Tuesday markets
Call it a black swan event with a cyberattack against JBS affecting their computer systems worldwide. The disruption affected the cattle complex, with both live and feeder cattle trading sharply lower early and then recovering some ground at their close.
The June live cattle contract closed down $2.32 to $113.55 and the August contract lower $2to $116.60.
As of WLJ press time for the daily market wrap-up, the USDA had not reported cash trade for today, possibly due to either the holiday weekend or the cyberattack. Negotiated trade for last week totaled 82,863 head. Live steers averaged $119.77 and dressed steers averaged $190.80.
A small amount of slaughter took place on Monday with 2,000 head and slaughter for Tuesday is expected to be 94,000 head. Last week’s slaughter is expected to be 629,000 head, well short of the previous week due to the holiday weekend, but in excess of slaughter numbers for 2019.
Bloomberg reported JBS’s processing plants in Nebraska, Texas, Wisconsin and Utah—which account for 22,500 head per day—were closed due to the cyberattack. In addition to the closures, plants were running at limited capacity. JBS accounts for 23 percent of processing capacity, according to Steve Kay of Cattle Buyers Weekly.
The Daily Livestock Report published by CME Group stated much is unknown at this time and it is difficult to speculate, but a one-day disruption will impact the market and wholesale prices. Retailers and beef processors are coming from a long weekend and need to catch up with orders and make sure to fill the meat case.
Boxed beef prices climbed with the Choice cutout up $3.59 to $334.56 and the Select cutout higher $5.55 to $306.45 on 139 loads.
Feeder cattle
Feeder cattle are being hit from both ends with the cyberattack and higher corn prices. The August contract was down $2.20 to $149.15 and the September contract was down $1.55, closing at $151.97. The CME Feeder Cattle Index was down 21 cents to $136.46.
The July corn contract briefly hit limit up and closed up 32 cents per bushel to $6.88 and the September contract was higher 28 cents to $6.02 a bushel.
Wyoming: Torrington Livestock in Torrington sold 1,603 head on Friday. Compared to the last auction, slaughter and feeder cows traded $3 higher. Benchmark steers averaging 798 lbs. sold for $152.25
Iowa: Russell Livestock in Russell sold 5,250 head on Monday. Compared to the previous auction, steer calves under 650 lbs. sold mostly $2-4 higher, steers 650-750 lbs. sold $3-5 higher, while the heavier steers ended mostly steady to $2 lower. Heifer calves under 650 lbs. were $2-6 higher and heavier heifers were mostly steady to $2 higher. Benchmark steers averaging 768 lbs. sold between $138.75-152.50 and averaged $147.94. — Charles Wallace, WLJ editor
