Tuesday markets
After yesterday’s record-setting rally, cattle futures came to a halt, mainly closing on both sides of steady.
“The entire beef industry is fearful of the upward price pressures on live cattle and beef,” the folks at the Cattle Report wrote. “This fear will not, on its own, stop the bullish momentum, but these pressures add a risk premium to doing business in this space. The feeling among many that ‘this will end badly’ is a hanging threat that will be realized at some point with a plant closing or consumer backlash over prices.”
Live cattle futures were mixed, with the June contract down 50 cents to $216.32 and the August contract up 2 cents to $211.62.
Cash trade was nonexistent, with only 102 head sold.
On the formula side, 31,600 head averaging 907 lbs. sold for an average of $351.03.
The national weekly direct beef type price distribution for the week of May 5-12 was the following on a live basis:
• Negotiated purchases: $224.34.
• Formula net purchases: $219.80.
• Forward contract net purchases: $199.87.
• Negotiated grid net purchases: $223.86.
On a dressed basis:
• Negotiated purchases: $355.95.
• Formula net purchases: $346.
• Forward contract net purchases: $320.20.
• Negotiated grid net purchases: $340.57.
Today’s slaughter is estimated to be 121,000 head, the same as the previous week.
Boxed beef prices closed mixed on 135 loads, with the Choice cutout up $1.96 to $350.10 and the Select cutout down 76 cents to $334.47.
Feeder cattle
Feeder cattle futures closed slightly lower, with the May contract down 27 cents to $302.52 and the August contract down 37 cents to $306.
The CME Feeder Cattle Index was up $4.89 to $301.03.
Corn futures were lower, with the May contract down 4 cents to $4.36 and the July contract down 5 cents to $4.42.
Nebraska: Tri-State Livestock in McCook sold 470 head on Monday. There were not enough sales for an accurate comparison, but a higher undertone was noted. A group of steers averaging 777 lbs. sold for $298.
New Mexico: Roswell Livestock in Roswell sold 608 head on Monday. Compared to the previous auction, steer calves 500-550 lbs sold $15-22 higher. Feeder steers had insufficient numbers to compare. Heifer calves 500-600 lbs. were steady to $5 higher and 600-650 lbs. feeder heifers sold $16-23 higher. A group of steers averaging 757 lbs. sold for $297.
South Dakota: Sioux Falls Regional in Worthing sold 4,881 head on Monday. Compared to the last auction, feeder steers and heifers sold $10-15 higher. Benchmark steers averaging 716 lbs. sold for $331-358, averaging $348.88. — Charles Wallace, WLJ contributing editor
