Tuesday markets
Cattle contracts closed modestly higher as the market found support on slightly lower corn prices.
Live cattle closed modestly higher, with the December contract up 10 cents to $152.67 and the February contract up 12 cents to $154.80.
Cash trade was nonexistent, with only 130 head sold—not enough for a market trend.
“The cash cattle market hasn’t seen any business develop yet and it’s not likely that the market sees any real interest until Wednesday, or potentially Thursday if feedlots accomplish pushing this week’s market higher again,” ShayLe Stewart, DTN livestock analyst, wrote in the midday comments.
On the formula side, 24,000 head averaging 883 lbs. sold for an average of $249.69.
The national weekly direct beef type price distribution for the week of Nov. 21 to Nov. 28 was the following on a live basis:
• Negotiated purchases: $156.16.
• Formula net purchases: $154.50.
• Forward contract net purchases: $150.93.
• Negotiated grid net purchases: $153.73.
On a dressed basis:
• Negotiated purchases: $245.11.
• Formula net purchases: $245.76.
• Forward contract net purchases: $237.08.
• Negotiated grid net purchases: $244.50.
Slaughter for today is expected to be 128,000 head, 1,000 head below last week.
Boxed beef closed mixed on 152 loads, with the Choice cutout up 21 cents to $254.74 and the Select cutout down $2.71 to $225.82.
“Boxed beef values have slumped overall as the strong rib, trading at the highest point of 2022 last week, is not enough to offset significant weakness in the chuck, the largest primal,” Cassie Fish, market analyst for The Beef, wrote. “The chuck lost $13 week over week while rib gained $21, surpassing prices the last two years, setting a record for that week. There are one to two weeks left of the seasonal rib push. Plenty of other items, like the brisket, flank have struggled all fall relative to year-ago pricing.”
Feeder cattle
Feeder cattle closed higher, with the January contract up $1.12 to $178 and the March contract up 57 cents to $181.17. The CME Feeder Cattle Index was unchanged at $177.19.
“It’s also helping that Monday’s CME feeder cattle index closed $3.56 higher, proving that buyers are looking to the market’s auctions and trying to find deals where they can make money and continue to participate,” Stewart wrote.
Corn closed lower, with the December contract down 3 cents to $6.65 and the March contract down a penny to $6.69.
Iowa: Russell Livestock Feeder Cattle in Russell sold 3,500 head Monday. Compared to the last auction, steers under 450 lbs. were lower, while steers over 450 lbs. were higher. Heifers were all higher. Benchmark steers averaging 721 lbs. sold between $164.50-189.25 and averaged $183.87.
Nebraska: Tri-State Livestock Auction in McCook sold 1,166 head Monday. There were not enough sales for an accurate comparison. A group of steers averaging 681 lbs. sold for $175.50.
New Mexico: Roswell Livestock Auction in Roswell sold 816 head Monday. Compared to the last auction, steer calves sold mostly $14-18 lower on much lighter receipts. Heifer calves sold $3-6 lower, except for 500-550 lbs., which were $4-5 higher. Feeder steers and heifers sold steady to $5 higher on comparable sales. A group of steers averaging 724 lbs. sold between $156-170, averaging $166.63.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 3,850 head Monday. Compared to the previous auction, feeder steers and heifers sold $2-6 lower, except 400-500 lb. steers, which were $2-4 higher. Benchmark steers averaging 728 lbs. sold between $172-183 and averaged $179.47. — Charles Wallace, WLJ editor
