Monday markets
The cattle markets were unable to trade higher today following the news of union workers finalizing their strike plans at the Greeley, CO, JBS packing plant.
Live cattle futures traded lower. The April contract lost $4.42 to close at $230.15, and the June contract lost $4.05 to close at $227.42.
“It’s almost as if the cattle complex thinks cattlemen and traders alike would grow weary if the market simply traded in a lackadaisical mundane fashion as opposed to the rollercoaster ride it turns into at times,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments.
“Which perfectly describes the market’s $3 to $4 decline Monday morning as news broke late last week that union workers will indeed strike at the JBS packing plant in Greeley, Colorado.”
The strike is expected to occur next week. JBS plans to shift production to other facilities during this time, Stewart said.
“This causes great anxiousness for the cattle complex as the market is already seeing minimal throughput from packers as they try to manage their margins to the best of their ability,” she continued.
Cash trade for the day totaled less than 50 head. There were no market trends noted. On the formula side, a total of 26,000 head averaging 958 lbs. averaged $388.51.
Cash trade for the week ending March 8 totaled 75,707 head. Live steers averaged $239.94, and dressed steers averaged $379.89.
“A retreat in cash prices to where the market started the year at $232 is not out of the question,” wrote Cassie Fish, market analyst, in The Beef. “Packers bought 76k head last week and will be in no hurry to add to inventory with the disruptions at play.”
Slaughter for the day is estimated at 103,000 head, compared to 102,000 head a week earlier. Total slaughter for a week earlier is projected at 521,000 head.
“With packer margins still red, it’s not a slam dunk that the slaughter reduction will be covered by another plant or another company,” Fish said of the JBS strike. “After all, the packing industry coughed up 7,800 head of fed cattle slaughter capacity in January after months of losses.”
Boxed beef prices were higher on 48 loads. The Choice cutout gained $4.07 to close at $391.29, and the Select cutout gained $4.67 to close at $383.62.
Feeder cattle
Feeder cattle futures were lower. The March contract lost $4.97 to close at $350.65, and the April contract lost $5.07 to close at $346.55.
“Until the live cattle complex settles down and trade in a more stable manner, the feeder cattle contracts will likely continue to scale lower,” Stewart said.
The CME Feeder Cattle Index lost $1.27 to close at $367.32.
Corn futures were lower, down 9 cents on the March contract to $4.37 and down 6 cents on the May contract to $4.53.
Missouri: Joplin Regional Stockyards in Carthage sold 6,341 head on Monday. Compared to a week earlier, feeder steers sold $2-8 lower, with the exception of four-weight steers, which sold $10-15 higher. Feeder heifers sold steady to $8 higher. Benchmark steers averaging 781 lbs. sold from $360-365, averaging $362.58.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 4,303 head on Monday. Compared to a week earlier, feeder steers and heifers sold $10-20 lower. Steer and heifer calves were lightly tested. Benchmark steers averaging 775 lbs. sold from $340-357, averaging $349.99.
South Dakota: Sioux Falls Regional in Worthing sold 1,407 head on March 9. Compared to a week earlier, feeder steers and heifers sold $10-20 lower. There was moderate to good demand. Small packages of light cattle still sold easily despite the weakness in the cattle futures. Benchmark steers averaging 784 lbs. sold from $357-382, averaging $365.45. — Anna Miller Fortozo, WLJ managing editor
