Monday markets
It was a slow start to the week in the cattle markets, with no cash trade and futures lower on the board.
Live cattle futures were lower, with the June contract down 77 cents to $132.82 and the August contract down 95 cents to $132.90.
Cash trade was at a standstill today, and no cattle were sold.
On the formula side, a total of 46,200 head averaging 856 lbs. sold for an average of $220.06.
Cash trade for the first week of June totaled 84,397 head. Live steers averaged $138.59, and dressed steers averaged $222.25.
“June is an important month for beef slaughter as it can either propel or cripple the market in regard to on feed numbers during the hottest summer months,” wrote ShayLe Stewart, DTN livestock analyst, in her midday comments.
“Historically speaking, June isn’t a month when rallies are anticipated. But, as the market wrestles with the fact that leverage is shifting from packers to feedlots/cow-calf producers, there’s a lot up in the air.”
Slaughter for the day is projected at 125,000 head, much larger compared to last Monday’s limited number of 3,000 head due to the Memorial Day holiday. A year ago, slaughter totaled 117,000 head. Last week’s slaughter is estimated at 603,000 head.
“Though the actual number won’t be reported for a few weeks, that estimate is the largest Memorial Day slaughter since 2011,” said Cassie Fish, market analyst, in The Beef.
“That is no small feat. There was a one day fed slaughter estimate last Wednesday of 101K, which if it holds up, would be the largest daily fed slaughter since 2012.”
Boxed beef prices were higher on 70 loads. The Choice cutout gained $2.32 to close at $269.58, and the Select cutout gained $1.07 to close at $251.09.
Feeder cattle
Feeder cattle futures were also lower today. The August contract lost $1.90 to close at $171.97, and the September contract lost $1.75 to close at $174.55.
The CME Feeder Cattle Index gained an impressive $4.24 to close at $158.53.
Corn futures had a good day, with the July contract up 15 cents to $7.42 and the September contract up 13 cents to $7.14.
“The feeder cattle market is patiently waiting to see how the nation’s sales perform in the upcoming weeks as feeder cattle will begin to sell, but largely, the market will be dictated by weather, the corn market’s behavior and the live cattle market’s positive/negative attitude,” Stewart said.
Missouri: Joplin Regional Stockyards in Carthage sold 10,500 head on Monday. Compared to a week earlier, at the mid-session, feeder steers traded steady, and feeder heifers traded $4-7 higher. Benchmark steers averaging 769 lbs. sold between $156-168, averaging $160.49.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 9,000 head on Monday. Compared to two weeks earlier, at the mid-session, feeder steers sold $5-8 higher, and feeder heifers sold $6-12 higher. Steer calves sold $10-12 higher, and heifer calves sold $2-6 higher. — Anna Miller, WLJ managing editor
