Tuesday markets
Cattle futures have settled into mixed trade as traders are uncertain about what comes next.
“Live cattle futures are trading lower at midday, which is a general disappointment following the sharp limit gains Monday, strong triple-digit support in feeder cattle futures, and active gains in morning boxed beef values,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments.
Live cattle futures closed lower, with the December contract $1.35 lower to close at $227.20 and the February contract down 60 cents to $226.40.
Cash trade was light, with 1,179 head sold for $227.
On the formula side, 20,200 head averaging 968 lbs. sold for an average of $375.77.
“Cash cattle is starting with another slow start to the day, with some early asking prices starting out around $232-plus in the South, but they are still not established in the North,” Stewart wrote. “Significant trade volume will likely be delayed until Wednesday or later.”
The national weekly direct beef type price distribution for the week of Nov. 3-10 was the following on a live basis:
• Negotiated purchases: $229.05.
• Formula net purchases: $239.74.
• Forward contract net purchases: $203.48.
• Negotiated grid net purchases: $242.36.
On a dressed basis:
• Negotiated purchases: $358.32.
• Formula net purchases: $376.09.
• Forward contract net purchases: $321.48.
• Negotiated grid net purchases: $373.89.
Today’s slaughter is estimated to be 116,000 head, 2,000 head below a week earlier.
Boxed beef prices were higher on 132 loads, with the Choice cutout $1.90 higher to $379.22 and the Select cutout up 38 cents to $360.08.
Feeder cattle
Feeder cattle closed higher, with the November contract $2.02 higher to close at $337.67 and the January contract up 32 cents to $329.15.
The CME Feeder Cattle Index was $1.59 lower to $344.37.
Corn futures were higher, with the December and March contracts 2 cents higher to $4.32 and $4.47, respectively.
Texas: Giddings Livestock in Giddings sold 1,136 head on Monday. Compared to the last auction, lightweight feeder steers under 300 lbs. were steady to $6 lower, while feeder steers over 300 lbs. sold steady to $5 higher. Feeder heifers sold $4-8 higher across all classes. A group of steers averaging 728 lbs. sold for $315-333 and averaged $326.19. — Charles Wallace, WLJ contributing editor
