Monday markets
Higher feed prices sent cattle futures lower. Cash trade got going early this week but at prices consistent with last week.
Live cattle futures posted lower today. The April contract lost 65 cents to close at $138, and the June contract lost 92 cents to close at $134.92.
There was some cash trade today, steady with last week. A total of 9,657 head sold, with live steers selling between $138-140 and dressed steers selling for $222. On the formula side, a total of 39,300 head averaging 855 lbs. sold for an average of $220.75.
“Expectations for the negotiated cash cattle trade this week are mostly steady, but if the futures’ brake accelerates, cash could weaken,” wrote Cassie Fish, market analyst, in The Beef. “Packers are doing a masterful job managing inventory during these tighter market-ready fed cattle supplies as they too anticipate.”
Cash trade through the first week of April totaled 97,797 head. Live steers averaged $139.49, and dressed steers averaged $222.62.
Slaughter for the day is estimated at 121,000 head, a couple thousand head higher than last Monday.
Boxed beef prices were mixed on 63 loads. The Choice cutout gained 90 cents to close at $268.04, and the Select cutout lost 82 cents to close at $261.70.
Feeder cattle
“A humongous export sale of corn to China (over 1 million metric tons all at once) reported Monday morning set feed prices churning higher again, and the feeder cattle futures market responded with a predictable sell-off,” wrote Elaine Kub, DTN contributing analyst, in her closing livestock comments.
Feeder cattle futures sank several dollars lower. The April contract lost $3.20 to close at $158.37, and the May contract lost $3.65 to close at $162.47. The CME Feeder Cattle Index gained 10 cents to close at $156.15.
Corn futures were higher, with the May contract up 15 cents to close at $7.50 and the July contract up 17 cents to close at $7.39.
“Fortunately, cattle feeders are still approaching the sale barns with good demand in recent weeks, particularly for grass-type calves, and especially in the regions of the country where recent precipitation has given folks a little more optimism about pasture conditions,” Kub said.
Missouri: Joplin Regional Stockyards in Carthage sold 6,000 head on Monday. Compared to the previous sale, feeder steers and heifers traded steady. Benchmark steers averaging 717 lbs. sold between $162-168 and averaged $164.50.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 8,000 head on Monday. Compared to the previous sale, at the mid-session, feeder steers and heifers sold steady to $3 lower. Steer calves and heifers sold $6-10 lower. Benchmark steers averaging 730 lbs. sold between $152.85-175.25, averaging $159.30.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 1,906 head on Monday. Compared to a week earlier, feeder steers sold $2-4 lower, except 600-650 lbs., which sold $2-4 higher. Feeder heifers sold $1-3 lower, except 700-850 lbs., which sold steady to $2 higher. Benchmark steers averaging 740 lbs. sold between $158-169 and averaged $165.13. — Anna Miller, WLJ managing editor
