Monday markets
The CME Group’s annual price limit reset for live cattle and feeder cattle contracts went into effect today.
The price limit for live cattle futures will increase $1.25 from $7.25/cwt to $8.50/cwt. The new expanded limit will be $12.75/cwt. The price limit for feeder cattle futures will increase $1.50 from $9.25/cwt to $10.75/cwt. The new expanded limit will be $16/cwt.
Live cattle futures closed higher, up 75 cents on the June contract to $249 and up $1.55 on the August contract to $240.60.
“The spot August contract is still trading below its 40-day moving average, which will remain a difficult threshold for traders to move past without sufficient fundamental support,” wrote ShayLe Stewart, DTN livestock analyst, in her midday comments.
Cash trade for the day totaled less than 300 head. No market trends were noted. On the formula side, a total of 25,200 head averaging 951 lbs. averaged $412.77.
Cash trade for the week ending May 31 totaled 56,249 head. Live steers averaged $256.88, and dressed steers averaged $405.25.
Slaughter for the day is estimated at 104,000 head, compared to 1,000 head a week earlier during the Memorial Day holiday. Total slaughter for a week earlier is expected at 448,000 head.
Boxed beef prices were mixed on 79 loads. The Choice cutout gained $1.36 to close at $392.83, and the Select cutout lost 9 cents to close at $383.09.
“Traders will be looking at post-Memorial Day beef counter clearance for signs the box prices might recover following a very light holiday week slaughter,” the Beef Report wrote. “June has historically been a good month for beef sales despite May being the official national beef month.”
Feeder cattle
“Upon seeing the live cattle contracts trading higher, the feeder cattle contracts have also jumped higher—pleased to take any support the market can attract at this point,” Stewart said.
Feeder cattle futures closed higher, up $3.12 on the August contract to $351.55 and up $3.32 to $348.67 on the September contract.
The CME Feeder Cattle Index gained $3.77 to close at $373.40.
Corn futures were lower, down 2 cents apiece on the July and December contracts, closing at $4.44 and $4.72, respectively.
Missouri: Joplin Regional Stockyards in Carthage sold 12,000 head on Monday. Compared to the last sale held two weeks earlier, at the mid-session, feeder steers sold $5-10 lower, except five-weight steers, which sold $3 higher. Feeder heifers sold $5-25 lower. Benchmark steers averaging 773 lbs. sold from $363-380, averaging $370.63.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 5,500 head on Monday. Compared to the last sale held two weeks earlier, feeder steers and heifers sold $5-15 lower, with instances of $20 lower. Steer and heifer calves sold $10-20 lower. Benchmark steers averaging 765 lbs. sold from $355-378.50, averaging $364.96.
South Dakota: Sioux Falls Regional in Worthing sold 2,623 head on Monday. Compared to a week earlier, feeder steers and heifers sold steady to $4 higher. Benchmark steers averaging 730 lbs. sold from $397-444, averaging $411.15. — Anna Miller Fortozo, WLJ managing editor
