Tuesday markets
Cattle futures continued yesterday’s rally, closing triple digits higher.
Live cattle futures were higher, with the December contract up $2.47 to $186.57 and the February contract up $2.02 to $188.
“The live cattle complex is again trading higher into the day’s noon hour as the added interest of traders has been the bullish wind the market was longing for,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments. “It would be a near perfect storm for the market if its fundamentals were helping aid trader movement along, but at this point, the live cattle market’s fundamentals continue to be lethargic as boxed beef prices are still mixed, and it’s yet to be seen what the cash cattle market will do this week.”
Cash trade was light, with 1,068 head sold. Dressed steers sold for $290.
On the formula side, 30,300 head averaging 908 lbs. sold for an average of $303.09.
The national weekly direct beef type price distribution for the week of Nov. 11-18 was the following on a live basis:
• Negotiated purchases: $184.87.
• Formula net purchases: $191.84.
• Forward contract net purchases: $189.13.
• Negotiated grid net purchases: $194.68.
On a dressed basis:
• Negotiated purchases: $290.61.
• Formula net purchases: $302.27.
• Forward contract net purchases: $300.61.
• Negotiated grid net purchases: $302.21.
Today’s slaughter is estimated to be 126,000 head, 5,000 head above a week earlier.
“Processors will likely increase the slaughter volume this week in anticipation of smaller volumes Thanksgiving week and in response to improving box prices,” the Cattle Report wrote. “Sellers of fed cattle will be tougher traders this week as they sense a stronger position despite next week’s pared back slaughter volumes.”
Boxed beef prices were mixed on 135 loads, with the Choice cutout up $1.51 to $308.79 and the Select cutout down $3.54 to $271.91.
Analysts released the pre-report estimates for Friday’s Cattle on Feed report release. The consensus is that cattle on feed will be 99.9% for feedlots of 1,000 head or greater in November. Placements in October are estimated to be 103.3%, and marketings for October are predicted at 105.1%.
Feeder cattle
Feeder cattle futures also closed higher, with the November contract up $2.42 to $254.25 and the January contract up $2.50 to $252. The CME Feeder Cattle Index was up $1.06 to $253.68.
Corn futures were lower, with the December and March contracts down 2 cents to $4.27 and $4.37, respectively.
Iowa: Russell Livestock in Russell sold 2,482 head on Monday. Compared to the last auction, six weight steers sold steady to $2 lower, while all others sold mostly $2-8 higher. Heifers sold mostly $6-8 higher, except for 450-500 lbs. and 550-600 lbs., which sold $7-14 lower. Benchmark steers averaging 761 lbs. sold for $248-278, averaging $268.27.
Nebraska: Tri-State Livestock in McCook sold 2,151 head on Monday. There were not enough sales for an accurate comparison. Benchmark steers averaging 771 lbs. sold for $266.
South Dakota: Sioux Falls Regional in Worthing sold 4,036 head on Monday. Compared to the last auction, steer calves under 550 lbs. were not well compared and over 550 lbs. sold with steady to higher undertones. Heifer calves under 500 lbs. sold with lower undertones, while 500-600 lbs. were $5-10 higher. Yearling feeder steers sold steady to $2 higher, and yearling heifers traded steady, with instances of $6 higher on 750 lbs. Benchmark steers averaging 775 lbs. sold for $268-275, averaging $269.88. — Charles Wallace, WLJ contributing editor
