Monday markets
The cattle complex lost triple digits on inflationary fears and an expected rate hike from the Federal Reserve. The Dow Jones lost 874 points or 2.79 percent.
“There are staggering losses today in global equities which have spilled over on almost all other markets as the economy reels from red hot inflation and an anticipated rate hike this week,” wrote Cassie Fish, market analyst for the Beef. “CME cattle futures have careened lower, leaving a huge gap and raced to the 10-day moving average. All the good feelings of a stronger cash market last week and futures taking out the May highs have evaporated.”
Live cattle closed lower, with the June contract down $2.20 to $134 and the August contract down $2.32 to $133.87.
Cash trade was at a standstill today, with only 76 head sold.
On the formula side, 44,300 head averaging 864 lbs. sold for $218.37.
Cash trade for the week ending June 12 was 88,218 head. Of that, 82 percent (72,753 head) are committed for nearby delivery, while the remaining 18 percent (15,465 head) are committed for deferred delivery. Live steers averaged $140.37, up $1.78, and dressed steers averaged $226.09, up $3.84.
Slaughter for today is projected to be 125,000 head, the same as last week.
“This past week’s slaughter at 674,000 head was large but barely over last year’s large slaughter for the same week,” the Ag Center wrote in the Cattle Report. “Exports continue strong. The upcoming slaughter week will test demand that seems to be holding strong leading up to the 4th of July. Retailers have finished purchases for the 4th and will be looking at the dog days of summer for July/August demand.”
Boxed beef prices were lower on 93 loads, with the Choice cutout down 78 cents to $270.54 and the Choice cutout down $1.44 to $247.45.
USDA’s Economic Research Service released the retail meat price spreads for May last week, showing the all fresh retail beef price in May was $7.68 per pound, an increase of 10.2 percent or 71 cents per lb. from a year earlier. Ground beef was $4.89 per lb. in May, up 8.9 percent or 40 cents. Chuck and round roasts were $7.03 and $6.31 per pound in May, both 10.2 percent and 8.3 percent higher than last year but still below record levels seen during the fall and summer of 2021. Sirloin steaks were $10.45 per pound, an increase of 5.6 percent, or 56 cents, from last year but down more than a dollar from record highs in the fall of 2021.
Feeder cattle
Feeder cattle also closed lower, with the August contract down $3.15 to $171.32 and the September contract down $2.45 to $173.60. The CME Feeder Cattle Index was down $1.58 to $160.29.
“The feeder cattle market’s weakness comes as no surprise as the rest of the marketplace veers lower as questions about our economy rise,” ShayLe Stewart, DTN livestock analyst, wrote in the midday comments. “Hopefully, by midweek the market will be able to cling to its bullish fundamentals as Superior Livestock Auction will host their annual Corn Belt Classic sale in Sioux City, Nebraska, June 15-16 where 66,500 head are set to sell.”
Corn contracts traded mixed with old crop corn trading lower and new crop higher. The July contract was down 4 cents to $7.69, and the September contract was down 2 cents to $7.30.
Missouri: Joplin Regional Stockyards in Carthage sold 5,000 head on Monday. Compared to a week earlier, at the mid-session, feeder steers and heifers are $3-5 lower. Benchmark steers averaging 730 lbs. sold between $154-159 and averaged $156.36.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 8,500 head on Monday. Compared to last week, at the mid-session, feeder steers steady to $3 higher, most advance over 800 lbs. Feeder heifers traded $1-3 higher. Steer calves were unevenly steady. Heifer calves sold $3-5 higher. Benchmark steers averaging 719 lbs. sold between $1590-167, averaging $163.96. — Charles Wallace, WLJ editor
