Tuesday markets
Cattle futures continued their rally, taking out last week’s low on technical buying ahead of cash trade.
Live cattle futures closed higher, with the December contract up $3 to $219.20 and the February contract $2.47 higher to $222.57.
“At this point the rally’s momentum seems to be stemming from trader support, and it’s too early in the week to see what’s going to become of this week’s fed cash cattle market,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments. “But with packers having been able to secure more inventory in recent weeks, it’s assumed that fed cash cattle prices will trade steady at best this week.”
USDA reported no cash trade occurred today. On the formula side, 24,900 head averaging 970 lbs. sold for an average of $358.72.
The national weekly direct beef type price distribution for the week of Nov. 2-9 was the following on a live basis:
• Negotiated purchases: $215.70.
• Formula net purchases: $229.69.
• Forward contract net purchases: $233.50.
• Negotiated grid net purchases: $232.08.
On a dressed basis:
• Negotiated purchases: $338.36.
• Formula net purchases: $362.80.
• Forward contract net purchases: $372.38.
• Negotiated grid net purchases: $355.48.
Today’s slaughter is estimated to be 111,000 head, 4,000 head above last week.
Boxed beef prices were mixed on 11 loads, with the Choice cutout up 24 cents to $362.98 and the Select cutout down $2.11 to $351.62.
Stewart said Tuesday’s World Agricultural Supply and Demand Estimates (WASDE) report offered mostly disappointing news for cattle and beef markets. USDA lowered its 2026 beef production forecast by 40 million pounds as packers slowed slaughter more than expected. The fourth-quarter steer price forecast fell to $220/cwt, while 2027 projections remained unchanged at $235 for both the first and second quarters and $240 for the third. USDA raised its 2026 beef import forecast by 89 million lbs., reflecting strong demand and historically tight domestic supplies, and increased projected exports by 1 million lbs. on continued demand from East Asia.
Feeder cattle
Feeder cattle futures also closed higher, with the November contract up $2 to $330.35 and the January contract $2.50 higher to $326.57.
The CME Feeder Cattle Index was down $4.56 to $332.85.
Corn futures closed higher on favorable WASDE news, with the December and March contracts up 9 cents to $4.49 and $4.61, respectively.
Iowa: Russell Livestock in Russell sold 1,831 head on Monday. Compared to the previous auction, steers under 500 lbs. and steers between 650-750 lbs. sold sharply lower, while all other steers sold mostly $6-25 lower. Heifers sold mostly $6-26 lower. Benchmark steers averaging 736 lbs. sold for $327-336, averaging $333.67.
Texas: Giddings Livestock in Giddings sold 481 head on Monday. Compared to the last auction, feeder steers under 500 lbs. were $3-10 lower. Feeder steers over 500 lbs. were steady to $3 lower. Feeder heifers were $2-8 lower. A group of benchmark steers averaging 723 lbs. sold for $310. — Charles Wallace, WLJ contributing editor
