Tuesday markets
Cattle futures fell on rumors of a possible reopening of the Mexican border to feeder cattle imports, despite USDA Secretary Brooke Rollins clarifying that the U.S. is not yet ready.
“Although the industry knew that at some point the border was going to be reopened, the cat and mouse game of trying to pinpoint when that is going to happen has a negative impact on the market, as one can see this morning,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments.
Live cattle futures closed sharply lower, with the December contract down $4.42 to close at $227.77 and the February contract $5.02 lower to $225.37.
Cash trade was nonexistent, with 119 head sold—not enough for a market trend.
On the formula side, 26,300 head averaging 942 lbs. sold for an average of $381.73.
The national weekly direct beef type price distribution for the week of Oct. 27 to Nov. 3 was the following on a live basis:
• Negotiated purchases: $230.90.
• Formula net purchases: $241.67.
• Forward contract net purchases: $206.47.
• Negotiated grid net purchases: $245.86.
On a dressed basis:
• Negotiated purchases: $358.82.
• Formula net purchases: $380.39.
• Forward contract net purchases: $330.87.
• Negotiated grid net purchases: $371.40.
Today’s slaughter is estimated to be 118,000 head, 1,000 head below a week earlier.
Boxed beef prices were mixed on 167 loads, with the Choice cutout $1.67 lower to $377.58 and the Select cutout up $1.32 to $361.25.
Feeder cattle
Feeder cattle futures also closed lower, with the November contract $7.60 lower to close at $334.97 and the January contract down $7.30 to $329.22.
“The feeder cattle complex is taking the morning’s rumors with the biggest hit as the market has successfully seen prices never reached before, largely because of limited supplies and excellent demand,” Stewart wrote. “Cattle producers and traders alike both know that allowing for Mexican cattle imports won’t completely end the market’s rally and historical prices, but the degree to which it will affect prices is unknown, and that’s what scares the market.”
The CME Feeder Cattle Index was $3.92 lower to 343.33.
Corn futures were lower, with the December and March contracts down 2 cents to $4.31 and $4.44, respectively.
Iowa: Russell Livestock in Russell sold 2,582 head on Monday. Compared to the last auction two weeks ago, steers under 600 lbs. sold $3-9 lower, while heavier steers sold sharply lower. Heifers also sold sharply lower. Benchmark steers averaging 707 lbs. sold for $335-355, averaging $346.84.
New Mexico: Roswell Livestock in Roswell sold 1,538 head on Tuesday. Compared to the previous auction, steer calves and steer yearlings sold steady to $10 lower. Heifer calves 300-500 lbs. were steady to $3 higher, 500-600 lbs sold $6 lower, while 600-700 lbs feeder heifers were $15 higher. Benchmark steers averaging 714 lbs. sold for $317-320 and averaged $319.09.
Texas: Giddings Livestock in Giddings sold 841 head on Tuesday. Compared to the previous auction, feeder steers were $15-20 higher. Feeder heifers were $10-20 higher. A group of steers averaging 723 lbs. sold for $313-333 and averaged $320.49. — Charles Wallace, WLJ contributing editor
