Monday markets
After a week of volatility in the cattle and grain complex, Monday started with some optimism, with live and feeder cattle closing higher.
Live cattle closed in the green, with the April contract up $2.12 to $137.90 and the June contract up $1.40 to $133.92.
Cash trade was mostly inactive, with 743 head selling for $138. On the formula side, 40,200 head averaging 867 lbs. sold for $226.28.
The Cattle Report stated cash trade in the South sold mainly for $140, $2 lower. Northern cattle sold for $140-143 live and $223-225 dressed, also $1-2 lower. The highest cattle remained in Iowa. “High feed costs and a favorable basis weakened the resolve of cattle owners to hold for higher prices,” the Cattle Report wrote.
Cash trade last week totaled 75,674 head, with 70 percent of the contracts for nearby delivery. Live steers averaged $140.64 (down $2.53), and dressed steers averaged $224.58 (down $2.60).
Slaughter is projected to be 125,000 head, 3,000 above last week and 5,000 above last year.
Total beef production under federal inspection for the week ending March 5 was estimated at 553.1 million lbs., up 1.5 percent from the prior period and 0.3 percent above last year.
Boxed beef prices were higher on 102 loads, with the Choice cutout up 38 cents to $254.71 and the Select cutout higher $1.81 to $250.22.
Feeder cattle
Feeder cattle closed higher on corn volatility, with the March contract up $1.47 to $154.60 and the April contract up $2.42 to $159.67. The CME Feeder Cattle Index was down 82 cents to $155.37.
“You’d think the market would still be leery of extending itself as the corn market’s deferred contracts are rallying, but applying logic to war markets doesn’t always pan out,” ShayLe Stewart, DTN livestock analyst, wrote in the midday comments. “It’s likely that feeder cattle/calves continue to trade lower in sale barns again this week as buyers struggle to find a place where their cost of gains make sense amid the corn market’s current state.”
Nearby corn contracts were lower, with the March contract down 7 cents to $7.49 and the May contract down 3 cents to $7.50. Deferred contracts were higher by 6 to 18 cents a bushel at the closing.
Missouri: Joplin Regional Stockyards in Carthage sold 10,000 head by midday trading Monday. Feeder steers and heifers under 550 lbs. traded $10-15 lower. Joplin reported there were not enough heavier cattle yet for a trend. Benchmark steers averaging 728 lbs. sold for $158.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 11,000 head by mid-session Monday. Feeder steers sold $4-6 lower. Feeder heifers traded $5-8 lower. Steer and heifer calves were lightly tested, but a lower undertone was noted. Benchmark steers averaging 767 lbs. sold between $145-155, averaging $150.65. — Charles Wallace, WLJ editor
