Tuesday markets
Cattle futures closed mixed, with boxed beef prices continuing their climb.
“The livestock complex is trading mixed into Tuesday’s noon hour as plenty of pressure still looms, but some of the markets have found modest technical support,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments.
Live cattle futures closed in the green, with the April contract up $1.02 to $234.12 and the June contract $1.02 higher to $230.67.
“Today’s slight uptick in price doesn’t mean that the pressures (both external and internal) have merely disappeared, because they haven’t, but rather that traders believe enough downside regression has been seen in the near term and that it’s both acceptable and safe for the complex to trade mildly higher,” Stewart continued.
USDA reported that no cash trade occurred today.
On the formula side, 19,200 head averaging 976 lbs. sold for an average of $394.77.
The national weekly direct beef type price distribution for the week of Feb.23 to Mar. 2 was the following on a live basis:
• Negotiated purchases: $242.86.
• Formula net purchases: $251.42.
• Forward contract net purchases: $239.45.
• Negotiated grid net purchases: $256.47.
On a dressed basis:
• Negotiated purchases: $382.60.
• Formula net purchases: $393.32.
• Forward contract net purchases: $368.09.
• Negotiated grid net purchases: $381.56.
Today’s slaughter is estimated to be 109,000 head, 2,000 head below the previous week.
Boxed beef prices were higher on 90 loads, with the Choice cutout up $6.71 to $388.05 and the Select cutout 37 cents higher to $378.58.
Feeder cattle
Feeder cattle futures closed slightly lower, with the March contract down 7 cents to $357.20 and the April contract 2 cents lower to $353.30.
The CME Feeder Cattle Index was 97 cents lower to $371.82.
Corn futures closed higher, with the March contract up a penny to $4.34 and the May contract up a fraction to $4.46.
Iowa: Russell Livestock in Russell sold 3,611 head on Monday. Compared to the last auction, steers sold mostly $2-21 lower. Heifers sold mostly $3-20 lower. Benchmark steers averaging 715 lbs. sold between $388-412, averaging $402.17.
New Mexico: Roswell Livestock in Roswell sold 788 head on Monday. Compared to the last auction, steer calves sold steady to higher, with a few $5 lower. Feeder steers sold steady to lower. Heifer calves sold lower with no comparable sales in heifer yearling sales. Benchmark steers averaging 712 lbs. sold between $357-365, averaging $363.11. — Charles Wallace, WLJ contributing editor
