Tuesday markets
The livestock complex ended the day lower as traders remained cautious, with cash cattle bids emerging but little additional trade following yesterday’s activity.
Live cattle futures closed slightly lower, with the October contract $1.32 lower to close at $227.50 and the December contract down 60 cents to $226.57.
“Yesterday’s sell-off was shocking to most and has left most in the industry on edge and dismayed. Confidence has been shattered,” Cassie Fish, market analyst, wrote in The Beef.
Cash trade was light, with 2,826 head sold. Live steers sold for $230, and dressed steers sold for $360.
On the formula side, 32,400 head averaging 934 lbs. sold for an average of $383.99.
The national weekly direct beef type price distribution for the week of Oct. 20-27 was the following on a live basis:
• Negotiated purchases: $238.02.
• Formula net purchases: $241.29.
• Forward contract net purchases: $213.33.
• Negotiated grid net purchases: $246.54.
On a dressed basis:
• Negotiated purchases: $369.36.
• Formula net purchases: $377.38.
• Forward contract net purchases: $323.87.
• Negotiated grid net purchases: $369.32.
Today’s slaughter is estimated to be 119,000 head, 2,000 head above a week earlier.
Boxed beef prices were mixed on 123 loads, with the Choice cutout $1.77 higher to $379.65 and the Select cutout $1.66 lower to $360.
“Packer margins will improve this week, but this week’s harvest is anticipated to be smaller than the last two weeks at around 560k head,” Fish wrote.
Feeder cattle
Feeder Cattle futures closed sharply lower, with the October contract $1.40 lower to close at $344.10 and the November contract down $5.05 to $333.40. Deferred contracts closed $9-12 lower.
“Feeder cattle futures, on the other hand, continue to struggle mightily today, making new lows for the move again, led lower by the 2026 contracts,” Fish wrote. “Cash feeder cattle sales yesterday were astonishingly lower, down $25/cwt to $40/cwt, depending on sex and weight class.”
The CME Feeder Cattle index was 47 cents higher to $367.55.
Corn futures were higher, with the December contract 3 cents higher to $4.32 and the March contract up a penny to close at $4.46.
Texas: Giddings Livestock in Giddings sold 686 head on Monday. Compared to the previous auction, feeder steers were down $20-30, and feeder heifers were $12-20 lower. A group of steers averaging 716 lbs. sold for $300-305 and averaged $300.72. — Charles Wallace, WLJ contributing editor
