Monday markets
Markets were indecisive today and ultimately decided to trade lower.
“If the market can get its bumps worked out early this week, there’s a strong likelihood we will be able to trade higher later in the week when cash cattle trade gets more aggressive, and if boxed beef prices keep trading higher, which is highly anticipated,” remarked ShayLe Stewart, DTN livestock analyst, in her midday comments.
Live cattle were down across the board: The April contract declined 70 cents to $122.72 and the June contract lost 47 cents to $122.10.
A small amount of cash trade took place today. A total of 201 head sold—not enough for a market trend. On the formula side, 37,700 head averaging 843 lbs. sold for $187.90. Last week saw a sizable amount of cash trade, up several dollars higher from the week prior. A total of 108,513 head sold, with live steers averaging $121.99 and dressed steers $195.24.
“Looking at the week ahead, the market stands a phenomenal chance of seeing robust cash cattle trade again this week,” Stewart noted. “As evidenced again last week, the market offered the strongest cash cattle prices late in the week, so one may consider pushing past Wednesday’s trade and waiting for Thursday or Friday before getting serious about selling pens of cattle as supplies favor feedlot positions.
Slaughter for the day is projected at 112,000 head, compared to last week’s number of 105,000 and last year’s number of 88,000 head. Total slaughter for last week is estimated at 641,000 head. USDA released actual slaughter data for the week ending March 27, which totaled 648,796 head.
Boxed beef prices were mixed today, after consistently gaining several dollars a day. The Choice cutout was down 76 cents to $271.41 and the Select cutout was up $2.09 to $266.16.
Feeder cattle
Feeders were mixed today: The April contract was down 25 cents to $144.50 and the May contract was up 7 cents to $149.70.
As Stewart noted, “without like-minded, rallying support from the live cattle contracts, the feeder cattle contracts feel uneasy about the day.”
The corn contracts traded similarly, with the May contract down 8 cents to $5.69. CME reported its latest Feeder Cattle Index up $1.45 to $143.36.
Missouri: Joplin Regional Stockyards in Carthage sold 6,000 head Monday. Compared to the prior sale, feeder steers traded steady and feeder heifers traded steady to $4 higher. Benchmark steers averaging 773 lbs. sold between $140-144.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 10,800 head Monday. Compared to the week prior, feeder steers sold steady to $1 higher and feeder heifers sold steady to $2 higher. Steer calves sold $1-2 lower and heifer calves sold unevenly steady. Benchmark steers averaging 776 lbs. sold from $139-146. — Anna Miller, WLJ managing editor
