Monday markets
The cattle market opened the week on a green note.
Live cattle futures were higher, up 75 cents on the June contract to $212.97 and up $1.17 to $207.92 on the August contract.
There was no cash trade for the day. On the formula side, a total of 41,800 head averaging 905 lbs. sold for $352.84.
Cash trade for the week ending May 18 totaled 81,722 head. Live steers sold from $220-229, averaging $226.88. Dressed steers sold from $354-358, averaging $357.34.
Slaughter for the day is estimated at 115,000 head, compared to 99,000 head a week earlier. Total slaughter for a week earlier is projected at 566,000 head.
“This week the packer will be buying for a holiday-shortened slaughter week next week,” wrote Cassie Fish, market analyst, in The Beef. “Packers have not rested as of late, but have continued to top off inventory, buying more cattle with time—while at the same time keeping weekly production schedules reduced to the lowest level in 10 years for May.”
She added, “Controlling inventory goes hand in hand with slowing the advance of the cash market as packers battle red ink.”
Boxed beef prices were higher on 72 loads. The Choice cutout gained $2.32 to close at $354.81, and the Select cutout gained $1.72 to close at $344.11.
“With a normal strong seasonal for beef combined with reduced production, higher boxed beef values were fully expected and they delivered, gaining just over $6/cwt last week and printing at $353.89/cwt, boosted by strong end cuts,” Fish said.
Feeder cattle
Feeder cattle futures were lower, down $1.17 on the May contract to $295.67 and down 12 cents on the August contract to $297.47.
The CME Feeder Cattle Index lost $1.38 to close at $300.79.
“With the technical reset that shook out last week, the market is no longer up against immediate technical pressure, which could mean that traders have an easier time advancing the contracts this week if support remains plentiful,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments.
Corn futures were higher, up 4 cents on the July contract to $4.47 and up 6 cents on the September contract to $4.28.
Missouri: Joplin Regional Stockyards in Carthage sold 10,000 head on Monday. Feeder steers sold steady to $5 lower, and feeder heifers sold from $5 lower to $5 higher. Benchmark steers averaging 767 lbs. sold from $295.50-316, averaging $300.55.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 9,400 head on Monday. Compared to the previous sale, all classes of cattle sold $5-10 lower at the mid-session. Benchmark steers averaging 772 lbs. sold for $296.
South Dakota: Sioux Falls Regional in Worthing sold 2,183 head on Monday. Compared to a week earlier, feeder steers sold steady to $5 lower and heifers sold $2-6 lower. Benchmark steers averaging 741 lbs. sold from $320.50-330, averaging $325.87. — Anna Miller, WLJ managing editor
