Monday markets
The market climbed higher today, despite the ongoing JBS beef plant strike in Colorado.
“The livestock complex is trading higher into midday Monday as traders have fully jumped into the market and are noticeably supporting the complex,” wrote ShayLe Stewart, DTN livestock analyst, in her midday comments.
Live cattle futures were higher, up $2.35 on the April contract to $233.25 and up $2.92 to $231.87 on the June contract.
“Although the packing plant strike is well underway at the JBS plant in Greeley, Colorado, the cattle complex is trading higher into midday Monday,” Stewart said. “A higher trend may seem unusual given the news coverage surrounding this event and the negative toll it’s had on the market leading up to this point.
“But there are a could of reasons why the market could be trading higher as we can’t forget that the futures complex is an anticipatory market and it’s supposed to account for these things when the information is made available (as its inarguably done over the last couple of weeks), the market could also be finding some modest technical support around its 100-day moving average which is where the spot April contract started the day off from, and then last but not least, some will argue that this could be viewed as a negative factor.”
Cash trade was limited through the afternoon, with less than 20 head sold. On the formula side, a total of 16,500 head averaging 973 lbs. averaged $381.86.
Cash trade for the week ending March 15 totaled 43,139 head. Live steers averaged $234.99, and dressed steers averaged $372.08.
“Last week’s $5.11/cwt lower negotiated fed cattle prices and corresponding rally in boxed beef prices have brought fed cattle packing margins back into the black,” wrote Cassie Fish, market analyst, in The Beef. “This inspired a Saturday cattle slaughter of 17k head and hope that this week’s slaughter will improve further, despite the expected strike at the JBS Greeley, Colorado plant and plans for plant maintenance at two other plants this week.”
Slaughter for the day is estimated at 98,000 head, compared to 103,000 head a week earlier. Total slaughter for last week is projected at 525,000 head.
Boxed beef prices were higher on 56 loads. The Choice cutout gained $4.74 to close at $402.66, and the Select cutout gained $2.97 to close at $394.51.
“Consumer beef demand continues to support wholesale beef prices,” Fish said. Select beef cutout values eked out a new all time, non-COVID daily high on Friday, as the hunt for grinding material intensifies and the amount of select grade product shrinks.”
Feeder cattle
Feeder cattle futures closed several dollars higher, up $5.97 to $355 on the March contract and up $6.75 to $349.85 on the April contract.
“More than anything, it seems as though the technical support from the live cattle complex trading higher is helping drive the feeder cattle contracts higher,” Stewart said.
The CME Feeder Cattle Index lost $1.30 to close at $357.05.
Corn futures were lower, down 13 cents to $4.54 on the March contract and down 12 cents to $4.65 on the May contract.
Iowa: Russell Livestock in Russell sold 1,278 head on Monday. Compared to the sale last held two weeks earlier, steers sold mostly steady to $15 higher and heifers sold mostly steady to $5 lower. Benchmark steers averaging 726 lbs. sold from $386-415, averaging $399.75.
Missouri: Joplin Regional Stockyards in Carthage sold 6,000 head on Monday. Compared to a week earlier, feeder steers and heifers sold $5-15 higher. Benchmark steers averaging 711 lbs. sold from $380-393, averaging $390.12.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 4,305 head on Monday. Compared to the previous sale, feeder steers and heifers sold $10-15 higher. Steer calves sold $10-20 higher. Heifer calves sold $5-15 higher. Benchmark steers averaging 777 lbs. sold from $355-367, averaging $360.76.
South Dakota: Sioux Falls Regional in Worthing sold 786 head on Monday. Compared to a week earlier, there were too few comparable weights of feeder steers and heifers for a good comparison. Benchmark steers averaging 710 lbs. sold for $387. — Anna Miller Fortozo, WLJ managing editor
