Tuesday markets
The livestock complex is trading mixed with some corrective selling, as dressed trade in the North is mainly occurring at $330—$15 lower than last week’s weighted average.
Nearby live cattle futures were lower, with the December and February contracts 20 cents lower to $207 and $207.32, respectively. Deferred contracts were 67 cents to triple digits higher.
Cash trade was moderate, with 21,019 head sold. Live steers sold for $208-210, and dressed steers sold between $325-330.
On the formula side, 22,700 averaging 951 lbs. sold for an average of $361.38.
“There’s been a light movement of dressed trade this morning in Nebraska, where cattle are trading anywhere from $325-330, but mostly at $330, which is a $15 decline from last week’s weighted average,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments. “Still, no trade has developed yet in the South, and asking prices are still not known in that region.”
The national weekly direct beef type price distribution for the week of Nov. 17-24 was the following on a live basis:
• Negotiated purchases: $217.97.
• Formula net purchases: $232.81.
• Forward contract net purchases: $201.85.
• Negotiated grid net purchases: $239.33.
On a dressed basis:
• Negotiated purchases: $343.35.
• Formula net purchases: $364.54.
• Forward contract net purchases: $327.61.
• Negotiated grid net purchases: $368.33.
Today’s slaughter is estimated to be 125,000 head, 4,000 head above a week earlier.
Boxed beef prices were mixed on 215 loads, with the Choice cutout 40 cents lower to $370.09 and the Select cutout 42 cents higher to $355.93.
Feeder cattle
Feeder cattle futures regained some ground lost yesterday. The November contract was $2.10 higher to close at $307.07 and the January contract was up $3.07 to $300.87.
The CME Feeder Cattle Index was $3.34 lower to $336.38.
Corn futures closed mixed, with the December contract down a fraction to $4.23 and the March contract a penny higher to $4.38.
Iowa: Russell Livestock in Russell sold 4,020 head on Monday. Compared to the last auction, steers sold sharply lower and heifers mostly sold $3-27 lower. Benchmark steers averaging 718 lbs. sold for $320-356, and averaged $341.06.
New Mexico: Roswell Livestock in Roswell sold 999 head on Monday. Compared to the previous auction, steer and heifer calves sold sharply lower and steer yearlings 600-800 lbs. were sharply lower. Feeder heifers had insufficient numbers to compare, but a strong undertone was noted. Benchmark steers averaging 767 lbs. sold for $260-277, averaging $270.62. — Charles Wallace, WLJ contributing editor
