Monday markets
“This week will be an important test of market direction that will be pulled down by futures but supported by the fundamentals,” wrote the Cattle Report.
Live cattle futures finally found some green today. The June contract gained $1.20 to close at $132.77, and the August contract gained $1.42 to close at $132.97.
Cash trade was light today, with only 774 head sold. On the formula side, a total of 40,600 head averaging 860 lbs. sold for an average of $224.59.
Cash trade through May 22 totaled 89,873 head. Live steers averaged $140.48, and dressed steers averaged $225.78.
“The number of cattle contracted for future delivery is in a major decline. The result is we will be seeing more activity in the cash markets,” the Cattle Report said.
“Most of the current contracts for future delivery are dairy or dairy cross cattle with very few beef cattle under contract when compared to more normalized years. The reasons are fairly simple—high feed cost to finish cattle and insufficient board prices to support breakeven levels.”
Slaughter for the day is estimated at 125,000 head, a thousand head more than last Monday. Last week’s total slaughter is estimated at 680,000 head, over 20,000 head more than a week earlier.
Boxed beef prices were higher on 125 loads. The Choice cutout gained $2.11 to close at $264.28, and the Select cutout gained $1.21 to close at $244.23.
“Boxed beef values will run out of steam in the coming several days and head toward their summer low—which can occur in July or September depending,” said Cassie Fish, market analyst, in The Beef. “There is no argument that beef demand is contracting in 2022 from the 2021 record.”
Feeder cattle
Feeder cattle futures were also higher today, with the May contract up 5 cents to $153.45 and the August contract up $1.70 to close at $165.62.
The CME Feeder Cattle Index lost 33 cents to close at $152.72.
“The feeder cattle contracts aren’t expected to recover much position as input costs are exuberant and the live cattle market is heading into June with record on feed numbers and the undeniable fact that cash prices are going to get cheaper,” said ShayLe Stewart, DTN livestock analyst, in her midday comments.
Corn futures saw some modest gains today, with the July contract up 7 cents to $7.86 and the September contract also up 7 cents to $7.54.
Missouri: Joplin Regional Stockyards in Carthage sold 6,500 head on Monday. Compared to the last sale, feeder heifers traded steady to $4 higher, and feeder heifers traded steady. Benchmark steers averaging 729 lbs. sold between $154.50-158 and averaged $155.26.
Oklahoma: The Oklahoma National Stockyards in Oklahoma City sold 10,000 head on Monday. Compared to a week earlier, feeder steers sold $2-4 lower, and feeder heifers sold unevenly steady. Steer and heifer calves sold $2-4 lower. Benchmark steers averaging 779 lbs. sold between $145-157 and averaged $151.65. — Anna Miller, WLJ managing editor
