Monday markets
Today was another rough day for the cattle markets: Live and feeder cattle prices were down, and cash trade was at a standstill.
“With last week’s disappointing cash trade unable to break above $114, morale throughout the live cattle sector has lessened,” commented DTN Livestock Analyst ShayLe Stewart in her midday comments. “Thankfully feedlots are relentless and are expected to price their cattle fully higher again this week.
“With boxed beef prices being the second highest they’ve ever been for this time, and live cattle prices being the lowest for late February/early March in the last 10 years, feedlots are sick and tired of these prices and are going to demand the market pay dividends here shortly.”
Live cattle contracts were down about a dollar each: The April contract was down $1.02 to $118.97 and the June contract was down 92 cents to $117.50.
A total of 118 head traded on the cash market today, not enough to establish a market trend. On the formula side however, 28,200 head averaging 889 lbs. were priced at $183.74. Last week, cash cattle trade totaled 84,242 head. Live steers averaged $114.06 and dressed steers averaged $181.60.
Boxed beef prices lost some value today on 85 loads, with the Choice cutout down $1.50 to $239.03 and the Select cutout down $2.09 to $227.64.
Slaughter seems to be back on track, with the day’s number projected at 120,000 head. Last week, slaughter totaled 666,000 head. Processors tried hard to make up for lost time from the big winter blast a few weeks ago, and succeeded in doing so. USDA released actual slaughter data for the week ending Feb. 13, which totaled 606,208 head.
Feeder cattle
“Until the market sees a surge in cash cattle prices, cattle buyers’ hands are tied as they can’t afford to buy cattle high and then sell them low with cost of gains being at or above $1 per day,” Stewart said.
Feeder cattle contracts were down, as were corn prices. The March feeder cattle contract was down $1.47 to $137.20 and the April contract was down $1.45 to $141.12. The March corn contract lost 8 cents to settle at $5.47. CME reported their Feeder Cattle Contract down 56 cents to $138.35.
Missouri: Joplin Regional Stockyards in Carthage sold 10,000 head Monday. Compared to the week prior, steers and heifers traded steady with good buyer attendance and active bidding. Benchmark steers averaging 732 lbs. sold between $134-140.25.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 12,800 head Monday. Compared to the prior week’s light test, feeder steers sold $3-4 lower; feeder heifers sold $1-3 lower. Stocker steers and calves sold $2-4 higher; stocker heifers and calves sold $5-10 higher. Benchmark steers averaging 723 lbs. sold between $133.50-159. — Anna Miller, WLJ editor
