Monday markets
After a week of modest gains, markets were all down today—except for corn.
Live cattle futures were lower, with the June contract down 72 cents to $122.10 and the August contract down $1.20 to $121.60.
There was some cash trade that took place today with 6,624 head changing hands. Live steers sold between $122-126.50 and dressed steers averaged $202.On the formula side, a total of 47,400 head averaging 862 lbs. sold for $198.11.
Cash trade last week was higher in price, but dismal in volume. Only a total of 48,965 head sold on the negotiated cash market, compared to a week earlier at 79,496 head (also not a large volume). Live steers averaged $125.35 and dressed steers averaged $198.07.
“The million-dollar question is at what point will fed supplies decline to the point where cattle owners are able to extract sharply higher prices?” asked the Cattle Report. “A key consideration for profitability at the live end of the supply chain will rest with the future price of grain.”
Slaughter through Monday totaled 118,000 head—the same as last Monday. Slaughter through last Saturday is projected to reach 661,000 head. Final total slaughter for the week ending Saturday, June 12 was 670,297 head—right on target.
“Word on the street is that packers have a lot of cattle contracted for July and they will be pulling on those late this week,” remarked Cassie Fish, market analyst in The Beef. “Beef production the last six consecutive weeks has exceeded the last several years.”
Boxed beef prices were lower on 119 loads, with the Choice cutout down $7.13 to $297.43—finally under the $300 mark—and the Select cutout down $2.22 to $273.96.
Feeder cattle
Feeders were down substantially today as corn found some momentum higher. August feeders lost $3.20 to $156.35 and September feeders lost $2.17 to $159.07. The July corn contract almost hit limit up, gaining 39 cents to $6.75. The September corn contract gained 28 cents to $5.58.
The CME Feeder Cattle Index lost 11 cents today, bringing the contract down to $146.18.
“Given the rally and the recently found demand that buyers have been asserting at sales across the country, the feeder cattle contracts most likely could have traded higher if the corn market would have been modest in its rally,” remarked ShayLe Stewart, DTN livestock analyst, in her midday comments.
“But a rally that flirted with closing limit higher was a bit much for the feeder cattle contracts to stomach Monday.”
Missouri: Joplin Regional Stockyards in Carthage sold 9,000 head Monday. Compared to the last week, steers and heifers sold steady to $4 higher, with most advances on weights over 700 lbs. Benchmark steers averaging 771 lbs. sold between $143.50-156.25.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 9,200 head Monday. Compared to the prior sale, feeder steers and heifers sold $2-4 higher. Steer calves were lightly tested and a few sales were $4 higher, while heifer calves sold $2-8 higher. Benchmark steers averaging 724 lbs. sold between $143.50-154.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 1,633 head Monday. Compared to a week earlier, feeder steers and heifers sold unevenly steady, except steers 850-900 lbs. sold steady to $5 higher; heifers 750-800 lbs. sold $1-2 higher; and 900-950 lbs. sold $7-8 higher. — Anna Miller, WLJ managing editor
