Tuesday markets
Cattle futures extended yesterday’s gains as news of another New World screwworm case in Mexico fueled expectations that the U.S.–Mexico border will stay closed to feeder cattle imports.
“Today’s CME cattle futures market added to yesterday’s gains, even though it has traded both sides of steady a few times,” Cassie Fish, market analyst, wrote in The Beef. “It’s not a runaway to be sure, but the action is overall positive.”
Live cattle futures closed triple digits higher, with the October contract up $1.22 to $233.10 and the December contract up $1.05 to $237.72.
Cash trade was light, with 333 head sold for $230.
On the formula side, 31,000 head averaging 937 lbs. sold for an average of $376.26.
Today’s slaughter is estimated to be 116,000 head, 4,000 head lower than the previous week.
“It is worth noting as well that today midday boxed beef prices are higher again, which could be beginning to signal that seasonal boxed beef demand is improving,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments. “Still, no developments have surfaced in the fed cash cattle market, and trade will likely be delayed until sometime after Wednesday.
Boxed beef prices were higher on 181 loads, with the Choice cutout $2.63 higher to $365.97 and the Select cutout 91 cents higher to $348.88.
Feeder cattle
Feeder cattle futures were the leader, with the October contract up $3.10 to $365.50 and the November contract up $3.45 to $364.25.
“Feeder cattle futures are the real leaders, taking out the September highs today, November feeders over $14/cwt off of last week’s low,” Fish wrote. “Of course, confirmation of another New World Screwworm case in Mexico yesterday didn’t hurt, as it reinforces the likelihood the Mexican/U.S. border will not reopen this fall to allow feeder cattle imports.”
The CME Feeder Cattle Index was $2.76 higher to close at $365.33.
Corn futures closed lower, with the December and March contracts 2 cents lower to $4.19 and $4.36, respectively.
Iowa: Russell Livestock in Russell sold 1,966 head on Monday. Compared to the previous auction two weeks ago, steers under 600 lbs. sold mostly $5-24 higher, while those over 600 lbs. sold $2-10 lower. Heifers mostly sold $10-17 lower. Benchmark steers averaging 786 lbs. sold for $364-387 and averaged $374.89.
New Mexico: Roswell Livestock in Roswell sold 1,141 head on Tuesday. Compared to the previous auction, steer calves 300-500 lbs. sold $8-19 lower and 500-600 lbs. were steady to $7 higher. Feeder steers 600-650 lbs. sold $4 lower, while 700-750 lbs. were $1 higher. Heifer calves 300-400 lbs. sold $10-18 lower, 400-500 lbs. were steady to $10 lower and 500-600 lbs. traded steady to $7 higher. Heifer yearlings 650-700 lbs. sold $14 higher. Benchmark steers averaging 711 lbs. sold for $357. — Charles Wallace, WLJ contributing editor
