Tuesday markets
Cattle futures are rebounding this week, clawing back ground after last Friday’s steep market plunge.
Live cattle futures continued to take back Friday’s losses, with the October contract $1.82 higher to close at $243.67 and the December contract up $1.77 to $245.42.
“The market continues to recover some of the position lost last Friday as traders believe that the market’s fundamentals will continue to support the market’s bullish underpinning,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments. “Still, no developments have occurred in the fed cash cattle market, and trade will likely be delayed until the second half of the week.”
Cash trade was light, with 221 head sold—not enough for a market trend.
On the formula side, 20,500 head averaging 935 lbs. sold for an average of $375.97.
The national weekly direct beef type price distribution for the week of Oct. 13-20 was the following on a live basis:
• Negotiated purchases: $239.80.
• Formula net purchases: $237.25.
• Forward contract net purchases: $207.86.
• Negotiated grid net purchases: $242.79.
On a dressed basis:
• Negotiated purchases: $372.44.
• Formula net purchases: $372.13.
• Forward contract net purchases: $319.53.
• Negotiated grid net purchases: $370.79.
Today’s slaughter is estimated to be 117,000 head, 3,000 head below a week earlier.
Boxed beef prices were mixed on 128 loads, with the Choice cutout up $2.75 to $371.93 and the Select cutout 89 cents lower to $352.57.
“Packers bought a boatload of cattle last week, the largest negotiated trade volume since May at 88k head, paying up almost $6/cwt,” Cassie Fish, market analyst, wrote in The Beef. “Packer margins are red and even though boxed beef values are rallying, wholesale beef prices are bringing up the rear. Expectations are for boxes to continue increase in value for the next several weeks, fueled by holiday demand which is focused on fed cattle middle meat cuts—not ground beef.”
Feeder cattle
Feeder cattle futures traded higher during the day but closed mixed, with the October contract 2 cents lower to close at $372.92 and the November contract 80 cents higher to $373.47.
The CME Feeder Cattle Index was 36 cents lower to $376.15.
Corn futures closed lower, with the December and March contracts 3 cents lower to $4.19 and $4.33, respectively.
Iowa: Russell Livestock in Russell sold 1,832 head on Monday. Compared to the previous auction two weeks ago, steers sold mostly steady to $18 lower, while 600-650 lbs. sold $24 higher. Heifers sold mostly $5-26 higher, while 450-500 lbs. heifers sold $6 lower. Benchmark steers averaging 778 lbs. sold for $330-360 and averaged $343.55.
New Mexico: Roswell Livestock in Roswell sold 965 head on Monday. Compared to the last auction, steers and heifer calves sold $10-15 higher. Feeder steers and heifers sold steady to $5 higher. Benchmark steers averaging 713 lbs. sold for $342-350 and averaged $348.38.
South Dakota: Sioux Falls Regional in Worthing sold 5,717 head on Monday. Compared to the previous auction two weeks ago, feeder cattle were too lightly tested to offer a good comparison, but higher undertones were noted. Benchmark steers averaging 791 lbs. sold for $374-375 and averaged $374.29. — Charles Wallace, WLJ contributing editor
