Monday markets
Corn has officially crossed the $8 mark. With grain prices headed skyward, the cattle market started the week off on a disappointing note.
Live cattle futures were slightly lower today, with the April contract down 20 cents to close at $140.47 and the June contract down 62 cents to close at $135.80.
“In order to see the cash cattle market have much success, feedlots need the approval and encouragement of the futures market as the two sides work hand in hand,” wrote ShayLe Stewart, DTN livestock analyst, in her midday comments.
“With calf-fed fats not in the market yet, feedlots have a thin window from now until the middle of May before the market will become overloaded.”
Cash trade was minimal today, with only 224 head sold. On the formula side, a total of 39,900 head averaging 872 lbs. sold for an average of $220.95.
Cash trade through April 17 totaled 97,066 head. Live steers averaged $141.14, and dressed steers averaged $225.96.
Slaughter for the day is estimated at 118,000 head, compared to last Monday’s 124,000 head. Slaughter for last week is projected at 634,000 head, limited due to the Easter holiday.
“The slaughter size this week will be important in keeping in check the size of processing margins with an effort of cattle owners to share in the overall margin available to beef producers and processors,” wrote the Cattle Report. “The period from now until Memorial Day will be a strong demand period for beef.”
Boxed beef prices were lower, with the Choice cutout down $1.54 to $271.08 and the Select cutout up 56 cents to $259.46.
Feeder cattle
Corn futures skyrocketed past $8; the May contract and July contract each gained 23 cents to close at $8.13 and $8.07, respectively.
Feeder futures dropped in response. The April contract lost $2.42 to close at $155.77, and the May contract lost $2.62 to close at $159.15.
The CME Feeder Cattle Index lost $1.33 to close at $154.62.
“Sales will likely be thin this week as getting trucks in and out of shipping corrals in the North could be tough with hard-packed drifts, and in the rest of the country the numbers of calves/feeders left to market are thin as most have already worked their way to earlier sales,” Stewart noted.
Missouri: Joplin Regional Stockyards in Carthage sold 4,088 head on Monday. At the mid-session, feeder steers traded steady, and feeder heifers traded steady to $3 higher. Benchmark steers averaging 780 lbs. sold between $157-160.50.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 5,700 head on Monday. At the mid-session, feeder steers sold $2-4 higher, and feeder heifers sold steady to $3 higher. Steer and heifer calves sold unevenly steady on a light test. Benchmark steers averaging 772 lbs. sold between $154-165.85, averaging $160.50.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 1,401 head on Monday. Compared to a week prior, feeder steers and heifers sold with lower undertones. Benchmark steers averaging 783 lbs. sold between $154.25-160 and averaged $158.16. — Anna Miller, WLJ managing editor
