Monday markets
Markets plummeted today following the news of Tyson closing its Lexington, NE, beef plant and reducing production at its Amarillo, TX, beef plant. Futures hit limit down on all cattle contracts.
“Having sufficient shackle space is a big concern for grassroot producers and the thought of losing availability is rather concerning,” wrote ShayLe Stewart, DTN livestock analyst, in her midday comments.
Live cattle futures hit limit down, losing $7.25 apiece on the December and February contracts, closing at $207.20 and $207.52, respectively.
“The crash in the cattle markets have left Friday’s (Cattle on Feed) report a recent memory and only a confirmation that supplies of cattle will not be increasing anytime soon,” wrote the Cattle Report. “More immediate concerns are the plant closing and administration attack on beef prices and coping with the sharp readjustment in prices.”
Cash trade was light today, with less than 1,000 head sold. Live steers averaged $208. On the formula side, a total of 19,300 head averaging 953 lbs. averaged $361.91.
Cash trade for the week ending Nov. 23 was 58,052 head. Live steers averaged $217.35, and dressed steers averaged $343.35.
Slaughter for the day is estimated at 120,000 head, compared to 116,000 head a week earlier. Total slaughter for a week earlier is projected at 585,000 head.
“Two factors are changing the availability of finished cattle—heavier marketing weights and placement of large amounts of dairy beef crosses that are on feed for a year resulting in slower turnover,” the Cattle Report said.
Boxed beef prices were lower on 120 loads. The Choice cutout lost 99 cents to close at $370.49, and the Select cutout lost $1.47 to close at $355.51.
Feeder cattle
Feeder cattle futures hit limit down, losing $9.25 apiece on the January and March contracts, closing at $304.97 and $297.90, respectively.
The CME Feeder Cattle Index lost $1.44 to close at $339.72.
Corn futures traded sideways, down a penny on the December contract to $4.23 and down less than a penny on the March contract to $4.36.
Missouri: Joplin Regional Stockyards in Carthage sold 8,000 head on Monday. At the mid-session, feeder steers and heifers sold $5-20 lower. Benchmark steers averaging 757 lbs. sold from $326-351, averaging $342.58.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 3,302 head on Monday. Compared to a week earlier, all classes of cattle were lightly tested. Feeder steers and heifers sold $10-20 lower. Steer and heifer calves sold $20-30 lower, and heifer calves sold up to $40 lower. Benchmark steers averaging 730 lbs. sold from $317.50-326.50, averaging $322.97.
South Dakota: Sioux Falls Regional in Worthing sold 1,931 head on Monday. Compared to a week earlier, there were too few steer and heifer calves to make full price comparisons, but much lower undertones were noted. Yearling feeder steers and heifers sold $30-50 lower. A group of benchmark steers averaging 758 lbs. sold from $300-322, averaging $307.88. — Anna Miller Fortozo, WLJ managing editor
