Wednesday markets
Markets were able to rally in relief that JBS was mostly able to resume operations today, after facing a cyberattack that compromised the company for several days.
Live cattle contracts recovered yesterday’s losses and then some. The June contract was up $3.57 to $117.12 and the August contract was up $2.65 to $119.25.
There was a sizable amount of cash trade today, with 22,951 head sold. Prices are still stuck in the same $118-120 range they’ve been in over the past couple months. Dressed steers sold between $190-193. On the formula side, 20,800 head averaging 847 lbs. sold for $195.82.
“Unless slaughter speeds kick into high gear, packers may not need many cattle this week as they are only processing around 100,000 head per day, which is far from full capacity,” remarked ShayLe Stewart, DTN livestock analyst.
The cyberattack on JBS threw a wrench in slaughter numbers for the week. Slaughter levels were already diminished due to the holiday on Monday, but now levels are even lower due to some plants being offline yesterday. The company said there would be some plants running today, but throughput must have been reduced because slaughter was still down.
Slaughter for the day is projected at only 105,000 head, compared to last Wednesday’s number of 120,000 head. To date, this brings the week’s total slaughter to 201,000 head. In comparison, the same time last week totaled 357,000 head. Last week really wasn’t considered a high slaughter volume week either, at 629,000 head.
Boxed beef prices have climbed in response, with both cutouts over $5 higher today. The Choice cutout was up $5.60 to $340.16 and the Select cutout was up $5.43 to $311.88 on 138 loads.
Feeder cattle
Feeder cattle were also able to substantially recover today. The August contract was up $3.17 to $152.32 and the September contract was up $2.82 to $154.80. The CME Feeder Cattle Index was up 4 pennies to $136.50.
Corn was down today, with the July contract down 13 cents to $6.75 and the September contract down 8 cents to $5.93.
“It’s hard telling what the market will do with never-ending chaos surrounding the packing industry and the possibility of supplies getting backed up. But, then again, with few cows lining the countryside fewer numbers could favor sellers in this scenario,” Stewart said.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 5,744 head Monday. Compared to the week prior, feeder steers were $1-4 higher with the exception of 700-750 lbs. sold steady to $2 lower; and 800-850 lbs. sold steady to $1 higher. Heifers sold steady to $2 higher with the exception of 550-600 lbs., which sold $3-6 higher. — Anna Miller, WLJ managing editor
