Tuesday markets
Cattle market bulls are charging full speed ahead, driving futures to life-of-contract highs.
Live cattle futures finished in the green after a volatile trading day, with the October contract $1.25 higher to close at $241.82 and the December contract $1.75 higher to $246.50.
“Again today, the uptick in the futures complex has pushed most of the nearby contracts to new contract highs,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments. “Still no developments have surfaced in the fed cash cattle market, and it’s likely that with feedlot managers able to push prices higher last week, they’ll again try to advance the market and wait to trade any of their pens until late in the week.”
Cash trade was nonexistent, with 75 head sold—not enough for a market trend.
On the formula side, 23,300 head averaging 956 lbs. sold for an average of $373.86.
The national weekly direct beef type price distribution for the week of Oct. 6-13 was the following on a live basis:
• Negotiated purchases: $234.12.
• Formula net purchases: $237.
• Forward contract net purchases: $204.80.
• Negotiated grid net purchases: $244.61.
On a dressed basis:
• Negotiated purchases: $362.48.
• Formula net purchases: $373.05.
• Forward contract net purchases: $315.51.
• Negotiated grid net purchases: $377.41.
Today’s slaughter is estimated to be 120,000 head, 4,000 head above the previous week.
Boxed beef prices were slightly higher on 145 loads, with the Choice cutout 51 cents higher to $364.42 and the Select cutout up 80 cents to $350.55.
Feeder cattle
Feeder cattle futures gained over $4, with the October contract $4.67 higher to close at $380.17 and the November contract up $44.60 to $381.32.
“With strong equity markets, cheap feed and incredible demand, it’s been almost easy for the feeder cattle market to push the contracts higher as demand continues to be wildly strong,” Stewart wrote.
The CME Feeder Cattle Index was $1.08 higher to $369.
Corn futures closed higher, with the December and March contracts up 2 cents to $4.13 and $4.29, respectively.
New Mexico: Roswell Livestock in Roswell sold 1,162 head on Monday. Compared to the last auction, steer calves 300-350 lbs. sold $20 higher, 350-400 lbs. were $25-30 higher, 400-500 lbs. sold steady to $3 higher, 500-550 lbs. traded $3 higher and 550-600 lbs. sold $3 lower. Feeder steers 600-650 lbs. were $3 lower. Heifer calves 450-500 lbs. sold $10 lower, and 500-600 lbs. were $18-22 higher. Heifer yearlings sold $8 higher. A group of steers averaging 706 lbs. sold for $350-365, averaging $358.92.
Texas: Giddings Livestock in Giddings sold 1,208 head on Monday. Compared to the previous auction, feeder steers and heifers were steady. A group of steers averaging 662 lbs. sold for $330-365, averaging $340.48. — Charles Wallace, WLJ contributing editor
