Monday markets
Cash trade was mostly inactive on light demand today in all feeding regions. The latest established market was last week in the Southern Plains with live cattle at $105. In the western Corn Belt last week, live purchases traded from $104-107 with dressed purchases mostly at $167. Only 249 head of cattle traded on the cash market today, compared to 46,700 cattle on formula.
The futures markets saw a slight rally from Friday. August live cattle were up $1.28 to $104.50 (contract ended today), October up 40 cents to $105.30, and December up 48 cents to $108.98.
“Monday’s trade has rallied more support than most thought the day would be able to but remembering that the week falls in front of a three-day holiday could dampen the market’s ability to make substantial progress,” reported DTN Livestock Analyst ShayLe Stewart.
Feeder cattle futures also experienced a slight rally. September feeders were up slightly to $140.30, October up to $140.63 and November up to $141.38. The latest known CME Feeder Cattle Index was down almost 60 cents to $140.99
Last week, total red meat production was estimated at 1,109.1 million pounds, 1 percent higher than the week prior and nearly 6 percent higher than last year. However, 2020’s year-to-date beef cattle slaughter was down nearly 5 percent compared to the year prior. A total of 654,000 head were slaughtered last week. For today, 119,000 head were killed compared to last week’s number of 117,000 head.
Cassie Fish, market analyst in The Beef, warned a fourth quarter rally would be unlikely this year. “This is the key fundamental for the next several months as fed cattle supplies are large enough to accommodate a 650k head kill without the packer having to push. Prior to social distancing in packing plants, packers may have run harder as they did in November and December of 2019, with lots of +660k to as high as 682k kills. Post-social distancing, the largest kill has been 665k back in June and the second largest was last week’s 654k.”
Boxed beef prices are starting to head toward the next seasonal decline, with the Choice cutout losing $1.45 to $227.95 and the Select cutout gaining 46 cents to $215.32 on 73 spot loads. Labor Day weekend is likely to kick off the seasonal decline of retail beef prices.
Feeder cattle
Joplin Regional Stockyards in Carthage, MO, reported 5,751 head sold today. Compared to last week, steer calves and yearlings were steady, except for yearlings over 800 lbs. which were weak to $2 lower. Heifer calves were steady to $3 higher.
Oklahoma National Stockyard in Oklahoma City, OK, sold 10,000 head today. Compared to last week, feeder steers were $4-7 lower and feeder heifers were $1-5 lower. Steer calves were mostly steady and heifer calves traded $2-4 lower. — Anna Miller, WLJ editor
