Tuesday markets
Traders’ favorable reaction to the Cattle on Feed report was short-lived as futures closed lower on profit-taking.
Live cattle futures closed lower, with the October contract down $2.17 to $218.77 and the December contract $2.55 lower to $219.45.
Cash trade was light, with 108 head sold—not enough for a market trend. On the formula side, 25,000 head averaging 952 lbs. sold for an average of $359.94.
The national weekly direct beef type price distribution for the week of Sept. 14-21 was the following on a live basis:
• Negotiated purchases: $222.46.
• Formula net purchases: $227.13.
• Forward contract net purchases: $227.48.
• Negotiated grid net purchases: $233.55.
On a dressed basis:
• Negotiated purchases: $350.14.
• Formula net purchases: $357.40.
• Forward contract net purchases: $375.11.
• Negotiated grid net purchases: $352.28.
Today’s slaughter is estimated to be 105,000 head, 3,000 head below last week.
Boxed beef prices were higher on 106 loads, with the Choice cutout up $2.54 to $378.89 and the Select cutout $2.08 higher to $357.85.
Feeder cattle
Feeder cattle futures also closed lower, with the September contract down 20 cents to $337.27 and the October contract $2.22 lower to $328.02.
The CME Feeder Cattle Index was down $3.05 to $339.45.
Corn futures closed lower, with the December contract down 6 cents to $5.36 and the March contract 5 cents lower to $5.51.
New Mexico: Roswell Livestock in Roswell sold 871 head on Monday. Compared to the previous auction, steer calves sold steady to $12 higher, except 450-500 lbs. were lower. Feeder steers sold $10 higher. Heifer calves and feeder calves sold unevenly. Benchmark steers averaging 712 lbs. sold for $311-320, averaging $311.17.
Texas: Giddings Livestock in Giddings sold 1,088 head on Monday. Compared to the last auction, feeder steers sold $10-15 higher. Feeder heifers sold $3-8 higher. Benchmark steers averaging 712 lbs. sold from $328-350, averaging $335.43. — Charles Wallace, WLJ contributing editor
