Tuesday markets
Despite higher boxed beef prices, cattle futures closed on both sides of steady.
“CME cattle futures are having a lackluster, two-sided trade today, and have done nothing to invalidate last week’s technical key reversal,” Cassie Fish, market analyst, wrote in The Beef. “Volume has dried up as many participants have retreated to the sidelines.”
Live cattle closed on both sides of steady, with the June contract up 20 cents to $213.17 and the August contract down 7 cents to $207.85.
Cash trade was light, with 388 head sold—not enough for a market trend.
On the formula side, 30,400 head averaging 917 lbs. sold for an average of $353.22.
The national weekly direct beef type price distribution for the week of May 12-19 was the following on a live basis:
• Negotiated purchases: $226.52.
• Formula net purchases: $223.79.
• Forward contract net purchases: $200.90.
• Negotiated grid net purchases: $224.95.
On a dressed basis:
• Negotiated purchases: $357.82.
• Formula net purchases: $352.58.
• Forward contract net purchases: $316.92.
• Negotiated grid net purchases: $348.64.
Today’s slaughter is estimated to be 120,000 head, 1,000 head lower than the previous week.
Boxed beef prices were higher on 101 loads, with the Choice cutout up $3.94 to $358.75 and the Select cutout up 85 cents to $344.96.
Feeder cattle
Feeder cattle futures were slightly higher, with the May contract up 32 cents to $296 and the August contract up 2 cents to $297.50.
The CME Feeder Cattle Index was down $1.93 to $298.86.
Corn futures closed higher, with the July and September contracts up 7 cents to $4.54 and $4.35, respectively.
Iowa: Russell Livestock in Russell sold 5,003 head on Monday. Compared to the last auction two weeks ago, light steers under 500 lbs. and 550-650 lbs. sold $2-23 lower, while 500-550 lbs. and 650 lbs. and heavier steers sold steady to $22 higher. Heifers less than 500 lbs. sold steady to $4 higher, while heifers over 500 lbs. sold $10 to sharply higher. Benchmark steers averaging 714 lbs. sold for $325-350, averaging $346.59.
New Mexico: Roswell Livestock in Roswell sold 1,113 head on Monday. Compared to the last auction, steer calves 400-550 lbs. sold $9-10 lower, with the exception of 450-500 lbs. Were $15-22 higher. Feeder steers 600-650 lbs. sold $12-18 higher. Heifer calves 400-500 lbs. sold $4-10 lower, while 500-550 lbs. sold $15-21 higher. Feeder heifers 600-650 lbs. were $8-12 higher. A group of steers averaging 750 lbs. sold for $302. — Charles Wallace, WLJ contributing editor
