Monday markets
Following Friday’s bearish Cattle on Feed report, there was not much support to be found in the marketplace. Cattle tanked on the board today, just ahead of tomorrow’s hearing in the Senate Ag Committee on the Cattle Price Discovery and Transparency Act of 2022.
Live cattle futures were down several dollars. The April contract lost $3.35 to close at $139.10, and the June contract lost $3 to close at $135.42.
There was some cash trade today, with 6,116 head sold. Live steers sold between $140-145, averaging closer to $140. Dressed steers sold between $225-230, averaging closer to $229.12. On the formula side, a total of 54,800 head averaging 856 lbs. sold for an average of $222.77.
“Heading into this week’s market, feedlots are again going to try to use their limited supplies to push the market higher again, but if the board continues to wane lower, the triumph of higher prices could be harder to attain,” wrote ShayLe Stewart, DTN livestock analyst, in her midday comments.
Cash trade through April 24 totaled a sizable 110,597 head. Live steers averaged $143.15, and dressed steers averaged $232.37.
Tomorrow at 10 a.m. EDT, the Senate Ag Committee will hold a hearing on the Cattle Price Discovery and Transparency Act of 2022. To view the hearing’s livestream tomorrow morning, click here.
Witnesses include:
• Andy Green, senior adviser for fair and competitive markets, USDA.
• Bruce Summers, administrator, USDA’s Agricultural Marketing Service.
• William Ruffin, Ruffin Farms, Bay Springs, MS.
• Shawn Tiffany, president-elect, Kansas Livestock Association and Tiffany Cattle Company, Herington, KS.
• Shelly Ziesch, owner/operator, Ziesch Ranch, Jamestown, ND.
• Stephen Koontz, professor of agricultural and resource economics, Colorado State University, Fort Collins, CO.
Slaughter for the day is projected at 125,000 head, compared to last Monday’s number of 112,000 head. Last week’s total slaughter is projected at 665,000 head.
Boxed beef prices were mixed on 67 loads. The Choice cutout lost $1.31 to close at $266.60, and the Select cutout gained $1.75 to close at $256.52.
“The middle meats are dragging and are cheaper than a year ago, leaving many to speculate whether consumer demand is waning for high priced steaks,” said Cassie Fish, market analyst, in The Beef.
“There is typically one more spring rally in wholesale beef cuts that occurs between now and Memorial Day and one is still anticipated for 2022. But market watchers have an eye out for signs of slacking demand.”
Feeder cattle
Feeder cattle futures were also in the red. The April contract lost $1.40 to close at $156.55, and the May contract lost $2.57 to close at $161.30.
The CME Feeder Cattle Index gained $1.31 to close at $156.52.
Corn futures traded moderately higher, with the May contract up 7 cents to $8 and the July contract up 9 cents to $7.98.
“The one positive thing that’s working in feeders’ favor right now is the moisture that parts of the West and Central Plains are accumulating—good grass growing weather is nearing,” Stewart remarked.
Missouri: Joplin Regional Stockyards in Carthage sold 5,000 head on Monday. Compared to the previous week, feeder steers traded steady to $6 higher, and feeder heifers traded steady to $4 higher.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 7,000 head on Monday. Compared to a week earlier, feeder steers and heifers sold unevenly steady. Steer calves sold $10-12 higher, and heifer calves sold $2-5 higher. — Anna Miller, WLJ managing editor
