Monday markets
There was green on the board to start the week, with most cattle futures hitting limit up today.
Live cattle futures were nearly all limit up today. The December contract gained $7.20 to $228.55, and the February contract—along with all other deferred contracts—was limit up $7.25 to $227.
“The ability to keep recent market lows in check could help to instill a short and potentially intermediate market floor into live cattle futures, helping to draw additional trade activity heading into the holiday season,” said ShayLe Stewart, DTN livestock analyst, in her midday comments.
However, with tomorrow being Veteran’s Day, Stewart cautioned that “with financial institutions closed, this typically significantly reduces overall trade volume and could add additional volatility to the market moves.”
Cash trade for the day was about 200 head. Live steers sold for $228, but no trend was noted on dressed steers. On the formula side, a total of 23,900 head averaging 959 lbs. averaged $373.68.
Cash trade for the week ending Nov. 9 totaled 79,188 head. Live steers averaged $228.69, and dressed steers averaged $358.13.
Slaughter for the day is projected at 113,000 head, compared to 109,000 head a week earlier. Total slaughter for last week is estimated at 560,000 head, similar to levels seen a year earlier.
“Packer margins have been red and have remained so, just less severely, as fed cattle prices softened the past three weeks,” wrote Cassie Fish, market analyst, in The Beef. “Packers continue to be forced to manage throughput due to the tight availability of fed cattle supplies, especially in the South.”
Boxed beef prices were mixed on 79 loads. The Choice cutout gained 92 cents to close at $377.32, and the Select cutout gained $1.39 to close at $359.70.
Feeder cattle
“Feeder cattle futures are leading the market higher Monday, with indications that additional support may continue to add buyer support as the week continues,” Stewart said.
Feeder cattle futures hit limit up today. The November contract gained $9.25 to $335.65, and the January contract gained $9.25 to $328.82.
The CME Feeder Cattle Index gained $2.63 to close at $349.42.
Corn futures were slightly higher, up 2 cents to $4.29 on the December contract and up 2 cents to $4.44 on the March contract.
Missouri: Joplin Regional Stockyards in Carthage sold 8,098 head on Monday. Compared to the last sale, feeder steers sold $5-15 lower and feeder heifers sold from $5 higher to $15 lower. Benchmark steers averaging 773 lbs. sold from $341-359, averaging $351.31.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 6,387 head on Monday. Compared to a week earlier, feeder steers and heifers sold steady to $5 lower in a light test. Steer calves were selling $10-15 lower, but the market was improving and could be adjusted at the close. Heifer calves sold unevenly steady. Benchmark steers averaging 726 lbs. sold from $344-359, averaging $350.29.
South Dakota: Sioux Falls Regional sold 2,490 head on Monday. Compared to the previous sale, steer and heifer calves were not well tested, but yearling feeder steers and heifers sold $5-15 lower. Benchmark steers averaging 734 lbs. sold from $340-350, averaging $343.92. — Anna Miller Fortozo, WLJ managing editor
