Monday markets
There wasn’t too much excitement in today’s cattle trading; last week was a big week for feeder cattle and fall-delivered calves at the auctions. In the live cattle arena, packers took only formula cattle today. A total of 42,700 head were priced on the formula grid at $154.29, weighing 872 lbs. There was no cash trade today.
Estimated slaughter for today was just 113,000 head, which is a slow start for the week. The beef markets are gaining some strength with Choice gaining $1.40 to $204.66 and Select 51 cents higher to $190.40 on 104 loads. The Choice-Select spread was $14.26 and 83.2 percent of graded beef was Choice or better.
ShayLe Stewart, DTN market analyst, reported, “It will be interesting to see where cash cattle prices land this week as show lists are mixed, but consensus is growing that the backlog of cattle is growing smaller and smaller. That’s not to say that there aren’t still 1,400- to 1,500-pound fat cattle throughout the countryside that need processed, but lighter cattle are hitting the knife now too.
“New show lists appear to be mixed, somewhat higher in Nebraska/Colorado, lower in Texas, and sharply lower in Kansas. Establishing the week’s asking prices will be the first matter of business, and feeders could show some sign of where asking prices will be something Monday afternoon or early Tuesday.”
Last week’s negotiated cash cattle sales totaled 119,851 head. Of that, 104,738 head are committed for delivery in the next two weeks while the remaining 15,113 head are scheduled for the following 15-30-day delivery.
Feeder cattle
Feeder cattle markets have been strong and are at or exceeding last year’s prices, Stewart also said, “Feeder cattle contracts have been the leading force of the livestock complex over the last month leading the industry higher and breaking a path for live cattle contracts to follow. Last Friday closed above the resistance plane at $143.85 and thus far through Monday’s trade the market has kept prices above that threshold.”
Most feeder contacts were stronger: the August contract was up 20 cents to $144.87, September 85 cents higher and October 57 cents higher to close at $147.22. The next point of resistance is $150.
According to the National Feeder Summary report, compared to last week, steers and heifers are trading mostly steady to $4 higher. This week’s prices were pretty much—in most cases—a repeat of last week’s market trend; with some of the most advances continuing in heavy yearlings over 800 lbs.
High volume sales at Oklahoma City and El Reno did see some uneven to lower prices, but on mostly plain to average feeders. Sale barns throughout the Northern Plains continue their summertime schedules with larger sales every other week. Plenty of buyers remain, who want to place these long strings of yearlings coming off summer grass or out of backgrounding yards on feed.
These long-time hard native yearlings are always in demand this time of year. Huss Livestock Market in Kearny, NE, on Wednesday sold a little over 700 head of 900-925-lb. steers averaging 913 lbs. for a weighted average price of $138.05. Sioux Fall Regional Cattle Auction on Monday sold near 450 head of steers averaging 985 lbs. for a weighted average price of $130.76. Thursday, Mitchell Livestock Auction in Mitchell, SD, sold 810 steers weighing between 800-850 lbs., averaging 829 lbs. sold with a weighted average price of $145.59.
Superior Video Auction held their Video Royale this week, with many value-added program yearlings selling with premiums,. In one case, 124 head of 825 lb.-value-added program yearling steers for September delivery sold at $173.
Winter Livestock in Dodge City, KS, will offer near 12,000 head for their Friday and Saturday special, and is sure to be well-attended with buyers. Corn crop conditions improved this week to 72 percent good to excellent, compared to 69 percent last week and 58 percent last year. With improving corn conditions at this time of year, yields will no doubt improve, as improved yields will keep the corn market under pressure regardless of demand.
Big crops usually get bigger and yields will be no exception. This makes it hard to convince anyone, especially farmer-feeders, that we will have any corn production problems and the size of the corn crop will overshadow demand. It has many producers willing to walk a lot of corn to town. — Pete Crow, WLJ publisher
