Tuesday markets
Grains rallied prior to the closing bell, putting the brakes on live cattle’s push higher and sending feeder cattle lower by double digits.
Live cattle traded most of the morning higher but ultimately closed mixed. The December contract closed lower 30 cents to $151.27, and the February contract was higher 50 cents to $153.05.
“The spot February contract is teetering with both its 40-day and 100-day moving averages, and if the contract is indeed able to close above that threshold, the market could be building a support plane into the complex,” ShayLe Stewart, DTN livestock analyst, wrote in the midday comments.
Cash trade was very light, with 1,847 head selling for $154.
“Packers will be purchasing for a holiday-shortened week,” the Cattle Report wrote. “Smaller show lists in Texas and higher in Kansas and Nebraska will set the stage for this week. Packer’s hope will be to pressure the market prices this week and widen thin margins. Cattle owners will be asking for higher prices.”
On the formula side, 21,100 head averaging 867 lbs. sold for $244.24.
The national weekly direct beef type price distribution for the week of Nov. 7 to Nov. 14 was the following on a live basis:
• Negotiated purchases: $152.91.
• Formula net purchases: $154.01.
• Forward contract net purchases: $152.57.
• Negotiated grid net purchases: $153.54.
On a dressed basis:
• Negotiated purchases: $241.57.
• Formula net purchases: $244.80.
• Forward contract net purchases: $235.22.
• Negotiated grid net purchases: $241.76.
Slaughter for the day is projected to be 129,000 head, the same as last week.
Boxed beef prices closed mixed on 157 loads, with the Choice cutout up 38 cents to $258.36 and the Select cutout down $1.45 to $231.76.
Feeder cattle
Feeder cattle closed lower, with the November contract down $1.27 to $175.67 and the January contract down $2.42 to $177.02. The CME Feeder Cattle Index was down 5 cents to $175.18.
Corn traded mostly steady throughout the day but rallied by the closing. The December contract was up 9 cents to $6.66, and the March contract was up 10 cents to $6.69.
Nebraska: Tri-State Livestock Auction in McCook sold 1,370 head Monday. Compared to the previous auction, steers were $6-19 higher, and heifers were $1-2 higher. A group of steers averaging 819 lbs. sold between $169.50-178.50 and averaged $176.02.
New Mexico: Roswell Livestock Auction in Roswell sold 1,769 head Monday. Compared to the last auction, steer calves sold steady to $4 higher, with 400-450 lbs. $10-12 higher. Heifer calves were steady to $5 lower. Feeder steers sold steady to $2 lower on comparable sales. Feeder heifers were not well tested. A group of steers averaging 719 lbs. sold between $151-171, averaging $156.22.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 2,200 head Monday. Compared to the last auction, feeder steers sold steady to $4 lower, except those under 600 lbs., which were $1-4 higher. Feeder heifers sold $1-5 lower, except those under 550 lbs., which were steady to $5 higher. Benchmark steers averaging 767 lbs. sold between $180.50-181 and averaged $180.77. — Charles Wallace, WLJ editor
