Tuesday markets
It’s a Cinco de Mayo turnaround Tuesday, with cattle futures spicing things up, closing higher on strong boxed beef demand.
Live cattle futures closed higher, with the June contract up $1.47 to $253.22 and the August contract $2.17 higher to $248.35.
“Following Monday’s weaker close, the live cattle contracts are higher as traders seem slightly more willing to support the complex now that the weekend has passed and upon seeing continued boxed beef demand,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments.
Cash trade was light, with 408 head sold for $400.
On the formula side, 16,600 head averaging 949 lbs. sold for an average of $390.71.
The national weekly direct beef type price distribution for the week of April 27 to May 4 was the following on a live basis:
• Negotiated purchases: $254.83.
• Formula net purchases: $250.61.
• Forward contract net purchases: $239.01.
• Negotiated grid net purchases: $250.73.
On a dressed basis:
• Negotiated purchases: $399.27.
• Formula net purchases: $392.53.
• Forward contract net purchases: $378.57.
• Negotiated grid net purchases: $388.23.
Today’s slaughter is estimated to be 104,000 head, 5,000 head below the previous week.
Boxed beef prices were higher on 109 loads, with the Choice cutout up 78 cents to $392.34 and the Select cutout $1.64 higher to $392.24.
Feeder cattle
Feeder cattle futures on weaker corn futures, with the May contract up $5.22 to $371.82 and the August contract $5.70 higher to $372.30.
The CME Feeder Cattle Index was $1.51 higher to $375.54.
Corn futures closed lower, with the May contract down 8 cents to $4.65 and the July contract down a nickel to $4.80.
New Mexico: Roswell Livestock in Roswell sold 479 head on Tuesday. Compared to the last auction, steer and heifer calves had no comparable sales, but a higher trend was noted. Feeder steers and heifers were steady to higher. Benchmark steers averaging 726 lbs. sold for $360-372, averaging $369.63.
Texas: Giddings Livestock in Giddings sold 843 head on Monday. Compared to the last auction, feeder steers were steady to $4 lower. Feeder heifers sold $2-6 lower. A group of steers averaging 613 lbs. sold for $400-435, averaging $412.74. — Charles Wallace, WLJ contributing editor
