Monday markets
The markets headed lower today, with futures down and cash trade minimal.
Live cattle futures were lower, with the February contract down $1.07 to $136.25 and the April contract down $1.47 to $140.57.
Cash trade over the day was slim, with 634 head sold. On the formula side, a total of 43,400 head averaging 886 lbs. sold for an average of $220.71.
Cash trade through the first full week of January totaled 47,962 head. Live steers averaged $138.38 and dressed steers averaged $220.05.
“Cash cattle prices, softer last week thanks to COVID, could slip a bit more on the uncertainty, as who doesn’t remember last year’s disaster?” wrote Cassie Fish, market analyst, in The Beef. “Truth is the industry has substantially fewer fed cattle to slaughter the first 4 months of 2022, so big kills aren’t required to stay current. Plus the industry did a great job harvesting numbers aggressively in November and December.”
Slaughter for the day is projected at 113,000 head, compared to last week’s 107,000 head. Last week’s slaughter is estimated at 620,000 head.
Boxed beef prices shot up on 107 loads, with the Choice cutout up $4.22 to $276.04 and the Select cutout up $5.40 to $266.50.
“Traders and cattle feeders alike have all been down this unfortunate road before,” Fish said. “When kills normalize, futures and cash prices will likely rally and this time, it’s unlikely serious damage will have been done fundamentally—as long as the disruptions are resolved relatively quickly.”
Feeder cattle
Feeder cattle futures were also lower, with the January contract down $1.17 to $160.92 and the March contract down $1.32 to $165.35. The CME Feeder Cattle Index gained 19 cents to close at $161.98.
Corn futures took a hit as well, with the March contract down 7 cents to $5.99 and the May contract down 6 cents to $6.01.
“Watching how sale barns perform this upcoming week will be insightful as the market still looks to the live cattle complex and sees opportunity given that supplies should favor producers in the near future,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments.
“But if processing speeds don’t reach some sort of normalcy here soon, supplies could get backed up, and amid $6 corn, feeders can’t take too much of a gamble.”
Missouri: Joplin Regional Stockyards in Carthage sold 11,000 head Monday. Compared to a week earlier, feeder steers under 525 lbs. sold $5-7 higher, with heavier weights trading steady to $2 higher. Feeder heifers sold steady. Benchmark steers averaging 770 lbs. sold between $158-164.50 and averaged $161.30.
Oklahoma: Oklahoma National Stockyards in Oklahoma city sold 17,000 head Monday. Compared to the week prior, feeder steers sold unevenly steady and feeder heifers sold $2-4 higher. Steer and heifer calves sold steady to $3 higher. Benchmark steers averaging 776 lbs. sold between $154-157 and averaged $155.73. — Anna Miller, WLJ managing editor
