Feedlot attitudes received a shot in the arm on Tuesday due to the sharply higher close in the cattle futures complex. Triple digit gains dominated both the live and feeder pits, adding credence to the technical significance of Monday’s reversals. Such actions should work to fortify or at least in the short run, higher asking prices of around 127.00 plus in the South and 203.00 to 205.00 plus in the North. The cattle slaughter totaled 124,000 head, even with last week, but 1,000 smaller than a year ago.
Boxed beef cutout values were weak on select and firm on choice on light to moderate demand and offerings. Choice boxed beef was .41 higher at 210.66, and select was down .44 at 192.97.
Live cattle contracts settled 90 to 130 points higher on Tuesday as moderate to aggressive buyer support stepped back into the cattle market. The firmness in the feeder pit and the strong losses in the corn market drew buyers back into the oversold live cattle futures. June settled 97 points higher at 121.10 and August was up 1.22 at 120.37.
Feeder cattle ended the session 90 to 207 points higher with only the May contract lower. The sharp double digit losses in the corn market caused some feeder cattle traders to step back into the market. May settled .62 lower at 131.90, and August was up 2.00 at 146.47.