and the September contract unchanged at $4.27.
Texas: Giddings Livestock in Giddings sold 746 head on Monday. Compared to the last auction, lightweight feeder steers and heifers weighing under 400 lbs. were $15-20 lower on a limited test. Feeder steers over 400 lbs. sold $2-5 higher. Feeder heifers over 400 lbs. were fully steady to $2 higher. A group of steers averaging 730 lbs. sold for $350-375, averaging $361.72. — Charles Wallace, WLJ contributing editor
