Monday markets
The market scaled higher today, encouraged by lower corn prices. Feeder cattle prices stormed over $5 higher, while live cattle found some modest support.
“The futures market is rallying into Monday’s afternoon as lower corn prices come as a breath of fresh air to the entire cattle sector,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments.
Live cattle futures climbed higher, with the June contract up $2.55 to $135.20 and the August contract up $1.77 to $127.05.
Cash trade was light today, after last week’s trade started early in the week. A total of 70 head sold today—not enough for a market trend. On the formula side, a total of 33,000 head averaging 869 lbs. sold for an average of $225.86.
“In looking to what this week’s market could bring as packers bought inventory aggressively over the last two weeks, this week’s cash cattle market could be hung out to dry and see hardly any interest as packers are likely bought up,” Stewart said.
Cash trade through the last week of April totaled a whopping 135,487 head. Live steers averaged $143.53, and dressed steers averaged $232.42.
Slaughter through the day is estimated at 115,000 head, down about 10,000 head from a week earlier. Total slaughter for the last week of April is projected at 656,000 head.
Boxed beef prices were modestly higher on 79 loads. The Choice cutout gained $1.77 to close at $262.55, and the Select cutout gained 26 cents to close at $248.23.
Feeder cattle
Feeder cattle futures rocketed higher today. The May contract gained $5.07 to close at $161.42, and the August contract gained $5.80 to close at $174.07.
“Feeder cattle prices have been depressed because of extremely high priced corn prices. Today the market appears to have potentially turned the page,” said Cassie Fish, market analyst, in The Beef. “If August feeder can close above last week’s high of $178.22 this Friday, that would confirm a big change for feeders.”
The CME Feeder Cattle Index lost 40 cents to close at $155.24.
Corn futures were lower, with the May contract down 5 cents to $8.13 and the July contract down 10 cents to $8.03.
“It’s hard to believe, but in a month the market will begin to see early summer feeder cattle sales as some ranchers set out to lock in a secured bid for their calves,” Stewart said.
Missouri: Joplin Regional Stockyards in Carthage sold 6,500 head on Monday. At the mid-session, feeder steers under 675 lbs. traded $4-6 lower, with heavier weights trading steadier. Feeder heifers under 650 lbs. sold $3-7 lower, with heavier weights steady. Benchmark steers averaging 723 lbs. sold between $157-169.50, averaging $163.82.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 9,600 head on Monday. At the mid-session, feeder steers sold steady to $3 higher, and feeder heifers sold steady. Steer and heifer calves sold $2-5 lower, but not all weights were well tested. Benchmark steers averaging 726 lbs. sold between $154.50-169.50, averaging $166.74.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 1,032 head on Monday. Compared to a week earlier, feeder steers and heifers sold with higher undertones. Demand for the light offering was good. Benchmark steers averaging 780 lbs. sold between $167-170, averaging $168.06. — Anna Miller, WLJ managing editor
