Tuesday markets
Cattle futures rallied to start the holiday-shortened trading week, closing triple digits higher.
“CME cattle futures begin the week with a continuation of the rally that began last Thursday,” wrote Cassie Fish, market analyst, in The Beef. “Now well above the 10-day moving average and above last week’s high, the market is pointed toward the next level of resistance.”
Live cattle futures closed higher, with the October contract up $4.07 to $217.02 and the December contract $4.50 higher to $219.22.
Cash trade was minimal, with 223 head sold—not enough for a market trend. On the formula side, 31,500 head averaging 960 lbs. sold for an average of $353.95.
Today’s slaughter is estimated to be 109,000 head, 3,000 head above the prior week. Last week’s slaughter is projected to be 526,000 head. Total beef production under federal inspection for the week ending Sept. 5 was 465.7 lbs., down 2.7% from the previous week.
“Last week’s production was a small 526k head, compared to the improved 542k head the week prior,” Fish wrote. “This week’s holiday-reduced slaughter is estimated from 460k to 470k head. Last year’s 494k head Labor Day week slaughter was the smallest on record. Packers may be black, but they are minding their margins extremely carefully.”
Boxed beef prices were mixed on 83 loads, with the Choice cutout up $1.40 to $377.57 and the Select cutout down 48 cents to $355.39.
Feeder cattle
Feeder cattle futures also closed higher, with the September contract up $4.05 to $328.87 and the October contract $5.30 higher to $325.45.
The CME Feeder Cattle Index was 53 cents higher to $328.80.
Corn futures closed lower, with the September contract down a penny to $5.11 and the December contract 3 cents lower to $5.33.
Due to the Labor Day holiday, no sale reports were available from auction barns that normally hold sales on Mondays.
Texas: Giddings Livestock in Giddings sold 605 head on Tuesday. Compared to the previous auction, lightweight feeder steers and heifers under 500 lbs. were $5-10 lower. Feeder steers over 500 lbs. were $2-5 lower. Feeder heifers over 500 lbs. were steady to $5 higher. A group of benchmark steers averaging 718 lbs. sold for $300-318, averaging $308.97. — Charles Wallace, WLJ contributing editor
