Monday markets
Due to the federal holiday, the markets were closed today. Cash trade was virtually nonexistent and slaughter numbers were tightened.
Friday’s market closed higher in the livestock contracts, but was disappointing in terms of cash trade. Last week, a total of 74,422 head traded on the negotiated cash cattle market. Live steers averaged $113.81 and dressed steers averaged $180.11.
Today, a total of 37 head traded on the cash market—not enough trades for a market trend. A total of 20,200 head of formula cattle averaging 896 lbs. averaged $182.40.
Boxed beef saw some slight gains today: The Choice cutout was up 7 cents to $232.44 and the Select cutout was up 48 cents to $221.41 on 93 loads.
The winter storm sweeping across the Plains has many concerned over transportation and logistical issues.
“Packers will want to stay on schedule at the plants but will find transportation, labor and mechanical problems all across the Plains,” commented the folks at the Cattle Report. “Cattle weighed under current conditions will weigh light and mud will not be an issue until temperatures rise, allowing snow and ice to melt.”
A total of 92,000 head were slaughtered today, compared to last week’s 114,000 head. Last week’s slaughter totaled 611,000 head—much below the typical trends.
“This week’s slaughter number helps explain why packers didn’t push the market higher,” the Cattle Report said. “The decline was not designed to back cattle up, and was not because of poor margins. It was simply the combination of pressure to push large volumes of cattle, day after day, through beef plants built 50 years ago and the required continual maintenance joined with slaughter reductions because of the weather-related problems.”
Feeder cattle
The latest CME Feeder Cattle Index was reported Friday, down 15 cents to $135.34.
Many auction markets have shuttered their doors during the storm.
South Dakota: Sioux Falls Regional Cattle Auction in Sioux Falls was one of the few markets to host a sale Monday. A total of 890 head sold. Feeder steers and heifers sold unevenly steady, except feeder heifers 450-500 lbs. sold $10 higher. Benchmark steers averaging 743 lbs. sold between $143.50-152.25. — Anna Miller, WLJ editor
