Monday markets
The cattle market optimistically traded higher today, with cattle futures up and corn futures down.
Live cattle futures saw several-dollar gains, with the April contract up $3.02 to $140.32 and the June contract up $2.75 to $135.70.
“Monday’s boost of support doesn’t mean the market is free and clear from all the war rhetoric, but the market might as well jump to trading higher when the opportunity presents itself because we know all too well how fast it can crumble in the opposite direction,” remarked ShayLe Stweart, DTN livestock analyst, in her midday comments.
Cash trade was inactive today, with only 133 head sold. On the formula side, a total of 42,300 head averaging 877 lbs. sold for an average of $224.
Cash trade through last week totaled 83,264 head. Live steers averaged $138.37, and dressed steers averaged $220.02.
Today’s slaughter is estimated at 125,000 head, on track with the same time last week. Total slaughter through last week is projected at 654,000 head, down a few thousand head due to a few scheduled plant shutdowns.
“Supplies of fat cattle are thin, and instead of chasing the market and cutting into their own margin when supplies are tight, it better suits (packers’) bottom line to cut production for a couple of weeks, let supplies build up and then turn the machines back to full bore once summer meat demand shows some interest,” Stewart said.
Boxed beef prices were modestly higher on 83 loads. The Choice cutout gained 80 cents to close at $255.51, and the Select cutout gained 83 cents to close at $249.94.
Feeder cattle
Feeder cattle futures also scaled higher today. The March contract gained $2.67 to close at $155.95, and the April contract gained $4.42 to close at $162.40. The CME Feeder Cattle Index lost 25 cents to close at $152.31.
Corn futures posted lower. The March contract lost 36 cents to close at $7.28, and the May contract lost 14 cents to close at $7.48.
“With some immediate pressure relieved from the input cost side of things, the market’s technicals are able to push the contracts higher, and it may even help the market’s sales throughout the countryside,” Stewart said.
“Buyers have been leery of jumping into calves and feeders over the past three weeks as inputs have simply gotten nearly impossible to pencil in, and even if you can pencil in your cost of gains to manageable prices, there’s still plenty of volatility in the cattle contracts, which makes one wonder when the market’s focus will shift back to supply and demand mechanics.”
Missouri: Joplin Regional Stockyards in Carthage sold 5,000 head on Monday. Feeder steers under 450 lbs. sold $4-10 higher, with heavier weights selling steady to $2 higher. Feeder heifers under 550 lbs. sold $5-8 higher, with heavier weights trading steady. Benchmark steers averaging 715 lbs. sold between $154-162, averaging $159.08.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 8,700 head on Monday. Feeder steers sold $2-4 higher, and feeder heifers sold $3-6 higher. Steer and heifer calves sold unevenly steady. Benchmark steers averaging 781 lbs. sold between $149-154, averaging $150.92. — Anna Miller, WLJ managing editor
