Tuesday markets
Cattle futures surged, with feeders the leaders and steadier gains in live cattle.
“Feeder cattle futures are leading the rally, boosted by a larger-than-expected ending corn stocks reported by the USDA at 11 a.m. central today,” Cassie Fish, market analyst, wrote in The Beef. “Feeders have already pushed above Monday’s and Friday’s highs, posting an outside day with a very likely higher close. Live cattle futures will probably follow, although they are still weighed down by the seasonally sluggish physical side of the market.”
Live cattle futures were higher, with the October contract up 52 cents to $231.85 and the December contract 95 cents higher to close at $234.77.
Cash trade was light, with 189 head sold—not enough for a market trend.
On the formula side, 31,600 head averaging 943 lbs. sold for an average of $382.69.
The national weekly direct beef type price distribution for the week of Sept. 22-29 was the following on a live basis:
• Negotiated purchases: $233.20.
• Formula net purchases: $242.54.
• Forward contract net purchases: $199.78.
• Negotiated grid net purchases: $249.91.
On a dressed basis:
• Negotiated purchases: $364.96.
• Formula net purchases: $382.95.
• Forward contract net purchases: $330.17.
• Negotiated grid net purchases: $386.97.
Today’s slaughter is estimated to be 120,000 head, 1,000 head below the previous week.
Boxed beef prices were mixed on 122 loads, with the Choice cutout 35 cents higher to $371.03 and the Select cutout lost $1.64 to $347.25.
Feeder cattle
Feeder cattle futures climbed triple digits, with the October contract $4.82 higher to close at $361.02 and the November contract up $5.47 to $359.35.
The CME Feeder Cattle Index was up $2.57 to $367.61.
Corn futures were lower on news that the USDA raised the corn stocks to 1.53 billion bushels. Both the December and March contracts closed 6 cents lower to $4.15 and $4.32, 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 and averaged $384.74.
Nebraska: Tri-State Livestock in McCook sold 3,772 head on Monday. Compared to the previous auction, steers sold $4-15 lower and heifers traded $11-15 lower. Benchmark steers averaging 786 lbs. sold for $370.
New Mexico: Roswell Livestock in Roswell sold 1,108 head on Tuesday. Compared to the previous auction, steer calves 400-450 lbs. sold steady to $15 higher, 450-550 lbs. were $18-23 lower and 550-600 lbs. sold $11 higher. Feeder steer yearlings 600-700 lbs. sold steady to $5 lower. Heifer calves 350-450 lbs. sold steady to $2 higher, 450-550 lbs. were $15-20 higher and 550-600 lbs. sold $15 lower. Feeder heifers had no comparable sales. Benchmark steers averaging 722 lbs. sold for $349-356 and averaged $351.03.
Texas: Giddings Livestock in Giddings sold 1,180 head on Monday. Compared to the last auction, lightweight steers and heifers under 400 lbs. sold $4-8 lower. Heavier calves over 400 lbs. were fully steady to $4 higher. Benchmark steers averaging 713 lbs. sold for $322-340, averaging $328.86. — Charles Wallace, WLJ contributing editor
