Monday markets
“The livestock complex is trading lower into Monday’s noon hour as traders are mulling over the news that broke about the U.S. striking bombs on Iran over the weekend, which has pushed a bearish tone over all the livestock contracts and most of the commodity markets as well,” wrote ShayLe Stewart, DTN livestock analyst, in her midday comments.
Live cattle futures were lower, down 72 cents to $222.30 on the June contract and down 45 cents to $209.37 on the August contract.
Cash trade for the day was mostly inactive, with about 35 head sold through the afternoon. On the formula side, a total of 36,200 head averaging 927 lbs. averaged $377.25.
Cash trade for the week ending June 22 totaled 59,291 head. Live steers averaged $235.31, and dressed steers averaged $376.56.
“There is widespread consensus that both boxed beef and negotiated fed cattle prices have made their seasonal Q2 top and will be trading lower for several weeks to come,” said Cassie Fish, market analyst, in The Beef on Monday. “The bears are out in force and if it weren’t for the excessive discount to cash that futures are carrying, could sit back, relax and enjoy the ride.”
Slaughter for the day is estimated at 111,000 head, compared to 103,000 head a week earlier. Total slaughter for a week earlier is projected at 554,000 head.
“These production cuts during June, a month that typically sees production increases and strong beef demand, sent boxes to their all time (non-covid) high last week of $393.79, worth remembering along with record high prices for all classes of cattle,” Fish said.
Boxed beef prices were mixed on 88 loads. The Choice cutout lost 28 cents to close at $390.22, and the Select cutout gained $6.15 to close at $383.10.
Feeder cattle
Feeder cattle futures were higher, with the August contract up 35 cents to $302.80 on the August contract and the September contract up 40 cents to $302.62.
The CME Feeder Cattle Index gained $1.16 to close at $312.62.
Missouri: Joplin Regional Stockyards in Carthage sold 8,000 head on Monday. Compared to a week earlier, feeder steers under 700 lbs. sold steady to $10 lower, with heavier weights selling steady to $10 higher. Feeder heifers sold from $7 higher to $10 lower. Benchmark steers averaging 771 lbs. sold from $310-325, averaging $316.04.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 5,200 head on Monday. Compared to a week earlier, feeder cattle and calves sold mostly steady, and unweaned calves sold $5-10 lower. Benchmark steers averaging 778 lbs. sold from $309.50-314, averaging $312.18. — Anna Miller Fortozo, WLJ managing editor
