Tuesday markets
Cattle futures ended mixed today, with live cattle easing on corrective selling while feeder cattle extended Monday’s rally.
“One thing different about this rally is that the market has begun to price further cattle supply shortages in 2026 by adding a premium to the 2026 contracts,” Cassie Fish, market analyst, wrote in The Beef. “So far, no contract months have made new contract highs and only Dec, Feb and Apr LC are carrying modest premiums to last week’s 5-area average of $237.51, but the bear spreads are definitely working.”
Live cattle futures had a volatile day, with the October contract down $1.55 to close at $235.60 and the December contract $1.47 lower to $238.75.
Cash trade was light, with 347 head sold—not enough for a trend.
On the formula side, 26,600 head averaging 938 lbs. sold for an average of $386.67.
“In the meantime, the spot physical side of the market is still in the process of bottoming,” Fish continued. “Last week’s negotiated fed cattle prices were lower for the fourth consecutive week and the lowest value since mid-July, when the 5-area average made a low of $237.78/cwt. Last week’s average was $237.51. This is just below the June cash high of $238.58, so it could be argued that this is a decent area of long-term support.”
The national weekly direct beef type price distribution for the week of Sept. 15-22 was the following on a live basis:
• Negotiated purchases: $237.57.
• Formula net purchases: $244.29.
• Forward contract net purchases: $199.88.
• Negotiated grid net purchases: $251.39.
On a dressed basis:
• Negotiated purchases: $371.16.
• Formula net purchases: $385.70.
• Forward contract net purchases: $333.58.
• Negotiated grid net purchases: $388.51.
Today’s slaughter is estimated to be 121,000 head, the same as the previous week.
Boxed beef prices were lower on 120 loads, with the Choice cutout down 59 cents to $380.80 and the Select cutout $2.19 lower to $359.90.
Feeder cattle
Feeder cattle futures closed in the green, with the September contract $2.12 higher, closing at $364.85 and the October contract up 77 cents to $361.12.
The CME Feeder Cattle Index was $1.85 lower to $358.78.
Corn futures were higher, with the December and March contracts up 4 cents to $4.26 and $4.43, respectively.
Iowa: Russell Livestock in Russell sold 2,528 head on Monday. Compared to the previous auction two weeks ago, most lots of steers sold $7-10 higher. Bawling heifers under 500 lbs. sold with lower undertones on a limited supply. Heifers over 500 lbs. sold steady to $5 higher. Benchmark steers averaging 777 lbs. sold for $365-389, averaging $384.74.
Nebraska: Tri-State Livestock in McCook sold 2,039 head on Monday. Compared to the previous auction, steers 400-500 lbs. sold $2-10 lower and 500-600 lbs. were $2-10 higher. Heifers sold $10-20 higher, except 550-650 lbs. were $4-8 lower. A group of steers averaging 645 lbs. sold for $428.
Texas: Giddings Livestock in Giddings sold 1,331 head on Monday. Compared to the last auction, feeder steers sold $6-10 lower. Feeder heifers sold $8-12 lower. Benchmark steers averaging 725 lbs. sold for $322-345, averaging $328.03. — Charles Wallace, WLJ contributing editor
