Monday markets
The cattle complex rose to nearly break even for the day, closing mixed after opening with triple-digit losses.
Live cattle closed higher on nearby contracts and lower on deferred contracts. The June contract was up 80 cents to $133.55, and the August contract was up 2 cents to $135.37. Deferred contracts were down 25-45 cents.
“The cash cattle market is holding its breath as it knows its nearby fate is lower but the question that remains unanswered is: When?” ShayLe Stewart, DTN livestock analyst, wrote in the midday comments. “Packers have strategically bought up cattle for the upcoming weeks, which will minimize their need to participate in the cash cattle market. With boxed beef prices showing weakness in a time when, historically, the market would expect prices to be strong, packers won’t bat an eye at letting cash prices flounder as their own margins see minor setbacks from a cost-concerned consumer base.”
Cash trade was light today, with 102 head sold—not enough for a market trend. On the formula side, 37,800 head averaging 849 lbs. sold for $226.66.
Cash trade through the week ending May 8 totaled 109,180 head. Live steers averaged $143.56, and dressed steers averaged $230.89. Of that total, 70 percent (76,050 head) were committed for nearby delivery, while the remaining 30 percent (33,130 head) were committed for deferred delivery.
Slaughter for today is projected to be 121,000 head, 10,000 above last week. Total slaughter for the prior week is projected to be 657,000 head, topping the last week of April’s estimated slaughter of 649,000 head.
“The large volume took a toll on box prices and processor margins, but profits at the plants will remain well above historic averages,” the Cattle Report wrote. “The weekly slaughter size will determine the current status of fed supplies. Slaughter volumes in recent weeks have faced revision by USDA as daily volumes change with the price and demand sensitivities day by day.”
Boxed beef prices closed mixed on 131 loads. The Choice cutout was up $3.85 to $258.29, and the Select cutout was down $1.93 to $243.13.
Feeder cattle
Feeder cattle closed mixed despite lower corn futures. The May contract was up 25 cents to $159.80, and the August contract was down 47 cents to $174.22. The CME Feeder Cattle Index was up 70 cents to $156.21.
Corn futures were lower, with the May contract down 7 cents to $7.84 and the July contract down 12 cents to $7.72.
Missouri: Joplin Regional Stockyards in Carthage sold 4,000 head on Monday. At the mid-session, feeder steers were trading mostly steady. A group of steers averaging 673 lbs. sold for $175.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 6,100 head on Monday. At the mid-session, feeder steers over 800 lbs. were steady to $3 higher, and steers under 800 lbs. traded $1-4 lower. Feeder heifers were unevenly steady. Steer and heifer calves sold $4-8 higher. Benchmark steers averaging 728 lbs. sold between $158.75-172.25 and averaged $161.68.
South Dakota: Sioux Falls Regional Livestock in Worthing sold 2,372 head Monday. Compared to the previous auction, feeder steers and heifers sold with higher undertones. Overall demand was good, with black hided cattle in the biggest demand. Benchmark steers averaging 775 lbs. sold between $159-169.50 and averaged $163.10. — Charles Wallace, WLJ editor
