Monday markets
Markets seem to be finding some momentum, which is much welcomed after the tumultuous past few months.
Live cattle futures were higher, with the June contract up 67 cents to $119.27 and the August contract up $1.25 to $121.27.
Some cash trade took place today: A total of 1,493 head averaged $124. On the formula side, 48,900 head averaging 851 lbs. sold for $192.54. Cash trade for last week totaled 98,467 head. Live steers averaged $119.98 and dressed steers averaged $190.81.
Slaughter for the day is estimated to reach the standard 119,000 head. Saturday’s slaughter totaled 56,000 head and slaughter for all of last week is projected at 665,000 head. This is the level experts are recommending to keep up with summer demand. For the most part this summer, this level has been unattainable.
Boxed beef prices seem to be heading downward after maintaining their sky-high levels over the past few months. On 80 loads, the Choice cutout lost $2.09 to $335.47 and the Select cutout lost $1.80 to $303.41. The Choice-Select spread is currently at one of its highest levels at $32.06.
“The boxed beef price correction has begun and begs the question whether that decline will derail cash cattle prices,” commented Cassie Fish in The Beef. “Some think packer margins are so fat, that cash prices will just continue to hang in mid-air at $120.”
Feeder cattle
Feeders were in the green by several dollars today. The August contract was up $3.42 to $254.60 and the September contract was up $3.30 to $156.82. The CME Feeder Cattle Index was down 62 cents to $139.61.
Corn took a hit today, losing 25 cents on the July contract to $6.59. The September contract lost 31 cents to $5.98.
“The market could feel some resistance at $156 as it is as the most recent high, but largely the market’s rally will once again stem from whether or not the corn market decides to bow down or try to regain some of what Monday lost,” ShayLe Stewart, DTN livestock analyst, remarked.
She added that this comes at a pivotal time, as Superior’s Corn Belt Classic on Thursday will offer over 51,000 head. “The market will be anxious to not only see prices but to also get a feel on where producers and buyers alike think this market is headed.”
Missouri: Joplin Regional Stockyards in Carthage sold 4,947 head Monday. Compared to the prior sale, feeder steers under 650 lbs. sold $2-4 lower while steers over 650 lbs. sold steady to $3 higher. Feeder heifers under 500 lbs. sold $2-4 lower while over 500 lbs. traded steady. Benchmark steers averaging 786 lbs. sold between $141-146.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 10,500 head. Compared to the week prior, feeder steers sold $4-7 higher, with instances of up to $10 higher. Feeder heifers sold $4-6 higher. Steer calves sold $4-6 higher while heifer calves sold $4-8 lower. Benchmark steers averaging 784 lbs. sold between $134-149.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 3,299 head Monday. Compared to the last sale, steers and heifers sold $2-6 higher with the exception of 650-700-lb. steers selling $4-6 lower. Steers 750-800 lbs. sold $8-10 higher and heifers 700-750 lbs. sold $9-10 higher. Benchmark steers averaging 770 lbs. sold between $143.10-147.50. — Anna Miller, WLJ managing editor
