Tuesday markets
Cattle futures were higher as grain futures sank and traders saw positivity in the equities market.
Live cattle futures were higher, with the December contract up 70 cents to $184.40 and the February contract up 75 cents to $186.12.
“The change in the market’s direction has thankfully pulled the spot December contract away from its 100-day moving average, which continues to be a threshold the market is contemplating,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments.
Cash trade was light, with 500 head sold—not enough for a market trend.
On the formula side, 26,100 head averaging 923 lbs. sold for an average of $308.08.
“This week buyers and sellers will attempt to find price points for cattle trades in the cash markets following an unclear market definition last week with very low volume of sales,” the Cattle Report wrote. “The price ranges last week were wide. In the North last week, live prices ranged from $185-$188. Dressed sales were from $290-298. In the South, only very light trade was reported at $187. Prices were steady to $3 lower.”
The national weekly direct beef type price distribution for the week of Nov. 4-11 was the following on a live basis:
• Negotiated purchases: $186.63.
• Formula net purchases: $193.36.
• Forward contract net purchases: $189.50.
• Negotiated grid net purchases: $196.39.
On a dressed basis:
• Negotiated purchases: $293.57.
• Formula net purchases: $304.21.
• Forward contract net purchases: $300.26.
• Negotiated grid net purchases: $301.50.
Today’s slaughter is estimated to be 121,000 head, 3,000 head below a week earlier.
Boxed beef prices were mixed on 123 loads, with the Choice cutout up 6 cents to $308.27 and the Select cutout down $1.92 to $279.92.
Feeder cattle
Feeder cattle futures were also higher, with the November contract up 67 cents to $246.82 and the January contract up $1.32 to $243.57. The CME Feeder Cattle Index was down 19 cents to $249.64.
“The spot January contract is trading slightly above both its 100-day and 40-day moving averages, but the market will need continued support if it’s going to maintain its elevated position through Tuesday’s end and later this week,” Stewart wrote.
Corn futures were lower, with the December contract down a penny to $4.28 and the March contract down 2 cents to $4.40.
New Mexico: Roswell Livestock in Roswell sold 944 head on Monday. Compared to the last auction, steer calves sold $4-10 lower. Feeder steer and heifer yearlings had insufficient numbers to compare. Heifer calves 400-500 lbs. sold $6-15 higher, and 500-600 lbs. were $8-9 lower. Benchmark steers averaging 716 lbs. sold between $215-223, averaging $219.77. — Charles Wallace, WLJ contributing editor
