Tuesday markets
Election Day brought a wait-and-see mode for cattle futures, closing mostly sideways.
Live cattle futures were mixed, with the December contract down 30 cents to $184.77 and the February contract up 2 cents to $185.95.
Cash trade was nonexistent, with only 78 head sold.
On the formula side, 23,400 head averaging 921 lbs. sold for an average of $307.96.
The national weekly direct beef type price distribution for the week of Oct. 14-21 was the following on a live basis:
• Negotiated purchases: $189.83.
• Formula net purchases: $194.26.
• Forward contract net purchases: $188.39.
• Negotiated grid net purchases: $194.53.
On a dressed basis:
• Negotiated purchases: $297.48.
• Formula net purchases: $302.38.
• Forward contract net purchases: $298.04.
• Negotiated grid net purchases: $300.
Today’s slaughter is estimated to be 124,000 head, the same as a week earlier.
Boxed beef prices were mixed on 142 loads, with the Choice cutout up 30 cents to $317.21 and the Select cutout down $1.92 to $285.24.
“Thus far, the choice cutout has managed to gain back a little ground this week, though remains well off the recent highs,” Cassie Fish, market analyst, wrote for The Beef. “To be expected, the rib continues to benefit from seasonal demand despite its record high wholesale value for this date. After a year of a lot of red ink, the packers’ intention is to keep their margins in black for as long as possible. Owning a great deal of cattle inventory, 88k purchased last week, the fourth big buy in as many weeks, may limit the upside potential in cash fed cattle prices.”
Feeder cattle
Feeder cattle futures closed modestly lower, with the November contract down 20 cents to $246.15 and the January contract down 7 cents to $242.35. The CME Feeder Cattle Index was down 27 cents to $250.73.
Corn futures were higher, with the December and March contracts up 2 cents to $4.18 and $4.32, respectively.
Nebraska: Tri-State Livestock in McCook sold 1,698 head on Monday. Compared to the previous auction, steers and heifers had a lower undertone, except steers 400-450 lbs., which were $7 higher. A group of steers averaging 947 lbs. sold for $258.50. — Charles Wallace, WLJ contributing editor
