Tuesday markets
Cattle futures continued their rally on optimism that cash trade will remain robust.
“The cattle complex continues to trade higher as traders remain hopeful that even though there’s a Cattle on Feed report set to be released on Friday, fundamental support will still prevail through this week’s fed cash cattle market,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments.
Live cattle futures closed higher, with the October contract up $1.95 to $229.45 and the December contract $2.15 higher to $230.17.
Cash trade was light, with 215 head sold. On the formula side, 25,400 head averaging 976 lbs. Sold for an average of $358.91.
“Last week’s 90k head negotiated fed cattle trade volume was one of the largest of 2026, but with the brisk slaughter pace of late, and more scheduled, packers need to replenish inventory,” wrote Cassie Fish, market analyst, in The Beef. “Big trade volume occurred in the North, Iowa trading 34k head and at higher prices than the prior week, which strongly indicates peak supplies are behind the fed cattle market. Nebraska, which has more formula cattle, still traded 29k in the negotiated market.”
The national weekly direct beef type price distribution for the week of Oct. 12-19 was the following on a live basis:
• Negotiated purchases: $224.65.
• Formula net purchases: $226.99.
• Forward contract net purchases: $230.41.
• Negotiated grid net purchases: $232.79.
On a dressed basis:
• Negotiated purchases: $351.75.
• Formula net purchases: $358.77.
• Forward contract net purchases: $373.81.
• Negotiated grid net purchases: $350.31.
Today’s slaughter is estimated to be 112,000 head, 2,000 head above last week.
Boxed beef prices were higher on 98 loads, with the Choice cutout up $1.72 to $373.30 and the Select cutout $1.63 higher to $361.54.
Feeder cattle
Feeder cattle futures also closed higher, with the October contract up $1.47 to $345.90 and the November contract $2.47 higher to $346.30.
The CME Feeder Cattle Index was down 9 cents to $343.45.
Corn futures closed lower, with the December contract down 5 cents to $4.62 and the March contract 4 cents lower to $4.76.
New Mexico: Roswell Livestock in Roswell sold 815 head on Tuesday. Compared to the last auction, steer calves 400-500 lbs. sold higher, while 300-350 lbs. and 500-600 lbs. were lower. Feeder steers 600-700 lbs. sold lower and 750-800 lbs. sold higher. Heifer calves 300-350 lbs. and 450-550 lbs. sold lower, and 400-450 lbs. and 550-600 lbs. sold higher. Feeder heifers 600-800 lbs. sold steady. Benchmark steers averaging 762 lbs. sold for $310-315, averaging $314.36.
Texas: Giddings Livestock in Giddings sold 1,081 head on Monday. Compared to the last auction, lightweight feeder steers and heifers under 400 lbs. were $5-8 lower. Feeder steers and heifers over 400 lbs. were steady with last week. Strong demand for the fancy replacement heifers. Benchmark steers averaging 709 lbs. sold for $320-330, averaging $326.98. — Charles Wallace, WLJ contributing editor
