Monday markets
Markets were lower following the news of a human case of New World screwworm infestation in the U.S., although they mostly recovered over the day.
“It’s been a tumultuous morning for the cattle complex as news broke over the weekend from the CDC that a person traveling abroad in Maryland was infected with New World screwworm (NWS),” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments.
She continued, “The news obviously affected the cattle complex dramatically as strict measures have been taken with cattle imports to avoid the spread into the U.S. but thinking that it would be carried into the U.S. through a human wasn’t on most people’s radar.”
Live cattle futures closed mixed, up 27 cents on the August contract to $240.22 and down $1.05 on the October contract to $236.82.
Cash trade for the day was light, with less than 300 head sold. Live steers sold for $245. On the formula side, a total of 25,700 head averaging 921 lbs. averaged $380.83.
Cash trade for the week ending Aug. 24 totaled 79,192 head. Live steers averaged $244.31, and dressed steers averaged $386.09.
“Packers will be buying this week for next week’s holiday shortened week. Meat supplies will remain in short supply and show lists are smaller in all regions,” the Cattle Report said.
Slaughter for the day is estimated at 107,000 head, compared to 100,000 head a week earlier. Total slaughter for last week is projected at 530,000 head.
Boxed beef prices were higher on 63 loads. The Choice cutout gained 58 cents to close at $408.49, and the Select cutout gained $1.72 to close at $385.38.
“The news story may have carried shock value but has no actual bearing on cattle fundamentals or beef demand,” said Cassie Fish, market analyst, in The Beef. “If anything, it makes one wonder just how long the Mexican -U.S. border will remain closed to cattle movement.”
Feeder cattle
Feeder cattle futures were mixed, with the August contract up 50 cents to $360.85 and the September contract down 77 cents to $361.90. Deferred contracts were all lower as a result of the NWS news.
“The contracts were trading close to their limit lower this morning but have since recovered some position and are now only trading mildly lower,” Stewart said.
The CME Feeder Cattle Index gained $2.74 to close at $350.18.
Corn futures were modestly higher, up a penny on the September contract to $3.89 and up less than a penny on the December contract to $4.12.
Missouri: Joplin Regional Stockyards in Carthage sold 9,000 head on Monday. Compared to a week earlier, feeder steers sold $3-17 higher and feeder heifers sold $3-15 higher. Benchmark steers averaging 773 lbs. sold from $353-385, averaging $367.51.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 6,250 head on Monday. Compared to a week earlier, feeder steers and heifers sold $4-10 higher. Steer calves sold $10-20 higher, and heifer calves under 500 lbs. sold unevenly steady. Over 500 lbs. sold $8-12 higher. Benchmark steers averaging 765 lbs. sold from $358-377, averaging $370.68.
South Dakota: Sioux Falls Regional in Worthing sold 2,145 on Monday. Compared to a week earlier, feeder steers 850-900 lbs. sold $5-15 higher and 1,000-1,050 lbs. sold steady. Feeder heifers 750-900 lbs. sold $5-15 higher, and 900-950 lbs. sold steady. A group of benchmark steers averaging 810 lbs. sold for $361. — Anna Miller Fortozo, WLJ managing editor
