Monday markets
Cattle futures closed modestly higher Monday, extending their record-breaking streak as the livestock complex cautiously tested whether last week’s strong fundamental support would hold.
Live cattle futures were slightly higher, with the June contract up 70 cents to $227 and the August contract up 37 cents to $219.25.
Cash trade was nonexistent, with only 83 head sold.
On the formula side, 21,400 head averaging 883 lbs. sold for an average of $360.48.
“The true fireworks last week were found with the cash fed cattle market, which advanced $6.70/cwt based on the 5-area average at $336.62,” wrote Cassie Fish, market analyst, in The Beef. “Last week’s performance has even bulls feeling woozy and wondering if the cash market is becoming overstretched. Packers managed to purchase 78.8k head, 2k less than the prior week, while at the same time, they increased last week’s slaughter to 582k head, the largest weekly slaughter since the week ended April 5, which was 586k head.”
Today’s slaughter is estimated to be 115,000 head, the same as a week earlier. Slaughter for the prior week is projected to be 582,000 head, down 4.6% from a year ago. Total beef production under federal inspection for the week ending June 7 was 506.3 million lbs.
Boxed beef prices were higher on 90 loads, with the Choice cutout up $2.17 to $367.25 and the Select cutout up $2.20 to $358.93.
Feeder cattle
Feeder cattle futures closed up triple digits, with the August contract up $1.50 to $311.65 and the September contract up $1.57 to $310.70.
The CME Feeder Cattle Index was up $4.30 to $310.46.
Corn futures closed lower, with the July contract down 9 cents to $4.33 and the September contract down 11 cents to $4.22.
Missouri: Joplin Regional Stockyards in Carthage sold 7,000 head on Monday. Compared to the last auction, feeder steers and heifers are selling steady to $5 higher. Benchmark steers averaging 722 lbs. sold for $322-338, averaging $330.08.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 4,500 head on Monday. Compared to the last auction, feeder steers and heifers sold $5-10 higher. Steer and heifer calves are lightly tested and mostly steady. Benchmark steers averaging 726 317.00-336.50 323.02
South Dakota: Ft. Pierre Livestock in Ft. Pierre sold 10,816 head on Friday. Compared to the last auction two weeks ago, steers from 600-850 lbs. were generally $12-20 higher. Heifers from 600-899 lbs. were mostly $10-15 higher, with instances of $20 higher. Benchmark steers averaging 772 lbs. sold for $334-366, averaging $346.84. — Charles Wallace, WLJ contributing editor
