Monday markets
Cattle markets were slow to develop today, with the only positives in some nearby feeder futures contracts.
Live cattle futures were in the red. The August contract—which expires tomorrow—lost $1.75 to $120.25, and the October contract lost 80 cents to $128.32.
Cash trade was nonexistent today, with only 35 head sold. On the formula side, a total of 35,000 head averaging 870 lbs. averaged $199.94.
“Trade is likely to be sluggish through most of the week, although traders will closely follow the moves in both boxed beef trade and cash cattle markets, along with outside market commodities,” remarked Rick Kment, DTN contributing analyst, in his closing comments.
Total negotiated cash trade through Aug. 29 was a disappointing 57,120 head. Live steers averaged $125.86, and dressed steers averaged $204.56.
USDA released its latest data for formulated base purchases through Aug. 27. Total dressed and live cattle sales for the week were 280,297 head, compared to 284,015 head a week earlier. A year earlier, total purchases were 283,481 head.
Slaughter for the day is estimated to be 117,000 head, a thousand head above a week earlier. Last week’s projected slaughter is 651,000 head. USDA reported actual slaughter for the week ending Aug. 14 as 636,014 head.
Boxed beef prices were lower to start the week. The Choice cutout lost $2.56 to $342.78, and the Select cutout lost $2.97 to $312.55 on 86 loads.
“Now that cutout values have topped and are expected to decline the next 3-4 weeks at least, the only bullish ‘carrot’ is tighter fed cattle availability in Q4,” wrote Cassie Fish, market analyst, in The Beef.
“But given the incentive to carry cattle and feed to the premium, big carcasses are guaranteed, and front-end currentness will not return to levels experienced prior to August 2019.”
Feeder cattle
Feeders were mixed today. The September contract lost 60 cents to $164.05, and the October contract gained 52 cents to $168.95. The CME Feeder Cattle Index increased 17 cents to $159.56.
Corn futures were in the red, with the September contract down 17 cents to $5.40 and the December contract down 11 cents to $5.42.
Missouri: Joplin Regional Stockyards in Carthage sold 4,916 head Monday. Compared to the previous week, feeder steers traded steady to $4 higher, and feeder heifers traded steady to $3 higher. Benchmark steers averaging 769 lbs. sold between $142-158.50 and averaged $152.74.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 7,500 head Monday. Compared to the previous sale, feeder steers and heifers sold unevenly steady. Steer calves sold $5-8 higher, and heifer calves sold unevenly steady. Benchmark steers averaging 775 lbs. sold between $150.50-162.25 and averaged $159.57.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 1,764 head Monday. Compared to the previous week, feeders sold unevenly steady; most weights were hard to make a meaningful comparison. Steers 800-900 lbs. sold $2-4 higher, and heifers 800-850 lbs. sold $3-5 higher. Benchmark steers averaging 769 lbs. sold between $160-169 and averaged $165.19.
