Tuesday markets
Cattle futures closed mostly higher as traders look for direction from cash trade, and cattle imports at the Columbus, NM, port of entry resumed today.
“CME feeder cattle futures did sell off early but are now convincingly higher on the day,” wrote Cassie Fish, market analyst, in The Beef. “October feeders expire Thursday and higher cash feeder sales have pushed the index to $350/cwt. After three consecutive months of record low placements, demand is robust for what physical feeders are being offered for sale. October feeders are trading at $352.90, their highest since early July.”
Live cattle futures closed on both sides of steady, with the October contract up 2 cents to $230 and the December contract down 35 cents to $230.85.
Cash trade was minimal, with 231 head sold for $365. On the formula side, 20,700 head averaging 960 lbs. sold for an average of $363.85.
“Because of last week’s light fed cattle trade volume, Nebraska and Iowa carried unsold cattle over into this week,” Fish wrote. “The packer is hoping to use that fact to their advantage and with the slaughter slowdown, halt the fed cattle price advance in the North.”
The national weekly direct beef type price distribution for the week of Oct. 19-26 was the following on a live basis:
• Negotiated purchases: $228.03.
• Formula net purchases: $229.24.
• Forward contract net purchases: $233.61.
• Negotiated grid net purchases: $235.04.
On a dressed basis:
• Negotiated purchases: $359.40.
• Formula net purchases: $360.82.
• Forward contract net purchases: $371.82.
• Negotiated grid net purchases: $350.62.
Today’s slaughter is estimated to be 110,000 head, 2,000 head below last week.
Boxed beef prices closed higher on 120 loads, with the Choice cutout up $2.78 to $372.22 and the Select cutout $1.29 higher to $358.85.
Feeder cattle
Feeder cattle futures closed higher, with the October contract up $2.90 to $352.80 and the November contract $1.47 lower to $350.02.
The CME Feeder Cattle Index was up $3.46 to $348.55.
Corn futures closed lower, with the December and March contracts down 6 cents to $4.48 and $4.62, respectively.
New Mexico: Roswell Livestock in Roswell sold 1,387 head on Tuesday. Compared to the last auction, steer calves 300-500 lbs. sold $12-25 higher and 500-600 lbs. were $2-10 lower. Feeder steers 600-700 lbs. sold $12-17 higher. Heifer calves 350-450 lbs. were higher, with 450-500 lbs. being $8-10 lower and 500-600 lbs. selling steady. Feeder heifers were unsteady on small numbers. Benchmark steers averaging 726 lbs. sold for $322-324, averaging $323.07.
South Dakota: Sioux Falls Regional in Worthing sold 5,174 head on Monday. Compared to the previous auction, yearling feeder steers sold steady to firm, and yearling feeder heifers sold steady to $3 higher, with instances of $8-10 higher on lighter-fleshed heifers. This was the first good test for steer and heifer calves; no good comparisons available. Benchmark steers averaging 772 lbs. sold for $341-372, averaging $355.49.
Texas: Giddings Livestock in Giddings sold 1,093 head on Monday. Compared to the last auction, feeder steers and heifers were fully steady. High demand for the fancy replacement heifers. Benchmark steers averaging 711 lbs. sold for $320-330, averaging $321.97. — Charles Wallace, WLJ contributing editor
