Monday markets
Discrepancy remains within the sectors of the live cattle market, with futures, cash cattle and boxed beef prices inconsistent to each other. Feeders were able to trade cautiously higher, with corn prices following suit.
Live cattle futures traded mixed today with the June contract up a nickel to $115.35 and the August contract down 40 cents to $118.42.
A small amount of cash trade took place today, with 1,362 selling between $119-120. There were not enough purchases for a dressed steer market trend. On the formula side, 45,900 head averaging 859 lbs. sold for $189.86.
Cassie Fish, market analyst with The Beef, noted packers are supporting cash prices because their margins are sky high at over $700 per head. Cash prices peaked this spring at $122, dipped down to $118-119 and have received support from $119-121 depending on the region, Fish said.
“CME cattle futures seem to see through this faзade, and the early rally that took spot June LC 85 points higher on the day faded and new lows for the day were made about an hour later. Now the market is just sitting, mostly lower on the day,” she remarked.
Last week’s volume of cash trade was disappointing with only 68,950 head sold. Live steers averaged $119.72 and dressed steers averaged $190.52.
Slaughter for the day is projected at 115,000 head compared to last week’s 112,000 head. Last week’s total slaughter is estimated to reach 640,000 head, comparable to the week prior. However, experts say this is still well under the necessary 670,000 head that should be processed weekly to meet summer demand. USDA actual slaughter data for the first week of May was reported at 652,687 head.
Boxed beef prices were higher several dollars each, with the Choice cutout $2.68 higher to $319.62 and the Select cutout $3.70 higher to $296.89 on 85 loads. Prices are expected to top out in the coming weeks, bringing the cash cattle market down with them.
Feeder cattle
Experts’ pre-report estimates for the upcoming Cattle on Feed report range from 103-105.7 percent for cattle on feed as of May 1. Placements are estimated to be anywhere from 117.7-139.7 percent of last year and marketings are projected to reach 131-136.4 percent.
Feeder cattle saw some slight gains today, even with greener corn futures. May feeders were up 37 cents to $137.92 and August feeders were $1.60 higher to $152.75. The price of corn has remained well below the $7 mark in recent days and closed 8 cents higher to $6.52 today on the July contract. CME’s latest Feeder Cattle Index was reported $2.17 higher to $133.90.
“The demand for feeder cattle is changing as feedlots call for heavier offerings and most operations plan a shorter stay in the feedyard,” the Cattle Report remarked. “As smaller numbers of finished cattle reach the market this summer, the quality grade will decline. Packers will build larger premiums for choice animals to encourage more finish on cattle destined for the consumer’s table.”
Missouri: Joplin Regional Stockyards in Carthage sold 5,000 head Monday. Compared to the last sale, feeder steers and heifers sold steady. Benchmark steers averaging 733 lbs. sold between $135-145.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 8,000 head Monday. Compared to the previous sale, feeder steers sold steady to $2 lower and feeder heifers sold steady. Steer calves sold $4-5 lower and heifer calves sold steady. Benchmark steers averaging 772 lbs. sold between $129-143.25.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 2,811 head Monday. Compared to a week earlier, feeder steers sold $3-6 higher and heifers sold $2-3 higher with instances of $5 higher on 800-900 lbs. Benchmark steers averaging 783 lbs. sold between $139-146. — Anna Miller, WLJ managing editor
