Tuesday markets
Cattle futures closed lower, giving back some recent gains as traders had little new fundamental news.
“There’s little fundamental guidance as of yet this week, with bids for fed cattle in the negotiated market pretty much nonexistent,” wrote Cassie Fish, market analyst, in The Beef. “Boxed beef prices, on the other hand, won’t give up the fight and printed higher at midday today, led by a big pop in the rib primal.”
Live cattle futures closed lower, with the October contract down $1.55 to $220.70 and the December contract $1.80 lower to $223.35.
Cash trade was nonexistent, with only 71 head sold. On the formula side, 22,500 head averaging 952 lbs. sold for an average of $355.41.
“Last week’s higher negotiated fed cattle price was the first uptick in four consecutive weeks,” Fish wrote. “With more market-ready fed cattle supplies available, the larger question is whether cash prices have bottomed for the fall already or is more downside yet to come. Obviously the pickup in slaughter, inspired by black ink, is absorbing some of the larger supply. Expectations for this week’s cash trade range from steady to as much as $2/cwt higher.”
The national weekly direct beef type price distribution for the week of Sept. 7-14 was the following on a live basis:
• Negotiated purchases: $223.39.
• Formula net purchases: $225.19.
• Forward contract net purchases: $231.88.
• Negotiated grid net purchases: $234.21.
On a dressed basis:
• Negotiated purchases: $350.45.
• Formula net purchases: $354.18.
• Forward contract net purchases: $376.21.
• Negotiated grid net purchases: $358.55.
Today’s slaughter is estimated to be 108,000 head, 1,000 head below last week.
Boxed beef prices were higher on 101 loads, with the Choice cutout up 77 cents to $376.08 and the Select cutout $1.81 higher to $356.36.
Feeder cattle
Feeder cattle futures also closed lower, with the September contract down $3.30 to $340.27 and the October contract $4 lower to $333.85.
The CME Feeder Cattle Index gained $10.49 to close at $341.71.
Corn futures closed higher, with the December and March contracts up 2 cents to $5.35 and $5.50.
Iowa: Russell Livestock in Russell sold 3,476 head on Monday. Compared to the auction two weeks ago, steers mostly sold $5-19 higher. Steers under 500 lbs. sold sharply higher, although not well compared. Heifers sold mostly $3-11 higher. Benchmark steers averaging 771 lbs. sold for $341-369.50, averaging $364.55. — Charles Wallace, WLJ contributing editor
