Monday markets
Futures markets had an active day, but ended quietly with all contracts changing by just a few pennies. June live cattle were unchanged at $96.07 and August was down 67 cents to $96. Feeder cattle were also quiet with August gaining 7 cents to $131.17 and September 10 cents higher to $132.57.
Packers were able to get 658,000 head processed last week with an aggressive Saturday slaughter. Folks are looking at 665,000 head this week; it was estimated that 119,000 were processed today.
With slaughter levels returning to near normal, beef prices have been falling. The Choice cutout was down $2.03 to $228.61 and Select was down $4.92 to $214.35. Ninety percent lean is still maintaining strength at $268.72 and fifties are trading higher at $85.92.
Negotiated fed trade was slow, as it usually is on a Monday. There were 9,869 head that traded hands today. In the Texas Panhandle, a few live purchases were reported at $100. In Kansas, a few early live purchases traded from $98-100. In Nebraska, a few early purchases were reported from $100-105 with dressed purchases from $159-167. In the western Corn Belt, a few early dressed purchases were reported at $167. There were 36,200 head priced on the formula and grid at $180.91 and weighed 889 lbs.
Last week’s feeder cattle trade was slow with few cattle being offered. Compared to the prior week, steers and heifers sold steady to $2 higher in the North Central region, while the South Central and Southeast were steady to $4 lower. Demand was moderate to good as buyers were watching how futures were reacting to outside sources and the short supply of feeder cattle in the Northern Plains this week.
On Thursday at Mitchell Livestock Auction’s Bar-B-Que special in South Dakota, a large load of 811-lb. thin-fleshed steers sold at $140.75.
Dry conditions in parts of the Plains states have made the rancher evaluate if they want to keep an open cow or older cow with udder or disposition issues for rebreeding this year.
Year-to-date (YTD) beef cow slaughter has increased this year as ground beef has been a commodity that has been in demand this spring/early summer as consumers continue to try to find the most economical way to feed their families.
Preliminary totals of YTD beef cow slaughter through May 31 is 1.5 percent more than a year ago and around 15 percent more than the previous five-year average. In converse, YTD fed cattle slaughter is 7.4 percent behind a year ago and near 2 percent behind the five-year average.
Typical daily cattle slaughter under federal inspection in January and February was around 120,000 head, more or less. This week’s business day average was 116,400 and a testament to the industry’s resolve to supply the country with a nutritious protein.
Today at National Stockyards in Oklahoma City there were 10,300 head offered, and compared to the prior week, feeder steers and heifers were steady to $3 higher; 600-700 lb.-steers not fully established. Steer and heifer calves were lightly tested thru mid-day. Demand was good to very good for feeder cattle. Quality was plain to average, and a few were very attractive. Rain is much needed especially in the western part of the state and slight chances are in the forecast for late in the week. Benchmark steers weighing 732 lbs. averaged $139.41.
Joplin Regional Stockyards offered 6,100 head today and compared to last week, steers and heifers sold steady to $5 lower except for some yearling heifers trading $1-3 higher. Market activity picked up late in the morning as lot size and quality improved. Benchmark steers weighing 760 lbs. averaged $133.74. — Pete Crow, WLJ publisher
