Monday markets
Live cattle futures found some gains today, while higher corn boded for lower feeder cattle futures.
The August live cattle contract gained 60 cents to $119.82 and the October contract gained 22 cents to $125.80.
“Last week, the market fought strenuous technical pressure as, late in the week, traders wouldn’t even consider supporting the live cattle sector,” remarked ShayLe Stewart, DTN livestock analyst.
There was a small amount of cash trade that took place today. A total of 3,826 head sold, with live steers averaging $125. There was not a market trend for dressed steers. On the formula side, 42,900 head averaging 850 lbs. sold for $194.72.
Cash trade for the week ending July 11 totaled 82,381 head. Live steers averaged $122.52—almost $1.50 lower from a week earlier—and dressed steers averaged $198.19, 5 cents lower than the week prior.
Slaughter for the day is estimated to reach 120,000 head. A week earlier, only 8,000 head were slaughtered due to the Fourth of July holiday. Last week’s slaughter total is estimated at 582,000 head.
Boxed beef prices were mixed today. On 123 loads, the Choice cutout lost $3.59 to $275 and the Select cutout gained $1.36 to $258.77.
USDA’s latest WASDE (World Agricultural Supply and Demand Estimates) report projected third-quarter steer prices up $5 from last month to average $120, and fourth-quarter steer prices up $3 to $123.
Beef imports were unchanged from a month ago, but exports grew by 80 million pounds to 3,422 million pounds for 2021.
Feeder cattle
The WASDE report showed the month’s outlook for corn supplies to be higher. It also called for greater feed and residual use, increased exports, and higher ending stocks. Corn beginning stocks were lowered 25 billion bushels. Corn production for 2021-22 is forecast to be 175 million bushels higher.
Corn futures soared nearly limit up on the nearby contract, sending feeders lower. The August feeder cattle contract lost $1.02 to $158.15 and the September contract lost 82 cents to $161. The July corn contract was up 39 cents to $6.69 and the September contract was up 15 cents to $5.45. The CME Feeder Cattle Index gained $1.05 to close at $153.82.
“The feeder cattle market has been a hard one to call as drought is forcing producers to liquidate on their cow herds and ship their calves at earlier dates, but yet prices have been relatively strong as buyers know that there aren’t as many calves to sort through this year,” Stewart said.
“Last week, throughout the nation, feeder cattle traded on average $6-10 stronger than the previous week and so with a strong undertone bolstering the market, the sellers at Western Video Market are expected to do well this week as buyers continue to seek calves aggressively.
Iowa: Russell Livestock in Russell sold 1,105 head Monday. Compared to the last report two weeks earlier, steers calves 450-550 lbs. sold $5 higher and over 550 lbs. sold $3 lower to $5 higher. Heifer calves 400-650 lbs. sold firm and 650-800 lbs. sold $7 higher. Benchmark steers averaging 753 lbs. sold between $153-161.50, averaging $159.74.
Missouri: Joplin Regional Stockyards in Carthage sold 4,500 head Monday. Compared to two weeks earlier, feeder steers and heifers sold steady to $2 higher at mid-session. Demand was good to very good. Benchmark steers averaging 757 lbs. sold from $151-156, averaging $153.55.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 8,700 head Monday. At mid-session, feeder steers and heifers traded $3-5 higher than two weeks earlier. Steer calves sold $1-2 higher and heifer calves sold $3-5 higher. Benchmark steers averaging 771 lbs. sold between $145-155, averaging $151.49.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 2,845 head Monday. Compared to two weeks earlier, feeder steers and heifers sold unevenly steady. Benchmark steers averaging 781 lbs. sold between $149.75-155, averaging $150.90. — Anna Miller, WLJ managing editor
