Monday markets
Markets closed higher after Friday’s Cattle on Feed report was released and corn declined.
Live cattle closed slightly higher, with the June contract up 90 cents to $136.25 and the August contract up a dime to $133.47.
Cash trade was a paltry 306 head—not enough for a market trend. On the formula side, 41,200 head averaging 869 lbs. sold for $226.52.
“The big question that’s on everyone’s mind this week is: Did packers get enough cattle bought last week to suffice their needs or will they have to chase cattle again this week in the cash cattle market?” ShayLe Stewart, DTN livestock analyst, wrote in the midday comments. “Given that supplies of market-ready cattle are so thin in the North, it’s likely that feedlots will attempt to see higher prices again this week as Friday’s Cattle on Feed report was neutral to somewhat supportive and not accept anything less than steady.”
“Pieces of the report passed the sniff test, such as the higher marketings and lower placements,” Stewart wrote in Friday’s closing comments. “However, where I struggle with the report is: How can Nebraska have record on-feed numbers, but the cash market be so current that there’s a $12 premium in this week’s market because supplies of market-ready cattle in the North are so thin? And, how can May’s disappearances be 13 percent higher than a year ago and total 76,000 head? (The extreme heat wave that killed cattle in Kansas was in June, not May.).”
Cash trade through last week totaled 94,598 head. Of that, 72 percent (68,048 head) were committed to nearby delivery, while the remaining 28 percent (26,550 head) were committed to deferred delivery. Live steers averaged $144.90, and dressed steers averaged $235.14.
Slaughter for today is projected to be 125,000 head.
Last week’s slaughter is estimated at 666,000 head, 1,000 less than the previous week but 6,000 above 2021. Actual slaughter through June 11 was reported at 671,075 head.
USDA’s National Agricultural Statistics Service released the Livestock Slaughter report for May showing beef production at 2.29 billion lbs., up 3 percent from the previous year. Cattle slaughter totaled 2.81 million head, up 4 percent from May 2021. The average live weight was down 9 lbs. from the previous year, at 1,351 lbs.
Boxed beef prices were higher on 99 loads, with the Choice cutout up $3.70 to $268.68 and the Select cutout up 22 cents to $245.24.
Feeder cattle
Feeder cattle closed higher, with the August contract up $1.62 to $174.12 and the September contract up $1.72 to $176.80. The CME Feeder Cattle Index was down 62 cents to $163.09.
Corn was down on deferred contracts, with the July contract down 6 cents to $7.44 and the September contract down 21 cents to $6.61.
Missouri: Joplin Regional Stockyards in Carthage sold 10,000 head Monday. At the mid-session, compared to a week earlier, feeder steers sold $4-5 higher, and feeder heifers traded steady. Benchmark steers averaging 731 lbs. sold between $163-175 and averaged $168.57.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 8,250 head on Monday. At the mid-session, compared to a week earlier, feeder steers and heifers were not well tested in early rounds. Steer and heifer calves opened $2-4 higher. Benchmark steers averaging 702 lbs. sold for $162. — Charles Wallace, WLJ editor
