Tuesday markets
Cattle futures eased today, giving back a modest slice of Monday’s big rally as bulls failed to sustain buying strength.
“The market seems to be at odds with itself as traders know that the long-term fundamentals of the market are strong, but at the same time, it’s fully expected that boxed beef prices will continue to wane in the upcoming weeks and that fed cash cattle prices could trade lower as well until holiday demand sees retailers more aggressive again,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments. “Which is why traders would like to support the complex but are having a difficult time doing so confidently.”
Live cattle futures traded lower, with the October contract $1.15 lower to $233.45 and the December contract down $1.12 to close at $235.15.
Cash trade was very light, with just 179 head sold for $240.
On the formula side, 36,300 head averaging 926 lbs. sold for an average of $389.57.
The national weekly direct beef type price distribution for the week of Sept. 8-15 was the following on a live basis:
• Negotiated purchases: $239.60.
• Formula net purchases: $246.68.
• Forward contract net purchases: $202.14.
• Negotiated grid net purchases: $251.98.
On a dressed basis:
• Negotiated purchases: $376.88.
• Formula net purchases: $387.49.
• Forward contract net purchases: $319.81.
• Negotiated grid net purchases: $386.26.
Today’s slaughter is estimated to be 121,000 head, 3,000 head above the previous week.
Boxed beef prices were lower on 166 loads, with the Choice cutout down $5.91 to $392.62 and the Select cutout $5.63 lower to $373.17.
Feeder cattle
Feeder cattle also closed slightly lower, with the September contract 47 cents to close at $358.32 and the October contract down 20 cents to $354.30.
The CME Feeder Cattle Index was 93 cents lower to $362.15.
Corn futures closed higher, with the December and March contracts up 6 cents to $4.29 and $4.47, respectively.
“One notable trend that’s surfacing in sales across the countryside is that now, with the fall run fully underway, calves that are either unvaccinated or unweaned are trading notably lower than those that have been,” Stewart wrote. “And with buyers already paying substantially more for calves this year than in years past, it’s easy to understand why they can’t afford to take much of a risk on those cattle when their initial input price is so high.”
Nebraska: Tri-State Livestock in McCook sold 1,663 head on Monday. Compared to the previous auction, steers under 600 lbs. sold $10-20 higher and over 600 lbs. were $9-12 lower. Heifers under 700 lbs. sold steady to $11 higher and over 700 lbs. were $2-9 lower. Benchmark steers averaging 741 lbs. sold for $378-389 and averaged $386.21.
Texas: Giddings Livestock in Giddings sold 1,446 head on Monday. Compared to the last auction, feeder steers sold $2-6 lower. Feeder heifers were down $2-4. A group of steers averaging 711 lbs. sold between $335-360 and averaged $340.08. — Charles Wallace, WLJ contributing editor
