Monday markets
The livestock complex closed mostly lower as traders looked for stronger fundamental support.
“Initially, the live cattle complex was off to a bullish start as all of its contracts were trading higher at Monday’s open, but as traders saw how close the market was to resistance pressure, they quickly changed their minds and have since gingerly walked the contracts back slightly,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments.
Live cattle futures closed lower, with the June contract down 52 cents to $253.37 and the August contract 77 cents lower to $247.15.
Cash trade was light, with 76 head sold for $262.50.
On the formula side, 25,700 head averaging 952 lbs. sold for an average of $411.68.
Cash trade for the week ending May 17 was 89,722 head. Live steers averaged $262.86, and dressed steers averaged $410.86.
“Last week, fed cattle processors paid up an average of $4.31/cwt and procured 89k head nationally,” wrote Cassie Fish, market analyst, in The Beef. “Packers are competing aggressively to insure the have adequate fed cattle inventory to supply production schedules. At $262.85/cwt, another new 5-area average price high was made and the infatigable cash fed cattle market marches on. Packers have actively pursued fed cattle offerings for the past 5 weeks.”
Today’s slaughter is estimated to be 106,000 head, 4,000 head above the prior week.
Last week’s slaughter is estimated to be 527,000 head. Total beef production under Federal inspection for the week ending May 16 was 480.4 million lbs., up 1.4% from the previous week.
Boxed beef prices were higher on 84 loads, with the Choice cutout up $2.89 to $392.14 and the Select cutout 98 cents higher to $390.23.
Feeder cattle
Feeder cattle futures closed mixed, with the May contract 12 cents higher to $368.80 and the August contract $2.60 lower to $358.85.
“An announcement over the weekend of a US/China pact increasing US agricultural exports to China has sent corn and bean prices sharply higher today and knocked feeder cattle futures down 200 to 300 points,” Fish wrote. “For now, July Corn is trading below its March high and above its April low, so in actuality, it has made no grand breakout to the upside.”
The CME Feeder Cattle Index was $2.46 to $367.63.
Corn futures showed significant gains on news of potential ag trade with China. The July contract was up 21 cents to $4.77 and the September contract was 19 cents higher to $4.82.
Missouri: Joplin Regional Stockyards in Carthage sold 8,500 head on Monday. Compared to the last auction at the mid-session, feeder steers are selling steady to $6 lower. Feeder heifers are selling from $5 higher to $7 lower. Benchmark steers averaging 764 lbs. sold for $372-377, averaging $375.94.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 7,000 head on Monday. Compared to the last auction at the mid-session, feeder steers and heifers are selling mostly steady. Benchmark steers averaging 782 lbs. sold for $363-382, averaging $372.34. — Charles Wallace, WLJ contributing editor
