Monday markets
Cattle markets posted lower today, with futures down and volume of traded cattle decreased.
Live cattle futures were lower, with the February contract down 22 cents to $141.85 and the April contract down 47 cents to $146.35.
A small amount of cash trade took place today, with 573 head—not enough for a market trend. On the formula side, a total of 36,900 head averaging 878 lbs. sold for an average of $219.79.
Cash trade for the first week of February totaled 98,188 head—much higher than recent weeks. Live steers averaged $139.71, and dressed steers averaged $221.78.
“Most analysts predict cash to add value this week on top of last week’s $2-3 gain,” wrote Cassie Fish, market analyst, in The Beef. “The north had excellent clean-up and appears to be in very good shape from an immediate market-ready fed cattle supply standpoint.”
Today’s slaughter is estimated at 121,000 head, a thousand head more than last Monday. Last week’s total slaughter is projected to be 639,000 head, down a few thousand head from a week earlier.
Boxed beef prices were lower on 80 loads. The Choice cutout lost 85 cents to close at $278.96, and the Select cutout lost $1.01 to close at $275.04.
“Even still, packer margins have been record year to date. Of the major primals, only the rib is even remotely close to last year’s price,” Fish said.
Feeder cattle
“Thanks to sky rocketing soybean prices, which are fanning the flames under corn values, CME feeder cattle futures are under pressure today,” Fish said.
Feeder cattle futures were lower, with the March contract down $1.07 to $165.25 and the April contract down $1.15 to $170.30.
The CME Feeder Cattle Index lost 3 cents to close at $160.14.
Corn futures had a good day, with the March contract up 14 cents to $6.35 and the May contract up 15 cents to $6.37.
“The feeder cattle market will likely see fewer cattle in auctions this week as the market has moved most of the long-yearlings that were left to sell and buyers will be cognizant of their buying abilities given the higher feed prices,” remarked Todd Hultman, DTN lead analyst, in his midday comments.
“But still, the market has much to offer and buyers are going to want to be able to play the game while the marketplace is hot.”
New Mexico: Roswell Livestock Auction in Roswell sold 336 head Monday, with limited numbers due to weather. A small group of benchmark steers averaging 765 lbs. sold for $145.50.
Missouri: Joplin Regional Stockyards in Carthage sold 2,239 head Monday. Benchmark steers averaging 766 lbs. sold between $159.50-166, averaging $164.39.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 1,830 head on Monday. Receipts were limited due to a winter storm, but demand was extremely good for the light run. Feeder steers and heifers sold $2-6 higher, with instances of $8 higher. Steer and heifer calves sold $5-10 higher. Benchmark steers averaging 778 lbs. sold between $157-164, averaging $160.46. — Anna Miller, WLJ managing editor
