Tuesday markets
Cattle markets closed higher on the grain sell-off. Cash trade was light, but the trade that occurred was at $150 in the western Corn Belt.
Live cattle closed higher, with the October contract up 60 cents to $148.47 and the December contract up 57 cents to $149.77.
“Now that (the) market is seeing more support from boxed beef prices and is likely to see continued support in this week’s cash cattle market, the live cattle contracts sit in a ripe position to rally,” ShayLe Stewart, DTN livestock analyst, wrote in the midday comments.
Cash trade was light, with 1,513 head selling for $150. Trade mainly occurred in the western Corn Belt, and asking prices were around $147-148 in the South.
On the formula side, 23,500 head averaging 876 lbs. sold for $236.02.
The national weekly direct beef type price distribution for the week of Oct. 10-17 was the following on a live basis:
• Negotiated purchases: $147.19.
• Formula net purchases: $147.24.
• Forward contract net purchases: $145.15.
• Negotiated grid net purchases: $146.78.
On a dressed basis:
• Negotiated purchases: $231.51.
• Formula net purchases: $234.02.
• Forward contract net purchases: $227.65.
• Negotiated grid net purchases: $231.33.
Slaughter for today is expected to be 128,000 head, the same as last week.
Boxed beef closed higher on 135 loads, with the Choice cutout up $2.64 to $250.78 and the Select cutout up $1.67 to $221.28.
Analysts released their pre-report estimates ahead of Friday’s upcoming Cattle on Feed report. Analysts pegged the Oct. 1 on-feed range to be 98.2-99.6% of last year. Placements in September are estimated at 91.8-99%, and marketing from feedlots are estimated at 103.8-104.2%.
“Consensus developed on a strong marketings number over the same number of days as last year putting daily average slaughter up about 3,000 head per day ahead of last year,” the Daily Livestock Report wrote. “Slaughter-ready cattle imported from Canada was very close to 2021 for the month, indicating marketings are likely to be similar to slaughter levels seen in September.”
Feeder cattle
Feeder cattle closed higher due to the sell-off in the corn market. The October feeder cattle contract was up 7 cents to $174.82, and the November contract was up $1.42 to $177.82. The CME Feeder Cattle Index was down 81 cents to $172.27.
“The market’s support is two-fold as not only are grain prices slightly lower, but the live cattle market is lending ample support as it also trades higher into the afternoon, and again this week cash cattle prices are likely to trade higher, all of which helps strengthen the feeder complex,” Stewart wrote. “It’s unlikely that feeder cattle prices see a major jump in sales this week as buyers need to see stronger prices for fat cattle in 2023 to help justify feeding close to $7.00 per bushel corn.”
USDA reported in its weekly Crop Progress report that 45% of corn was harvested as of Oct. 16, up 14 percentage points from the previous week.
Corn closed lower, with the December and March contracts down 2 cents to $6.81 and $6.87, respectively.
Nebraska: Tri-State Livestock in McCook sold 1,585 head Monday. Compared to the last auction, steers 450-550 lbs. sold $3-12 lower, and heifers were $5-9 lower on 400 lb. and 500 lb. weights. A group of steers averaging 794 lbs. sold for $177.50.
New Mexico: Roswell Livestock in Roswell sold 1,110 head Monday. There was no accurate comparison, as the last auction was a month ago. A group of steers averaging 824 lbs. sold between $149-158 and averaged $155.27.
South Dakota: Sioux Falls Regional Livestock in Worthing sold 779 head Monday. There was a limited price comparison this week due to the light offering. A lot of steers averaging 776 lbs. sold between $180-181, averaging $180.84. — Charles Wallace, WLJ editor
