Tuesday markets
Cattle futures closed mixed after opening lower as traders are cautious that the market is overbought.
“This unexpected surge in Choice boxed beef values this morning to the highest level since 2023 has sparked an intra-day futures market rally in what has otherwise been the continuation of a big sell-off in CME cattle futures,” Cassie Fish, market analyst, wrote in The Beef. “Cattle futures are correcting after becoming extremely overbought last week, accompanied by a monstrous surge in open interest.”
Live cattle futures closed slightly higher, with the April contract up 47 cents to $206.37 and the June contract up 17 cents to $202.32. Deferred contracts closed slightly lower.
Cash trade was moderate, with 1,557 head sold. Dressed steers sold for $330-334.
On the formula side, 22,600 head averaging 897 lbs. sold for an average of $325.68.
“Until traders see what this week’s fed cash cattle trade is going to amount to—they’ll likely remain on edge and leery of being too supportive,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments. “Asking prices are noted in the South at $212-plus but are still not established in the North. Trade will likely be delayed until Thursday or Friday.”
The national weekly direct beef type price distribution for the week of March 17-24 was the following on a live basis:
• Negotiated purchases: $212.35.
• Formula net purchases: $204.40.
• Forward contract net purchases: $193.44.
• Negotiated grid net purchases: $203.38.
On a dressed basis:
• Negotiated purchases: $335.20.
• Formula net purchases: $322.23.
• Forward contract net purchases: $312.40.
• Negotiated grid net purchases: $321.71.
Today’s slaughter is estimated to be 124,000 head, 1,000 head above than a week earlier.
Boxed beef prices were higher on 126 loads, with the Choice cutout up $8.09 to $335.19 and the Select cutout up 47 cents to $335.19.
Feeder cattle
Feeder cattle futures were mixed, with the March contract up 37 cents to $286.97 and the April contract down 40 cents to $284.85.
The CME Feeder Cattle Index was down 79 cents to $286.99.
Corn futures were lower, along with the grains, with the May and July contracts down 6 cents to $4.57 and $4.65, respectively.
Nebraska: Tri-State Livestock in McCook sold 736 head on Monday. Compared to the previous auction, a few lightweight steers and heifers sold steady to 5.00 higher. A higher undertone was noted on yearling weight steers and heifers. A group of steers averaging 715 lbs. sold for $314.
New Mexico: Roswell Livestock in Roswell 846 head on Monday. Compared to the last auction, steer calves sold steady to $5-8 lower, while heifer calves sold steady to $5 higher. Feeder steers and heifers sold steady to $3-5 higher. A group of steers averaging 777 lbs. sold for $272.
South Dakota: Sioux Falls Regional Cattle in Worthing sold 3,370 head on Monday. Compared to the last auction, feeder steers sold $5-10 higher, with instances of $15 higher. Feeder heifers under 700 lbs. sold $10-20 higher, and over 700 lbs. were $5-10 higher. Benchmark steers averaging 716 lbs. sold for $300-332, averaging $320.95. — Charles Wallace, WLJ contributing editor
