Monday markets
After a disappointing close last week, markets were higher and more optimistic today.
Live cattle futures saw some slight gains, but only by pennies. The August contract was up 5 cents to $122.12 and the October contract was up 7 cents to $127.27.
“After last week’s night-and-day-type differences—packers relishing the fact that boxed beef prices were higher while feedlots only saw 77,000 head trade at mostly steady prices—cattlemen and feedlot managers alike wonder how to capture some of this pre-Labor Day excitement before it’s come and gone,” remarked ShayLe Stewart, DTN livestock analyst, in her midday comments.
There was some cash trade that took place today. A total of 1,701 head traded, with live steers averaging $125 and dressed steers averaging $197. On the formula side, a total of 46,500 head averaging 861 lbs. averaged $192.75.
Cash trade through the last week of July totaled 77,209 head. Live steers averaged $121.97 and dressed steers averaged $197.24.
Slaughter for the day is projected at 119,000 head. Last Saturday’s slaughter totaled only 58,000 head, and last week’s slaughter is estimated at 649,000 head. USDA released actual slaughter data for the week ending July 17, which totaled 650,315 head.
Boxed beef prices are steadily increasing. On 117 loads, the Choice cutout increased $3.24 to $278.46 and the Select cutout increased $2.37 to $259.19.
“The market is rocking along from week to week with similar kill levels and cattle costs and only wholesale beef values are providing any big change,” reported Cassie Fish, market analyst, in The Beef. “This means packer margins are expanding yet again.”
Feeder cattle
Feeders saw some slight gains, with the August contract up 7 cents to $158.25 and the September contract up 17 cents to $161.97. The CME Feeder Cattle Index gained $1.54 to close at $155.58.
Corn futures climbed higher, with the September contract up 11 cents to $5.58 and the December contract up 14 cents to $5.59.
Superior Livestock Auction’s Video Royale sale will take place in Winnemucca, NV, this week. The sale will offer roughly 184,000 head. “This week’s massive sale will help producers understand what their calves are worth given the market’s current state (fat cattle prices, board’s trajectory, and corn prices),” Stewart said.
Missouri: Joplin Regional Stockyards in Carthage sold 5,000 head Monday. Compared to a week earlier, feeder steers and heifers sold steady. Benchmark steers averaging 775 lbs. sold between $149-161.50, averaging $156.13.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 6,999 head Monday. Compared to the week earlier, feeder steers and heifers sold steady to $3 lower. Steer and heifer calves sold $2-5 lower. Benchmark steers averaging 757 lbs. sold between $144-163.50, averaging $151.85.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 2,071 head Monday. Compared to the prior sale, feeder steers and heifers sold unevenly steady. Demand was good and several lots were sold due to drought in the North. Benchmark steers averaging 735 lbs. sold between $157-164. — Anna Miller, WLJ managing editor
