Tuesday markets
Cattle futures closed mixed, reacting to a bearish Cattle on Feed report.
“Truthfully, Tuesday’s mixed behavior is somewhat refreshing to see as I was prepared for another day of steep downfall following last Friday’s bearish Cattle on Feed report,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments. “But thankfully, traders seem to believe the market has endured enough technical pressure regarding the report, and its main focus again seems to be on what fundamental support is or is not going to develop this week.”
Live cattle closed lower, with the June contract down $1.07 to $248.22 and the August contract down 45 cents to $239.15. Deferred contracts were 17-45 cents higher.
Cash trade was light, with just 70 head sold.
On the formula side, 20,800 head averaging 948 lbs. sold for an average of $414.94.
Cash trade for the week ending was 49,783 head. Live steers averaged $260.44, and dressed steers averaged $410.25.
Today’s slaughter is estimated to be 111,000 head, 1,000 head above the prior week. Last week’s slaughter is projected to be 528,000 head. Total beef production under Federal Inspection for the week ending May 22 was 474.4 million lbs., down 1.3% from the previous week.
“The struggle at the beef plants with negative margins is creating a negative backdrop for slaughter volumes in the upcoming weeks,” the Cattle Report wrote. “Next week, the slaughter could be under 450,000 with the holiday Monday. They are finding a little relief from the cash markets for fed cattle this week with a $5-7 fall from last week’s highs. Supplies of fed cattle will continue to be short.”
Boxed beef prices were higher on 67 loads, with the Choice cutout up $2.63 to $392.90 and the Select cutout up $5.30 to $390.30.
USDA’s Cattle on Feed report released on May 22 showed cattle and calves on feed for feedlots with a capacity of 1,000 or more head totaled 11.6 million head on May 1, 2% above last year. Placements in feedlots during April totaled 1.70 million head, 6% above 2025. Marketings of fed cattle during April totaled 1.64 million head, 10% below last year, and other disappearances in April totaled 52,000 head, 4% above 2025.
Feeder cattle
Feeder cattle futures closed mixed, with the August contract down 40 cents to $349.45 and the September contract up 12 cents to $347.02.
The CME Feeder Cattle Index was $2.52 lower at $368.20.
Corn futures closed lower, with the July and September contracts down 5 cents to $4.57 and $4.64, respectively.
Auction markets were closed on Memorial Day.
South Dakota: Ft. Pierre Livestock in Ft. Pierre sold 4,848 head on Friday. Compared to the last auction, lighter-weight steers were steady to $10 lower on limited comparisons; steers from 800-949 lbs. were $6-10 higher, with instances of $15 higher. Heifers sold unevenly steady on limited comparisons. Benchmark steers averaging 728 lbs. sold for $389-423, averaging $403.25. — Charles Wallace, WLJ contributing editor
