Monday markets
Eyes are on lean hogs, which have loaned some uncertainty to the cattle markets. Futures found themselves in the red today. Cash trade was minimal, but live cattle averaged $124.60, and boxed beef prices continue to climb.
Live cattle were unable to make any headway today. The August contract was unchanged at $123 and the October contract lost 40 cents to $127.47.
A small amount of cash trade took place today. A total of 642 head sold, with live steers selling between $124-125, and dressed steers selling for $202. On the formula side, a total of 47,700 head averaging 863 lbs. sold for $194.15.
Cash trade through the first week of August totaled 94,064 head—higher numbers than we’ve experienced over the past several weeks. Live steers averaged $123.88 and dressed steers averaged $198.15.
Slaughter for the day is estimated at 119,000 head, 3,000 head higher than the same time a week ago. Total slaughter for all of last week is estimated at a disappointing 641,000 head—well below the industry goal of 670,000 head.
There’s no stopping in sight for boxed beef prices—the Choice cutout is nearly back over the $300 threshold. On 104 loads, the Choice cutout climbed $3.54 to $299.80 and the Select cutout gained $3.72 to $280.81.
“The strong triple-digit gains in Choice cutout values last week created overall optimism, but traders are becoming more concerned that the upward surge may quickly lose momentum and tumble lower,” reported Rick Kment, DTN contributing analyst.
“Questions about where beef prices will land once Labor Day buying has wrapped up, and the industry moves to upcoming fall and winter demand, may create additional hiccups through the live cattle complex in the upcoming days and weeks.
Feeder cattle
Feeders found themselves in the red today. The August contract lost 55 cents to $159.30 and the September contract lost 12 cents to $163.20. The CME Feeder Cattle Index lost 25 cents to $156.30.
Corn prices failed to gain any ground today. The September contract lost 4 cents to $5.50 and the December contract lost 2 cents to $5.53.
“There will be more focus on feeder cattle auctions over the coming days, although overall demand for feeder cattle is likely to remain very strong, potentially adding to cash price levels,” Kment said.
Missouri: Joplin Regional Stockyards in Carthage sold 3,500 head Monday. Compared to the previous sale, in early trading, steers traded steady to $4 lower and feeder heifers traded steady. Benchmark steers averaging 723 lbs. sold between $153-167, averaging $160.96.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 8,500 head Monday. Compared to the previous sale, feeder steers and heifers sold unevenly steady. Demand was moderate to good. Benchmark steers averaging 770 lbs. sold between $153-160, averaging $157.59. — Anna Miller, WLJ managing editor
