Tuesday markets
Cattle futures closed mostly higher, continuing yesterday’s rally on the news of the suspension of importing feeder cattle from Mexico. Most grain futures closed lower with the news of President-elect Donald Trump’s desire to impose a 25% tariff on goods imported from Canada and Mexico.
Live cattle futures were mixed, with the December contract up 40 cents to $186.90 and the February contract unchanged at $187.70.
Cash trade was light, with only 345 head sold—not enough for a market trend.
On the formula side, 30,100 head averaging 909 lbs. sold for an average of $301.
The national weekly direct beef type price distribution for the week of Nov. 18-25 was the following on a live basis:
• Negotiated purchases: $188.48.
• Formula net purchases: $189.19.
• Forward contract net purchases: $187.47.
• Negotiated grid net purchases: $192.87.
On a dressed basis:
• Negotiated purchases: $291.48.
• Formula net purchases: $298.91.
• Forward contract net purchases: $300.36.
• Negotiated grid net purchases: $301.91.
Today’s slaughter is estimated to be 126,000 head, the same as a week earlier.
Boxed beef prices were higher on 129 loads, with the Choice cutout up $1.86 to $311.57 and the Select cutout $1.75 to $275.49.
“In the boxed beef market, the holiday rib is on the run, printing at $622/cwt this morning, a new high for the year and exceeding 2023 levels,” Cassie Fish, market analyst, wrote for The Beef. “The seasonal pattern is for rib strength into the first week of December before prices fall. Thanks to the rib, the cutout surged to $313.64, the highest level since November 6. Other items in the carcass are near their recent lows.”
Feeder cattle
Feeder cattle futures closed triple digits higher, with the January contract up $2.62 to $258.10 and the March contract up $2.15 to $256.47. The CME Feeder Cattle Index was up 99 cents to $255.71.
“Feeder cattle futures remain strong off the news of closing the Mexican border to further feeder cattle imports,” Fish wrote. “For perspective, in the last eight years, fed cattle slaughter has ranged between 25M and 26M head while annual Mexican feeder cattle imports have averaged around 1.2M head.”
Corn futures were lower, with the December contract down 4 cents to $4.20 and the March contract down 5 cents to $4.28.
Iowa: Russell Livestock in Russel sold 3,780 head on Monday. Compared to the last auction, steers sold steady to $20 higher. Heifers sold mostly $5-24 higher, except for 400-450 lbs. sold $5 lower. Benchmark steers averaging 776 lbs. sold for $267-274.50, averaging $273.69.
Nebraska: Tri-State Livestock in McCook sold 1,275 head on Monday. Compared to the previous auction, steers under 600 lbs. sold $6-18 higher and over 600 lbs. were $8-10 lower. Heifers sold $2-15 higher. A group of steers averaging 906 lbs. sold for $257.25. — Charles Wallace, WLJ contributing editor
