Tuesday markets
Like a bit of St. Patrick’s Day luck, cattle futures closed higher even without any fresh fundamental developments driving the move.
“Yes, midday boxed beef prices are higher, but aside from that, the market hasn’t found much other fundamental support this week,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments. “It’s fully expected that later this week, when the fed cash cattle market does begin to trade, that prices will likely be lower given the reduction in throughput.”
Live cattle futures closed higher, with the April contract up $1.97 to $235.22 and the June contract $1.82 higher to close at $233.70.
Cash trade was minimal, with 199 head sold.
On the formula side, 25,300 head averaging 970 lbs. sold for an average of $382.43.
The national weekly direct beef type price distribution for the week of March 9-16 was the following on a live basis:
• Negotiated purchases: $235.38.
• Formula net purchases: $246.51.
• Forward contract net purchases: $242.17.
• Negotiated grid net purchases: $248.26.
On a dressed basis:
• Negotiated purchases: $372.09.
• Formula net purchases: $385.69.
• Forward contract net purchases: $372.57.
• Negotiated grid net purchases: $387.13.
Today’s slaughter is estimated to be 109,000 head, 1,000 head above the previous week.
Boxed beef prices were higher on 107 loads, with the Choice cutout 65 cents higher to $403.31 and the Select cutout up $2.21 to $396.72.
Feeder cattle
Feeder cattle futures gained over $4, with the March contract $4.35 higher to $359.80 and the April contract up $4.95 to $354.80.
The CME Feeder Cattle Index was $1.26 higher to $358.31.
Corn futures were mixed, with the May contract unchanged at $4.54 and the July contract down a fraction to $4.65.
Iowa: Russell Livestock in Russell sold 1,278 head on Monday. Compared to the last auction two weeks ago, steers sold mostly steady to $15 higher. Heifers sold mostly steady to $5 lower. Benchmark steers averaging 726 lbs. sold between $386-415, averaging $399.75.
Texas: Giddings Livestock in Giddings sold 847 head on Monday. Compared to the last auction, feeder steers and heifers under 400 lbs. were fully steady. Feeder steers over 400 lbs. sold $3-8 higher, and feeder heifers over 400 lbs. were $2-6 higher. A group of steers averaging 770 lbs. sold for $360. — Charles Wallace, WLJ contributing editor
