Monday markets
“It’s a grim Monday for the live cattle complex as the futures contracts are trading lower, boxed beef movement is lousy at 25 loads at midday and, with Friday’s hefty Cattle on Feed report, the market isn’t too optimistic about its nearby outcome given that supplies are about to become ample for market-ready cattle,” remarked ShayLe Stewart, DTN livestock analyst, in her midday comments.
Live cattle futures posted lower, with the April contract down 17 cents to $140.30 and the June contract down 60 cents to $136.77.
There was no cash trade today. On the formula side, a total of 52,400 head averaging 859 lbs. sold for an average of $220.36.
Cash trade through March 27 totaled 91,241 head. Live steers averaged $139.05, and dressed steers averaged $221.45.
“With supplies of market-ready cattle about to pressure the market, it’s incredibly important that throughput remains strong,” Stewart said. “Last week’s slaughter of 659,000 head was a relief, but the market needs to see that pace maintained in the weeks ahead.”
Slaughter for the day is projected at 124,000 head. Last week’s slaughter is projected at 659,000 head.
Boxed beef prices were higher on 71 loads. The Choice cutout gained $1.23 to close at $263.87, and the Select cutout gained $4.18 to close at $256.32.
Feeder cattle
Feeder cattle futures also posted lower. The March contract lost 32 cents to close at $156.10, and the April contract lost 75 cents to close at $160.82. The CME Feeder Cattle Index gained 29 cents to close at $155.11.
Corn futures were also in the red, with the May contract down 5 cents to close at $7.48 and the July contract down 4 cents to $7.30.
“The market knows, come the second half of the year, supplies are going to be thin, and that demand should boost prices higher,” Stewart said. “But in the meantime, feedlot managers are having to take a good look at their bottom line amid high feed prices and a volatile live cattle market and are trying to see where the price point for calves/feeders falls.”
Missouri: Joplin Regional Stockyards sold 5,000 head on Monday. Compared to a week earlier, at the mid-session, feeder steers traded steady to $5 higher, and feeder heifers traded steady. Benchmark steers averaging 753 lbs. sold between $158-163, averaging $161.98.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 8,700 head on Monday. Compared to the previous sale, at the mid-session, feeder steers sold $2-4 higher, and feeder heifers sold $1-3 higher. Stocker cattle sold $5-9 higher. Steer calves sold $7-10 higher, and heifer calves sold $5-9 higher. Benchmark steers averaging 779 lbs. sold between $148.50-163, averaging $156.14. — Anna Miller, WLJ managing editor
