Monday markets
Last week, cash fed prices averaged $140, which was the second highest price in history, second only to 2014. Today, futures were higher, and although cash trade was light, steers sold for $140.
Live cattle futures were higher, with the December contract up 50 cents to $138.17 and the February contract up 70 cents to $139.65.
“Mondays are typically a tough day for the live cattle complex, so seeing trader support right from the get-go is encouraging as the futures market tends to determine the long-term success of a rally,” remarked ShayLe Stewart, DTN livestock analyst, in her midday comments.
A small amount of cash trade took place today, with about 1,000 head trading for $140. There were not enough trades for a dressed steer market trend. On the formula side, a total of 33,300 head averaging 893 lbs. averaged $221.93.
Cash trade for the first week of December totaled 112,080 head. Live steers averaged about $2 higher at $140.33, and dressed steers averaged $219.92, about $3 higher.
“While the market is thankful to have successfully traded another week of higher prices and volume over 100,000 head—it’s evident packers are beginning to add to their deferred supply, which could be a hinderance to the market moving forward,” Stewart said.
Slaughter for the day is projected at 122,000 head, a thousand head above the same time a week earlier. Slaughter for the first week of December is estimated at 676,000 head.
Boxed beef prices were down on 116 loads, with the Choice cutout down $1.83 to $272.53 and the Select cutout down 79 cents to $257.85.
Feeder cattle
Feeder cattle futures were also higher today. The January contract gained $1.12 to close at $165.25, and the March contract gained 85 cents to close at $167.95. The CME Feeder Cattle Index lost $1.15 to close at $160.43.
Corn futures were modestly lower, with the December contract down 2 cents to $5.83 and the March contract down less than half a penny to $5.83.
“Grow yards will be active this winter as shortages of grazing force many calves into conditioning yards. Feedlots normally discount grow yard cattle because of flesh and resulting performance deficiencies,” the Cattle Report wrote. “Grow yards will find high feeding cost will hamper growing expense and cost of gains will often equal the purchase cost of unweaned calves.”
Missouri: Joplin Regional Stockyards in Carthage sold 10,000 head Monday. Compared to the sale a week prior, feeder steers under 550 lbs. traded $5-9 higher, and heavier weights traded steady to $3 higher. Feeder heifers traded steady to $3 higher. Benchmark steers averaging 766 lbs. sold between $158-164.50, averaging $162.10.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 18,000 head Monday. Compared to a week earlier, feeder steers sold steady to $3 higher, and feeder heifers sold unevenly steady. Steer calves sold $2-4 higher, and heifer calves sold $2-5 lower. Benchmark steers averaging 772 lbs. sold between $157-168.50. — Anna Miller, WLJ managing editor
