Tuesday markets
It was a turnaround Taco Tuesday, with cattle futures closing higher following the executive order allowing the use of red-dyed diesel for on-road use.
“More than anything else the excitement in the marketplace likely stems from President Trump’s announcement that he’s going to sign an executive order to officially waive the off-road requirement and allow anyone to purchase tax-free, red-dyed diesel,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments. “With fuel costs on the forefront of everyone’s mind, and especially those involved in agriculture, the announcement brings some market excitement.”
Live cattle futures closed higher, with the October contract up $3.97 to $221.22 and the December contract $4.12 to $224.10.
Cash trade was light, with 139 head sold—not enough for a market trend. On the formula side, 27,900 head averaging 959 lbs. sold for an average of $359.54.
The national weekly direct beef type price distribution for the week of Sept. 28 to Oct. 5 was the following on a live basis:
• Negotiated purchases: $221.41.
• Formula net purchases: $227.63.
• Forward contract net purchases: $230.11.
• Negotiated grid net purchases: $232.95.
On a dressed basis:
• Negotiated purchases: $346.27.
• Formula net purchases: $358.73.
• Forward contract net purchases: $376.63.
• Negotiated grid net purchases: $352.50.
Today’s slaughter is estimated to be 110,000 head, 2,000 head above last week.
Boxed beef prices closed mixed on 125 loads, with the Choice cutout up 67 cents to $378.93 and the Select cutout down $2.23 to $356.34.
Feeder cattle
Feeder cattle futures also closed higher, with the October contract up $6.65 to $340.50 and the November contract $8.15 higher to $338.27.
“Currently the spot November contract is trading above its 100-day moving average. It will be interesting to see if the complex can hold above that threshold ahead of the day’s close,” Stewart wrote.
The CME Feeder Cattle Index was up 92 cents to $337.76.
Corn futures closed higher, with the December and March contracts up 10 cents to $5.08 and $5.22, respectively.
New Mexico: Roswell Livestock in Roswell sold 672 head on Tuesday. Compared to the last auction, steer calves had no comparable numbers, but a steady to higher market was evident. Feeder steers 600-700 lbs. sold $12-20 higher. Heifer calves 350-500 lbs. sold $15-25 higher and 500-550 lbs. traded $2 lower. Feeder heifers sold steady to lower. A group of benchmark steers averaging 760 lbs. sold for $258.
Texas: Giddings Livestock in Giddings sold 703 head on Monday. Compared to the last auction, feeder steers under 500 lbs. sold $12-20 higher and over 500 lbs. traded $6-10 higher. Feeder heifers under 500 lbs. sold $5-15 higher and over 500 lbs. traded $3-8 higher. Benchmark steers averaging 709 lbs. sold for $326-333, averaging $329.80. — Charles Wallace, WLJ contributing editor
