Tuesday markets
The livestock complex closed mixed as traders were cautiously looking for fundamental support. Cash trade is expected to occur in the second half of the week.
Live cattle closed mixed, with the October contract up 7 cents to $151.67 and the December contract down 82 cents to $153.30.
“With the live cattle market rallying to new contract highs Monday, come Tuesday, the live cattle market has grown cold and somewhat leery of trading any higher as traders need to see more fundamental support before pushing the contracts any higher,” ShayLe Stewart, DTN livestock analyst, wrote in the midday comments.
Cash trade was nonexistent, with only 208 sold—not enough for a market trend.
On the formula side, 29,200 head averaging 878 lbs. sold for 234.48.
“Smaller show lists in all regions and runaway box prices will provide the backdrop for high cash prices this week,” the Cattle Report wrote. “This past week reported improvement in both sales prices and slaughter volumes. Seasonal demand for beef appears to be developing and both packers and retailers will look for a continuation between now and year-end. Little to no cash trade was reported in the marketplace, and bid/ask spreads will stay wide until mid to late week.”
The national weekly direct beef type price distribution for the week of Oct. 17-24 was the following on a live basis:
• Negotiated purchases: $150.01.
• Formula net purchases: $148.87.
• Forward contract net purchases: $150.14.
• Negotiated grid net purchases: $148.60.
On a dressed basis:
• Negotiated purchases: $235.28.
• Formula net purchases: $235.24.
• Forward contract net purchases: $228.50.
• Negotiated grid net purchases: $231.88.
Slaughter for today is expected to be 129,000 head, 1,000 head above last week.
Boxed beef closed higher on 149 loads, with the Choice cutout up $3.51 to $261.43 and the Select cutout up $1.74 to $227.35.
“Box prices were active this past week and early this week as the seasonal demand for beef supports higher prices,” the Cattle Report wrote. “Retailers sense the shortened supplies of cattle to come and are competing to add inventory. Frozen beef stocks are high, as well as inventories of fresh suspended beef. Those reserve sources provide a buffer to retailers attempting to diminish sharp price increases from the processors.”
Feeder cattle
Feeder cattle also closed mixed, with the October contract up 92 cents to $176.60 and the November contract down $1.22 to $177.92. The CME Feeder Cattle Index was up $1.23 to $174.85.
Corn contracts closed higher, with the December and March contracts up 4 cents to $6.86 and $6.92, respectively.
Nebraska: Tri-State Livestock in McCook sold 2,000 head Monday. Compared to the last auction, steers were $1-8 higher and heifers were $1-6 higher. A group of steers averaging 631 lbs. sold between $188-193 and averaged $190.67.
South Dakota:Sioux Falls Regional Cattle Auction sold 5,148 head Monday. Compared to the last auction, steers and heifers of similar weights were unavailable, so a comparison could not be made. Benchmark steers averaging 778 lbs. sold between $176-188, averaging $185.24. —Charles Wallace, WLJ editor
