Tuesday markets
Cattle futures surged triple digits, extending yesterday’s rally.
Live cattle futures gained triple digits, with the April contract up $3.47 to $243.02 and the June contract $3.07 higher to $243.27.
“The ability to continue to push boxed beef prices higher as they near $400 per cwt is adding even more momentum to the live cattle complex,” DTN wrote in its midday comments. “The combination of already tight supplies and potential cow losses due to Nebraska fires and feed shortages due to drought conditions could add more momentum to the market in the coming days and weeks.”
Cash trade was light, with 102 head sold for $238.
On the formula side, 20,900 head averaging 949 lbs. sold for an average of $374.47.
The national weekly direct beef type price distribution for the week of March 23-30 was the following on a live basis:
• Negotiated purchases: $236.40.
• Formula net purchases: $238.96.
• Forward contract net purchases: $244.96.
• Negotiated grid net purchases: $244.61.
On a dressed basis:
• Negotiated purchases: $371.73.
• Formula net purchases: $375.40.
• Forward contract net purchases: $379.78.
• Negotiated grid net purchases: $380.52.
Today’s slaughter is estimated to be 108,000 head, 1,000 head above the previous week.
Boxed beef prices closed higher on 96 loads, with the Choice cutout up $1.39 to $395.49 and the Select cutout $1.92 higher to $392.93.
Feeder cattle
Feeder cattle futures surged, with the April contract gaining $5.82 to $369.12 and the May contract $5.15 higher to close at $366.47.
The CME Feeder Cattle Index was $2.14 higher to $365.12.
Corn futures closed higher on planting intention news from the USDA, with the May contract up 2 cents to $4.57 and the July contract up a fraction at $4.68.
New Mexico: Roswell Livestock in Roswell sold 654 head on Monday. Compared to the last auction, steer calves 400-550 lbs. sold steady to $20 higher and heifer calves 350-500 lbs. sold $5-20 higher, with 500-600 lbs. being $15 lower. Feeder steers and feeder heifers had insufficient numbers to compare, but a higher trend was felt throughout. Benchmark steers averaging 711 lbs. sold for $373-387, averaging $376.10.
Texas: Giddings Livestock in Giddings sold 1,262 head on Monday. Compared to the last auction, feeder cattle market sold steady. Benchmark steers averaging 719 lbs. sold between $360-390, averaging $367.78. — Charles Wallace, WLJ contributing editor
