Markets regained lost momentum from yesterday as slaughter shifts resumed at the JBS plant in Grand Island, NE.
Live cattle futures were higher, with the October contract up $1.85 to $124.12 and the December contract up $2.50 to $129.65.
“Tuesday's shift higher was the most significant support that the live cattle complex has seen since mid-August, which is before hitting contract highs in all nearby futures trade,” remarked Rick Kment, DTN contributing analyst, in his closing comments.
“Since that time, prices have moved steadily lower with traders unable to find any sense of short- or long-term support.”
A small amount of cash trade took place today. A total of 922 head traded, with live steers averaging $124 and dressed steers averaging $196. On the formula side, a total of 25,400 head averaging 876 lbs. averaged $204.21.
The national weekly direct beef type price distribution for the week of Sept. 6 to Sept. 13 was the following on a live basis:
• Negotiated purchases: $124.88.
• Formula net purchases: $127.60.
• Forward contract net purchases: $128.33.
• Negotiated grid net purchases: $127.78.
On a dressed basis:
• Negotiated purchases: $200.26.
• Formula net purchases: $203.15.
• Forward contract net purchases: $197.92.
• Negotiated grid net purchases: $203.29.
Slaughter for the day is projected at 120,000 head, with the Grand Island, NE, JBS plant back up and running after a fire over the weekend. This brings the week’s total slaughter so far to 234,000 head, compared to last week’s holiday-shortened number of 124,000 head. In comparison, last year’s slaughter for the same time this week totaled 240,000 head.
Boxed beef prices were lower on 136 loads. The Choice cutout lost $3.04 to $322.80, and the Select cutout lost $1.54 to $290.62.
Feeders were several dollars higher, with the September contract up $3.07 to $155.27 and the October contract up $2.70 to $158.15. The CME Feeder Cattle Index lost 70 cents to close at $154.39.
“Buyers will need to actively move back into the market Wednesday morning. If buyer support is undeveloped and prices continue lower through the rest of the week, the bearish market trend will continue, and this Tuesday market bounce will be looked at as nothing more than position covering on a ‘turnaround Tuesday,’” Kment said.
Corn futures also had a higher day today. The September contract gained 6 cents to $5.03, and the December contract increased 7 cents to $5.20.
New Mexico: Roswell Livestock Auction in Roswell sold 740 head Monday. There were no accurate comparisons on steer and heifer calves or feeders, but a lower undertone was noted. Benchmark steers averaging 767 lbs. sold between $135-137, averaging $135.69. — Anna Miller, WLJ managing editor