Monday markets
The market traded mostly lower today on account of a rally in corn prices. Cash trade was inactive to start out the week, and packers will likely be looking for a reduced number ahead of the holiday-shortened weekend.
Live cattle futures were mixed, with the August contract up 75 cents to $141.55 and the October contract down 15 cents to $142.90.
There was some cash trade today, with 1,341 head sold. Live steers sold for $144. Cash trade was mostly at a standstill in the southern Plains and western Corn Belt. In Nebraska, cash trade was mostly inactive on very light demand.
On the formula side, a total of 41,500 head averaging 878 lbs. sold for an average of $229.81.
Through the week ending Aug. 28, only 70,637 head sold on the cash market. Live steers averaged $145.14, and dressed steers averaged $232.94.
Slaughter for the day is estimated at 122,000 head. With Labor Day next Monday, the shortened kill week will result in less head slaughtered. Slaughter for last week is estimated at 678,000 head.
“Last week ended with a big bang, a 678K head F.I. cattle slaughter, the largest of the year and even with the non-fed slaughter running heavy, there’s a good chance the fed slaughter pushed to 528K or 529K head, near the two highs for 2022,” wrote Cassie Fish, market analyst, in The Beef. “If so, and we won’t know until a couple of weeks, then that would be the largest August fed slaughter since 2011. This is fundamentally positive.”
Boxed beef prices were higher on 91 loads. The Choice cutout gained 28 cents to close at $263.04, and the Select cutout gained $3.99 to close at $242.75.
“The cutout last week averaged a little more than $1 lower than the prior week as the wholesale beef market continues to snake through the summer in the tightest trading range in history,” Fish said. “Black packer margins continue to hold together very well.”
Feeder cattle
“Until harvest is complete and farmers, cattle feeders and traders alike all know how this year’s crop panned out, the market is subject to flutter based on changes in this year’s crop,” wrote ShayLe Stewart, DTN livestock analyst, in her midday comments.
Feeder cattle futures took a nosedive, with the September contract down $2.27 and the October contract down $2.32 to $181.07.
The CME Feeder Cattle Index gained 91 cents to close at $183.16.
Corn rallied another day, with the September contract up 15 cents to $6.83 and the December contract up 18 cents to $6.83.
Missouri: Joplin Regional Stockyards in Carthage sold 5,000 head on Monday. Compared to the previous sale, feeder steers sold steady to $3 higher, and feeder heifers sold steady. Benchmark steers averaging 730 lbs. sold for $191.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 7,500 head on Monday. Compared to a week earlier, feeder steers sold unevenly steady with a light test in most classes. Feeder heifers sold steady to $3 lower with a light test. Steer calves sold steady, and heifer calves sold steady to $4 lower. Benchmark steers averaging 776 lbs. sold from $173-179, averaging $174.43.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 1,753 head on Monday. Compared to a week earlier, feeder steers under 1,000 lbs. sold with lower undertones, while steers over 1,000 lbs. sold with steady to higher undertones. Feeder heifers sold with steady to lower undertones. Benchmark steers averaging 740 lbs. sold between $187-190.50, averaging $189.03. — Anna Miller, WLJ managing editor
