Monday markets
The cattle market found itself trending higher, perhaps encouraged by last Friday’s neutral-to-bullish Cattle on Feed report.
Live cattle futures were solidly in the green today. The August contract increased $2.17 to $126.45, and the October contract was up $2.90 to $131.95.
Some cash trade took place today, although there were not enough live purchases for an accurate market trend. A total of 2,686 head sold, with dressed steers averaging $200. On the formula side, a total of 35,100 head averaging 875 lbs. averaged $197.40. Last week’s cash trade was higher, with a total of 95,771 head traded. Live steers averaged $125.62, and dressed steers averaged $201.07.
“All these statistics do is highlight what every cattle feeder knows; leverage has yet to return to cattle feeders as the eighth month of 2021 concludes,” remarked Cassie Fish, market analyst, in The Beef.
Today’s slaughter is estimated at 120,000 head, about a thousand head above the same time last week. Total slaughter for last week is expected to reach 665,000 head—finally closer to the level the industry needs to meet beef demand. Actual slaughter for the first week of August totaled 644,342 head.
“Plants were able to meet expectations, and although cow slaughter composed much of the increase, the larger number brings cattle feeders closer to a bargaining position that will allow them to negotiate a price to share in the beef pipeline margins that they can not achieve today,” the Cattle Report wrote.
“The larger supplies of beef have failed to satisfy the demand for beef, and the price continues to rise uncontrollably.”
Boxed beef prices continue to increase ahead of the Labor Day holiday. On 83 loads, the Choice cutout increased $2.97 to $348.03, and the Select cutout increased 87 cents to $319.40.
Feeder cattle
Feeders were mixed, with the soon-to-expire August contract down 82 cents to $158.20 and the September contract up $1.80 to $167.30. The upcoming October contract increased $3.05 to $170.67.
The CME Feeder Cattle Index lost 6 cents, closing at $155.73.
Corn prices were unable to make any headway. The September futures contract closed half a penny less at $5.38, and the December contract closed a penny lower at $5.35.
Iowa: Russell Livestock in Russell sold 1,804 head Monday. Compared to the sale two weeks prior, limited offerings of steer calves under 550 lbs. sold $8 lower and over 500 lbs. sold firm to $4 higher. Heifer calves under 700 lbs. sold $4 lower and over 700 lbs. sold firm to $5 higher. Benchmark steers averaging 746 lbs. sold between $163.85-172, averaging $165.02.
Missouri: Joplin Regional Stockyards in Carthage sold 4,617 head Monday. Compared to the previous sale, feeder steers under 700 lbs. traded steady to $3 lower, and steers over 700 lbs. traded steady to $4 higher. Feeder heifers traded steady to $4 higher. Benchmark steers averaging 778 lbs. sold between $152-157, averaging $155.83.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 5,500 head Monday. Compared to the week prior, feeder steers sold $1-3 higher, and feeder heifers sold $3-6 higher. Steer and heifer calves sold $3-6 lower. Benchmark steers averaging 780 lbs. sold between $152-159.50, averaging $155.41. — Anna Miller, WLJ managing editor
