Monday markets
Bolstered by higher cash trade to end last week, the market sailed into Monday on a bright note.
“Between last week’s higher charge in the cash cattle market, combined with the continued support of strong beef, demand already this week—the market is seeming confident in its continuation of a higher trend,” wrote ShayLe Stewart, DTN livestock analyst, in her midday comments.
Live cattle futures were higher, up $1.15 to $195.20 on the February contract and up $1.27 to $197.27 on the April contract.
Cash trade for the day is estimated at 400 head. Live steers sold for $200. On the formula side, a total of 29,900 head averaging 927 lbs. averaged $310.96.
“It will be especially interesting to see how the dynamics of this week’s cash cattle market pan out as packers will loathe the idea of paying more money for cattle yet again, but on the same hand, it seems as though they’re short bought which would somewhat force them into paying up again this week,” Stewart said.
Cash trade for the week ending Jan. 5 totaled 85,514 head. Live steers averaged $198.90, dressed steers averaged $314.99.
Slaughter for the day is estimated at 109,000 head, compared to 123,000 head a week earlier. Total slaughter for a week earlier is projected at 489,000 head.
Boxed beef prices were higher on 146 loads. The Choice cutout gained $1.86 to close at $327.10, and the Select cutout gained $6.61 to close at $303.33.
Feeder cattle
Feeder cattle futures were higher, up $1.47 to $266.30 on the January contract and up $1.37 to $265.55 on the March contract.
The CME Feeder Cattle Index closed at $265.76.
Corn futures were up 7 cents to $4.57 on the March contract and up 7 cents to $4.65 on the May contract.
“It’s likely that strong feeder cattle demand is again the market’s tone this week in sale barns across the country as buyers have order to fill following the long holiday break,” Stewart said.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 7,500 head on Monday. Compared to the last sale, feeder steers and steer calves sold $2-6 higher. Feeder heifers sold $3-4 higher, and heifer calves sold $2-7 higher. Feeders and calves saw instances of up to $15 higher in spots. Benchmark steers averaging 766 lbs. sold from $261-287, averaging $269.65.
Missouri: Joplin Regional Stockyards in Carthage sold 1,847 head on Monday. There were limited receipts due to weather and therefore no market comparison. Benchmark steers averaging 778 lbs. sold from $261-266, averaging $263.07. — Anna Miller, WLJ managing editor
