Monday markets
Futures kicked off the week with solid gains, as traders seemed willing to test resistance despite record-high levels.
Live cattle futures closed the day higher, up $1.67 on the August contract to $225.22 and up $1.80 on the October contract to $221.62.
“It seems almost barbaric to even mutter the words, ‘pressure the existing resistance levels’ in today’s market given that prices are trading at an all-time high; but at the week’s start, traders seem willing to mull over the idea of advancing the complex if indeed the market’s support is plentiful,” wrote ShayLe Stewart, DTN livestock analyst, in her midday comments.
Cash trade for the day was light, with less than 400 head sold. There were no market comparisons noted.
Cash trade for the week ending July 20 totaled 60,389 head. Live steers averaged $238.36, and dressed steers averaged $379.46.
Slaughter for the day is estimated at 105,000 head, compared to 112,000 head a week earlier. Total slaughter for last week is projected at 563,000 head.
“With margins red again, packers have reduced weekly throughput,” said Cassie Fish, market analyst, in The Beef. “Last week’s slaughter was only 563k head and this week’s a 560k head or less is estimated. “With larger cash buys the last two consecutive weeks and smaller slaughter schedules, packers are looking for a momentum shift in hopes of reducing their losses.”
Boxed beef prices were lower on 75 loads. The Choice cutout lost $1.48 to close at $372.07, and the Select cutout lost $1.44 to close at $350.05.
Feeder cattle
Feeder cattle futures also rounded out the day higher, gaining $3.60 on the August contract to $327.60 and $3.50 on the September contract to $327.70.
“Just like the live cattle complex, the feeder cattle market is up against the resistance threshold, and it’s going to take a tremendous amount of support to convince traders to move the market much higher,” Stewart said.
The CME Feeder Cattle Index gained 11 cents to close at $322.28.
Corn futures were lower, down 4 cents to $4.03 on the September contract and down 5 cents to $4.22 on the December contract.
Iowa: Russell Livestock in Russell sold 1,034 head on Monday. There were no recent auctions to make comparisons. Benchmark steers averaging 773 lbs. sold from $339-353, averaging $344.89.
Missouri: Joplin Regional Stockyards in Carthage sold 5,613 head on Monday. Compared to a week earlier, feeder steers sold $2-10 higher and feeder heifers sold steady to $3 higher. Benchmark steers averaging 771 lbs. sold from $320-341, averaging $330.07.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 4,500 head on Monday. Compared to the sale held a week earlier, at the mid-session, feeder steers sold steady to $5 higher and steer calves sold mostly steady. Feeder heifers sold steady to $3 lower, except over 800 lbs. sold up to $10 higher, and heifer calves sold $5-10 higher. Benchmark steers averaging 776 lbs. sold from $315-336, averaging $329.47.
South Dakota: Sioux Falls Regional sold 1,421 head on Monday. Compared to a week earlier, feeder steers and heifers sold mostly steady. There was very good demand for yearling steers and heifers. Nine-weight steers averaging 988 lbs. sold from $294-309, averaging $306.01. — Anna Miller Fortozo, WLJ managing editor
