Monday markets
The cattle market was able to trade higher today, although cattlemen are eying an incoming winter storm with concern, which may impact prices for the week.
Live cattle futures were modestly higher today, with April up 70 cents to $138.52 and June up 97 cents to $134.80.
There was some cash trade to start the week off, with 1,710 head sold. Live steers sold between $141-142, and dressed steers sold for $220. On the formula side, a total of 36,000 head averaging 835 lbs. sold for an average of $220.92.
“There is little new on the fundamental front, though some think this week’s cash trade will end up a buck higher while others expect yet another round of steady cash prices,” wrote Cassie Fish, market analyst, in The Beef. “For five consecutive weeks, five-area cash steer prices have traded in a range between $138.30-139.43.”
Cash trade through April 10 totaled 96,640 head, with live steers averaging $138.95 and dressed steers averaging $222.82.
An incoming storm will also likely pressure the market this week. “Transporting cattle will be difficult if the storm produces as much snow as expected, and packers could begin to grumble about cattle carrying tags,” said ShayLe Stewart, DTN livestock analyst, in her midday comments.
“Feedlots are anticipated to price cattle higher this week and they know their window of opportunity to do so is growing thinner and thinner as May is quickly approaching.”
Slaughter for the day is projected at 124,000 head, 3,000 head more than last Monday. Slaughter through last week is estimated at 676,000 head, close to 40,000 head more than a week earlier.
“Last week’s slaughter was a surprise at 679K head,” Fish said. “With drought-induced cow slaughter running over 20 percent, a big chunk of those were likely cows. This week’s slaughter is expected to be closer to the 640K level we saw a couple of weeks ago, as slaughter seesaws up and down.”
Boxed beef prices were mixed on 82 loads. The Choice cutout gained $1.64 to close at $272.11, and the Select cutout lost 4 cents to close at $260.29.
Feeder cattle
Feeder cattle futures were also able to close higher today. The April contract gained 10 cents to close at $156.65, and the May contract gained 52 cents to close at $159.90. The CME Feeder Cattle Index lost 34 cents to close at $155.67.
Corn futures saw some losses, with the May contract down 4 cents to $7.64 and the July contract down 2 cents to $7.58.
“Cattlemen are willing to put up with a nasty storm to get some moisture, but for those who are calving, this week could be a bear to wrestle with,” Stewart said.
Missouri: Joplin Regional Stockyards in Carthage sold 6,000 head on Monday. Compared to a week earlier, at the mid-session, feeder steers under 575 lbs. traded $9-15, with heavier weights trading $3-5 lower. Feeder heifers traded $4-9 lower. Benchmark steers averaging 727 lbs. sold between $160-164 and averaged $161.25.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 7,700 head on Monday. Compared to a week earlier, feeder steers and heifers sold $2-4 lower. Steer calves sold $2-5 lower, and heifer calves sold $4-6 lower. Benchmark steers averaging 776 lbs. sold between $150-157 and averaged $156.09. — Anna Miller, WLJ managing editor
