Tuesday markets
It was another day of gains for the markets today.
“The live cattle contracts are taking the day’s front-and-center stage as the momentum in the cash cattle market is helping to carry the market higher throughout the futures complex,” remarked Elaine Kub, DTN analyst, in her midday comments today.
The April contract gained $1.35 to $122.85 and the June contract gained 20 cents to close at $124.62.
Kub continued, “If there’s one thing that the cash cattle market has got to learn from last week’s trade, it’s that pushing the week’s business out until the later part of the week usually serves higher prices. And who doesn’t like higher prices?”
A small amount of cash trade took place today. A total of 1,281 head sold for $121. On the formula side, 14,900 head averaging 850 lbs. sold for $186.16.
Boxed beef prices are higher still. On 124 loads, the Choice cutout was up $4.10 to $262.77 and the Select cutout was up $1.44 to $251.30.
The day’s slaughter is projected at 120,000 head, on trend with last week and about 15,000 head more than the same time last year—during peak COVID-19 disruption.
Feeder cattle
“The conversation of stoutly higher cost of gains isn’t going to be something that’s soon forgotten about, as feedlots are easily absorbing expenses of $1.20 to $1.25 in cost of gains daily,” Kub remarked.
“Feedlots are getting creative in using other feed to help lessen their need for corn, but throughout the market, feed costs are problematic to their margins.”
Feeder cattle were generally steady today: The April contract gained 2 cents to $146.47 and the May contract was unchanged at $151.77. CME reported its latest Feeder Cattle Index down 10 cents to $139.70. The May corn contract was a penny higher at $5.54.
Missouri: Callaway Livestock Center in Kingdom City sold 1,673 head Monday. Compared to the prior week, 500-700-lb. steers sold $4-8 higher with 750-800-lb. yearling steers selling with a sharply higher undertone. Four-weight feeder heifers sold steady to firm, with 500-550 lbs. on a light test selling steady to $4 higher, and 550-600 lbs. selling steady. — Anna Miller, WLJ editor
