Tuesday markets
“After two impressive up days, CME cattle futures are putting in a modest red day with what looks like diminished activity,” Cassie Fish, market analyst for The Beef, wrote. “Equities are having a huge up day, so perhaps cattle futures have divorced themselves from outside markets for now.”
Live cattle closed slightly lower, with the October contract down 12 cents to $144.20 and the December contract down 52 cents to $147.50.
Cash trade was nonexistent for the second day, with only 652 head sold. Asking prices were $145 in the South, and the North had yet to be established.
On the formula side, 23,700 head averaging 885 lbs. sold for $231.77.
Slaughter for the day is expected to be 128,000 head, the same as last week.
Boxed beef prices were higher on 99 loads, with the Choice cutout up $2.10 to $248.04 and the Select cutout up 60 cents to $221.91.
“Activity in the country is very slow,” Fish said. “Net packer margins slipped under $100 per head for the first time since Q1 2020 last week. Boxed beef values are expected to bottom this week and begin a seasonal increase, but no doubt packers are eying cattle costs, throughput and margin management in a way they haven’t had to in a very long time.”
Feeder cattle
Feeder cattle closed lower, with the October contract down 87 cents to $174.65 and the November contract down 85 cents to $175.20. The CME Feeder Cattle Index was up 23 cents to $175.67.
“The feeder cattle market started the day out stronger but as the corn complex grows stronger too, it’s now heading into Tuesday’s afternoon lower,” ShayLe Stewart, DTN livestock analyst, wrote in the midday comments. “What’s encouraging at this point, however, is that, even though the feeder cattle market is trading lower, it’s not pressuring Monday’s lower trading range.”
Corn closed modestly higher, with the December and March contracts up 2 cents to $6.83 and $6.90, respectively.
Nebraska: Tri-State Livestock in McCook sold 1,370 head Monday. There were not enough sales for a market comparison. A group of steers averaging 622 lbs. sold between $186-195.25, averaging $189.52.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 2,845 head Monday. Compared to the last auction, there were limited price comparisons, as there were few steers and heifers with similar weights to the last sale. Feeder steers 600-650 lbs. sold steady to $2 lower, 700-750 lbs. and 900-950 lbs. were steady to $1 higher, and other weights were not well compared. Feeder heifers 700-800 lbs. sold steady to $3 lower, with other weights not well compared. Benchmark steers averaging 768 lbs. sold between $174.50-187.25 and averaged $180.48. — Charles Wallace, WLJ editor
