Monday markets
Cattle markets are getting off to a slow start Monday. Most folks are looking at slaughter capacity; today’s estimated slaughter is 117,000 head, which if maintained, should get us to the regular 650,000 head per week. Then we must clear a million head backlog of finished cattle that will also be heavy.
There will be plenty of beef on the market along with every other protein.
On the futures today, ShayLe Stewart at DTN reported, “Live cattle contracts are teetering as most of the deferred contracts are trading lower, but there is some support in the nearby markets that’s elevating those contracts.
“June live cattle are up $0.22 at $94.12, August live cattle are up $0.15 at $96.32 and October live cattle are steady at $99.37. Bids and asking prices, have yet to be established for the countryside, but new show lists appear to be somewhat lower in Kansas, and evidently lower in Texas, Nebraska and Colorado. As boxed beef prices continue to erode, this week’s cash market is anticipated to be lower.
“Cash cattle trade was incredible again last week. The USDA National Weekly Direct Slaughter Cattle—Negotiated Purchases Report shared that last week packers bought 146,864 head. Of the cattle purchased last week 131,145 are for delivery in the next two weeks, and the remaining 15,719 will be for delivery in the next 15 to 30 days.
“Feeder cattle contracts are taking the brunt of Monday’s weakness as the entire complex trades lower. The feeder cattle contracts need assurance from the live cattle market that yes indeed there is demand and the bottom isn’t falling out of the market as summer often embarks upon live cattle weakness. August feeders are down $1.10 at $133.07, September feeders are down $.95 at $134.52.”
For Monday, negotiated cash trading has been at a standstill in the Southern Plains and western Corn Belt. In Nebraska, negotiated cash trading has been inactive on very light demand. There were not enough trades for a market trend. Last week in the Southern Plains, the bulk of live trades ranged from $105-117.
For the prior week in Nebraska the bulk of live and dressed trades moved from $110-118 and $175-185, respectively. For the previous week in the western Corn Belt live trades moved from $108-114. There were 31,500 head traded on the formula grid weighing 884 lbs. to average $188.62.
Boxed beef markets continue their decline and are getting close to normal trading ranges. The Choice was valued at $254.58 today and Select was down to $233.22 on 223 loads. The 90 percent lean market held its own trading at $284.71 and the 50s were trading at $81.85.
Cassie Fish at the Beef reported today, “There were very few cattle that traded to one major packer on Friday at $114 live and $180 dressed. A $170 dressed trade in South Dakota was reported this morning to a different packer. Negotiated fed cattle prices will continue to erode, though gradually in comparison with the plunge in wholesale beef prices. Cash cattle prices this week a year ago were $113 headed to $110.
“With CME live cattle futures prices for the remainder of 2020 already priced sub-$100, futures are content to drift until the fundamentals normalize. This week’s estimated slaughter is 650,000 to 656,000 head, the largest since March, closing in on year-ago levels of 669,000—so progress continues to be made there.”
National Stockyards in Oklahoma City had a good day offering 10,700 head. Compared to last week, feeder steers were steady to $3 higher, except 800-900 lbs. were steady to $2 lower. Feeder heifers were steady to $3 lower and steer calves were unevenly steady.
Heifer calves were steady to $3 lower. Demand was good for steers and moderate for heifers. Quality was plain through attractive. More summer-like weather is in the forecast with temperatures in the mid-90s. Wheat harvest is well underway across the state. Supply included 100 percent feeder cattle (65 percent steers, 35 percent heifers). Feeder cattle supply over 600 lbs. was 77 percent. Benchmark steers weighing 4768 lbs. averaged $132.32 today.
Joplin Regional Stockyards in Carthage, MO, sold 7,000 head today and compared to last week, steer calves and heifer calves were mostly steady to $5 lower, and yearlings were $1-3 higher at midday.
Supply was heavy and demand was moderate. Supply included 100 percent feeder cattle (54 percent steers, 44 percent heifers, 2 percent bulls.) Feeder cattle supply over 600 lbs. was 53 percent. Benchmark steers weighing 717 lbs. averaged $138.03.
Turlock Livestock Auction reported their biggest feeder sale this year May 30 offered 5,435 head of calves and yearlings. Calves and yearlings with proper health protocols found the best demand, 400-500 lbs. steer calves sold between $150-175 and yearlings weighing between 700-800 lbs. traded between $122-138.50. — Pete Crow, WLJ publisher
