Tuesday markets
The cattle complex traded mostly sideways despite corn closing lower, as traders were cautious due to the midterm elections.
Live cattle closed mostly sideways, with the December contract unchanged at $153.05 and the February contract down 25 cents to $154.77.
Cash trade had yet to develop, with 1,644 head sold—not enough for a market trend. Dressed steers sold for $240.
“The cash cattle market hasn’t seen any interest develop yet and it’s likely again this week that trade won’t develop until late Wednesday or Thursday,” ShayLe Stewart, DTN livestock analyst, wrote in the midday comments. “Asking prices in the South are noted at $152, but are still undeveloped in the North.”
On the formula side, 25,200 head averaging 883 lbs. sold for $244.50.
The national weekly direct beef type price distribution for the week of Oct. 31 to Nov. 7 was the following on a live basis:
• Negotiated purchases: $152.12.
• Formula net purchases: $152.85.
• Forward contract net purchases: $149.97.
• Negotiated grid net purchases: $151.75.
On a dressed basis:
• Negotiated purchases: $241.75.
• Formula net purchases: $242.55.
• Forward contract net purchases: $231.69.
• Negotiated grid net purchases: $236.90.
Slaughter for today is expected to be 129,000 head, 1,000 head above last week.
Boxed beef prices closed slightly higher on 151 loads, with the Choice cutout up 39 cents to $264.94 and the Select cutout up 13 cents to $236.05.
Feeder cattle
Feeder cattle closed mixed, with the November contract up 5 cents to $178.27 and the January contract down 2 cents to $179.90. The CME Feeder Cattle Index was down 32 cents to $176.59.
Corn closed lower, with the December contract down 8 cents to $6.67 and the March contract down 7 cents to $6.73.
“You’d think that, with the corn complex trading as much as $0.05 lower into the day’s afternoon, feeders would be trading higher, but with the midterm elections consuming most of the day’s interest and live cattle trading lower, feeder cattle are again pressuring their 40-day moving average as they drift downward,” Stewart wrote.
Nebraska: Tri-State Livestock in McCook sold 1,323 head Monday. There were not enough sales to show a comparison to last week. A group of steers averaging 795 lbs. sold for $175.50.
New Mexico: Roswell Livestock in Roswell sold 2,323 head Monday. Since there was not a recent auction, a comparison could not be made. A group of steers averaging 715 lbs. sold between $155-169.50 and averaged $164.53.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 3,407 head Monday. Compared to the previous auction, feeder steers sold steady to $4 higher, except 700-800 lbs., which were steady to $2 lower, and 950-1,000 lbs., which traded $6-9 lower. Feeder heifers sold steady to $5 lower. Benchmark steers averaging 779 lbs. sold between $180-187, averaging $182.91. — Charles Wallace, WLJ editor
