Wednesday markets
Cattle futures closed higher and are beginning to retrace their October highs.
“CME cattle futures have had the bit in their teeth, making new highs for the move yesterday and again today,” wrote Cassie Fish, market analyst, for The Beef. “Futures are edging ever closer to monster gaps left October 17, retracing over 85% of the October high to November low break. Bulls are easy to find as any effort packers have made to regain some sort of leverage in the negotiated fed cattle market have had no impact as of yet.”
Live cattle futures closed slightly higher, with the February contract up 20 cents to $240.52 and the April contract 17 cents higher to $241.80.
USDA reported no cash trade occurred today.
On the formula side, 19,600 head averaging 944 lbs. sold for an average of $378.05.
The national weekly direct beef type price distribution for the week of Jan. 26 to Feb. 2 was the following on a live basis:
• Negotiated purchases: $239.34.
• Formula net purchases: $238.19.
• Forward contract net purchases: $233.76.
• Negotiated grid net purchases: $243.29.
On a dressed basis:
• Negotiated purchases: $376.22.
• Formula net purchases: $372.54.
• Forward contract net purchases: $367.67.
• Negotiated grid net purchases: $369.04.
Today’s slaughter is estimated to be 113,000 head, 1,000 head above than the previous week.
Boxed beef prices were lower on 101 loads, with the Choice cutout $2.69 lower to $368.02 and the Select cutout $5.14 lower to $362.09.
“So big question is with boxed beef prices supported by sharply reduced beef production but still likely to struggle seasonally this month, and packer margins approaching $200/head losers, how much more will cash fed cattle prices rally?” Fish wrote. “And how much more can the packing industry stand? Many bulls are confident that negotiated fed cattle prices will spend plenty of time above $240 in 2026, despite record weights and record packer losses.”
Feeder cattle
Feeder cattle futures closed up triple digits, with the March contract $2.15 higher to $370.07 and the April contract up $1.62 to close at $367.50.
The CME Feeder Cattle Index was 44 cents lower to $374.57.
Corn futures were higher, with the March and May contracts up a penny to $4.29 and $4.37, respectively.
Colorado: Winter Livestock in La Junta sold 3,246 head on Tuesday. Compared to the previous auction, feeder steers sold $4-5 higher, with instances of sharply higher across all weight classes. Feeder heifers sold mostly sharply higher across all weight classes. Benchmark steers averaging 732 lbs. sold between $382-395, averaging $390.07.
Montana: Miles City Livestock in Miles City sold 720 head on Tuesday. Compared to the previous auction, steers 500-699 lbs. sold mostly $5-10 higher in a narrow comparison. All other steer weights were tested too lightly to develop a full market trend, but steady-to-firm undertones were noted. Heifers were all too lightly tested last week to develop an accurate market trend, but steady to higher undertones were noticed. Benchmark steers averaging 732 lbs. sold between $382-384, averaging $383.02.
Texas: Lonestar Stockyards in Wildorado sold 1,458 head on Tuesday. Compared to the previous auction, feeder steers and heifers traded mostly $6-10 higher, with instances of up to $20 higher on the nicer quality, reputation sets. There were not enough comparable sales on steer and heifer calves for a market trend. Benchmark steers averaging 734 lbs. sold between $374.50-397, averaging $392.95. — Charles Wallace, WLJ contributing editor
