AgResource Daily Cattle Analysis: Cattle futures closed higher on Tuesday, and feeder cattle were a little lower on higher corn prices. A steady outlook is offered for early trade today.
Cash markets were at a standstill through Tuesday, with no bids or offers quoted. Interest is expected to pick up today, but active trade is likely to hold off until Thursday or Friday. The outlook at midweek is firm.
Packers were successful in moving beef prices higher in the first half of the week, and values are expected to continue moving up. On Tuesday, the choice cutout value gained $2.09 to $300.17, and the select value was up $.77 at $285.30. Last week, the choice value was below $300 for the first week since early May. With margins deep in the red and feedlots unable to sell lower prices, packers are expected to be aggressive in moving beef prices higher in the coming weeks.
December cattle continue to trade firmly above major moving averages. Breaks have been well supported, and an outlook for higher cash prices could drive December to test the summer highs at $188-190.
