Although too few to trend, there were some early live sales in the western Corn belt at $127/cwt. and a few in the beef at $204, the top end of last week’s price range in the region.
Elsewhere, trade ranged from a standstill to mostly inactive with very light demand.
Weaker outside markets and the lack of cash direction weighed on Cattle futures Tuesday.
Feeder Cattle futures closed an average of 75¢ lower (32¢ to $1.30 lower).
Live Cattle futures closed an average of 56¢ lower (22¢ to $1.00 lower) except for 5¢ higher in the back contract.
That was despite another day of strong gains for wholesale beef prices. Choice boxed beef cutout value was $8.26 higher Tuesday afternoon at $338.06/cwt. Select was $3.22 higher at $306.77/cwt.
Corn futures close mostly 4¢ to 5¢ lower.
Soybean futures closed 3¢ to 7¢ lower through Jly ’22 and then mostly fractionally lower to 1¢ lower.
Major U.S. financial indices closed lower Tuesday, amid various reports pointing to a slowing domestic and international economy.
U.S. retail and food service sales were 1.1% less month to month in July, according to advanced estimates from the U.S. Census Bureau. That was a steeper decline than expected.
USDA’s Agricultural Marketing Service (AMS) began publishing two new reports this month, based on Livestock Mandatory Reporting, aimed at bolstering market transparency.
The National Weekly Direct Slaughter Cattle-Formulated Base and Forward Contract Base Purchases report provides more detail about foundational prices used in cattle market formulas, grids and contracts.
More specifically, according to USDA, it enables stakeholders to see the correlation between the negotiated trade and reported formula base prices, as well as the aggregated values being paid as premiums and discounts. Ultimately, it sounds like there will be daily reports, as well.
“Daily formula base price reports will be national in scope and released in morning, summary and afternoon versions,” according to the announcement. “The weekly and monthly formula base reports will be both national and regional in scope and include forward contract base purchase information.”
The other new report, the National Weekly Cattle Net Price Distribution report details at what price and volume levels trade occurred across the weekly weighted average price for each purchase type – negotiated, negotiated grid, formula and forward contract.
“Currently, the market speculates whether large or small volumes of cattle trade on both sides of the price spread. And in fact, with premiums and discounts applied to the prices, the spreads shown on reports can be wide. Publishing a price distribution for all cattle net prices will offer more transparency to each of the purchase type categories,” according to the USDA announcement. “This report is a window into what producers are paid for cattle (net) and retains confidentiality by segregating volumes purchased in $2.00 increments (plus or minus) the daily weighted average price depending upon premiums and discounts.”