Tuesday markets
The livestock complex is trading mixed into Tuesday’s afternoon as the cattle complex celebrates the slightly lower trend that’s taking place in the corn market Tuesday. The cash cattle market hasn’t seen any action develop yet, and given that feedlots are likely to price cattle higher, sizable trade deals aren’t expected to develop until Wednesday or later.
Given the recent pressure that has mounted above the live cattle market (a weakened economy, increasing tensions from war reports between Russia/Ukraine and a finicky corn market), the cattle complex is going to need its fundamentals to lead the futures complex higher if higher prices are going to be in its near future.
After the corn market jolted higher throughout Monday’s trade, both the live cattle and feeder cattle contracts are trending modestly higher into Tuesday’s afternoon as corn prices regress. Helping the market trade higher is also the fact that feedlots are anticipated to trade cattle higher again this week, as beef demand has improved from September, and packers are continuing to run aggressive chain speeds. Asking prices of $146 are noted in the South, but asking prices in the North are still elusive. It’s likely that significant trade won’t develop until Wednesday or potentially even Thursday.
October live cattle are up 80 cents at $145.50, December live cattle are up $1.25 at $148.25, and February live cattle are up 85 cents at $151.60.
Boxed beef prices are mixed: Choice is up $2.04 ($246.67), and Select is down 71 cents ($213.11) with a movement of 85 loads.
Feeder cattle
With the corn complex scaling back after Monday’s aggressive push, the feeder cattle contracts are taking back some of the position they lost throughout Monday’s market. October feeder cattle are up $2.07 at $174.17, November feeders are up $2.25 at $175.12 and January feeders are up $1.17 at $175.45.
The market is undoubtedly feeling more confident as corn prices traipse lower but also as the live cattle contracts trade mildly higher, and feedlots are expected to push cash cattle trade higher again this week.
The corn market is pulling back ahead of Wednesday’s World Agricultural Supply and Demand Estimates report. Until that data is unveiled, there’s always a chance that the market could shift and change at any second. — ShayLe Stewart, DTN livestock analyst
