Monday markets
Higher corn prices sent feeders lower, but live cattle were able to come up with some gains today.
Live cattle futures closed out about a dollar higher, with the June contract up $1.10 to $133.17 and the August contract up $1.55 to $133.90.
There was a small amount of cash trade to start the week off, with 1,120 head sold. Live steers sold between $143-144, and dressed steers averaged $228. On the formula side, a total of 29,600 head averaging $841 lbs. averaged $227.58.
“With packers having ample supplies of cattle committed to them already for this week and the weeks ahead, the cash cattle market could be left high and dry this week,” wrote ShayLe Stewart, DTN livestock analyst, in her midday comments.
“And along with monitoring cash prices, watching how packers manage processing speeds in the weeks ahead will be critical as well. If packers begin to slow down production because they’ve been seeing hit/miss demand at the meat counter, then feedlots could be in for a long summer as packers could lackadaisically work their way through the market’s record number of cattle on feed.”
Cash trade through the week ending May 15 totaled 90,683 head. Live steers averaged $142.53, and dressed steers averaged $228.92. Last week’s slaughter is projected at 657,000 head.
Slaughter for the day is estimated at 124,000 head, a couple thousand head more than a week earlier.
Boxed beef prices were mixed, with the Choice cutout up $1.75 to $258.95 and the Select cutout down 46 cents to $243.90.
Feeder cattle
“The big rally in wheat and corn has … pressured feeder cattle futures to contract lows—not expected given the tight supply of feeder cattle available outside feedyards,” Cassie Fish, market analyst, wrote in The Beef. “Global commodity values continue to be impacted by the war in Ukraine.”
Feeder cattle futures closed in the red today. The May contract lost 47 cents to close at $157.50, and the August contract lost 60 cents to close at $167.42.
The CME Feeder Cattle Index lost 36 cents to close at $156.
Corn futures skyrocketed today, with the July contract up 28 cents to $8.09 and the September contract up 20 cents to $7.78.
Missouri: Joplin Regional Stockyards in Carthage sold 5,500 head on Monday. Compared to a week earlier, at the mid-session, feeder steers traded steady, and feeder heifers traded steady to $4 lower. Benchmark steers averaging 794 lbs. sold between $155-159, averaging $156.91.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 9,800 head on Monday. Compared to the prior sale, feeder steers sold unevenly steady, and feeder heifers sold $3-5 lower. Steer and heifer calves sold $4-8 lower. Benchmark steers averaging 730 lbs. sold between $158-166.25, averaging $163.82.
South Dakota: Sioux Falls Regional Livestock in Worthing sold 546 head on Monday. Compared to a week earlier, there was too light of a test to make a meaningful comparison, but lower undertones were evident. Benchmark steers averaging 726 lbs. sold for $164. — Anna Miller, WLJ managing editor
