Tuesday markets
Cattle futures closed slightly lower as traders remained cautious, with no direction from the cash cattle market.
Live cattle futures closed slightly lower, with the October contract down 12 cents to $224.62 and the December contract 22 cents lower to $226.37.
“And without robust support from traders, and with no cash cattle trade having developed yet this week, the live cattle contracts are trading lower into Tuesday’s noon hour,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments.
Cash trade was nonexistent, with only 70 head sold. On the formula side, 25,600 head averaging 958 lbs. sold for an average of $358.42.
“Feedlot managers have been able to regain some moderate leverage in recent weeks, and it’s likely again that this week’s trade will be delayed until the later half of the week as feedlot managers hope to hold the market steady at least,” Stewart wrote.
The national weekly direct beef type price distribution for the week of Oct. 5-12 was the following on a live basis:
• Negotiated purchases: $221.20.
• Formula net purchases: $227.29.
• Forward contract net purchases: $234.10.
• Negotiated grid net purchases: $231.65.
On a dressed basis:
• Negotiated purchases: $345.61.
• Formula net purchases: $359.03.
• Forward contract net purchases: $373.03.
• Negotiated grid net purchases: $351.80.
Today’s slaughter is estimated to be 110,000 head, the same as last week.
Boxed beef prices closed lower on 117 loads, with the Choice cutout down 41 cents to $375.15 and the Select cutout 46 cents lower to $353.67.
Feeder cattle
Feeder cattle futures also closed slightly lower, with the October contract down 40 cents to $343.07 and the November contract 7 cents lower to $341.02.
The CME Feeder Cattle Index was up $1.55 to $338.62.
Corn futures closed lower, with the December and March contracts down a fraction to $4.82 and $4.96, respectively.
Iowa: Russell Livestock in Russell sold 1,955 head on Monday. Compared to the previous auction, steers under 600 lbs. sold even to $9 lower, while 600-650 lbs. and 750-850 lbs. sold $13-19 higher, and all others sold lower. Heifers under 700 lbs. sold mostly $6 higher, with some selling sharply higher, and heifers over 700 lbs. sold $8-26 higher. Benchmark steers averaging 772 lbs. sold for $345.75-366, averaging $354.03.
New Mexico: Roswell Livestock in Roswell sold 1,125 head on Monday. Compared to the last auction, steer calves 400-450 lbs. and 500-550 lbs. sold $10-16 higher and 450-500 lbs. were $16 lower. Feeder steers 600-650 lbs. sold $8 lower, and 650-700 lbs. were $5 higher. Heifer calves 300-350 lbs. sold $20 higher, while 350-400 lbs. were $5 lower and 400-600 lbs. sold $7-20 higher. Feeder heifers 600-650 lbs. sold $10 higher. Benchmark steers averaging 725 lbs. sold for $309-329, averaging $313.97.
Texas: Giddings Livestock in Giddings sold 1,317 head on Monday. Compared to the previous auction, feeder steers under 400 lbs. sold $10-12 lower and over 400 lbs. sold $6-10 lower. Feeder heifers under 400 lbs. sold $10-15 lower and over 400 lbs. sold $6-10 lower. Benchmark steers averaging 715 lbs. sold for $320-340, averaging $322.90. — Charles Wallace, WLJ contributing editor
Beginning today, WLJ will feature hay prices from Haywire as part of its Tuesday daily market report. The chart below shows the price of alfalfa hay in the West during the week of Oct. 5.
