Monday markets
Cattle futures started the week off higher, encouraged by trader optimism and expectations of higher holiday beef demand.
Live cattle futures gained a couple of dollars. The December contract gained $2.52 to $232.20, and the February contract gained $2.72 to close at $230.40.
“More than anything, traders are reappraising the marketplace, hoping that more fundamental support will arise and that traders will be able to push prices above and beyond the market’s 100-day moving average, which is a threshold traders aren’t confident that the market can successfully move past right now even though prices are trading higher,” wrote ShayLe Stewart, DTN livestock analyst, in The Beef.
Cash trade for the day was light, with less than 50 head sold. On the formula side, a total of 25,800 head averaging 966 lbs. averaged $379.21.
Cash trade for the week ending Nov. 2 totaled 55,948 head. Live steers averaged $230.84, and dressed steers averaged $358.66.
Slaughter for the day is estimated at 109,000 head, compared to 105,000 head a week earlier. Total slaughter for last week is projected at 559,000 head, compared to 573,000 head a week earlier.
“Early estimates for this week’s slaughter are 560k to 565k head,” said Cassie Fish, market analyst, in The Beef. “The holiday season is fast approaching now and middle meat demand normally seasonally grows from here on through the end of the year.”
Boxed beef prices were higher on 77 loads. The Choice cutout gained $1.12 to close at $379.25, and the Select cutout gained $1.28 to close at $359.93.
Feeder cattle
Feeder cattle futures saw several-dollar gains. The November contract gained $3.70 to close at $342.57, and the January contract gained $4.62 to close at $336.52.
The CME Feeder Cattle Index lost $4.75 to close at $347.25.
Corn futures were slightly higher, up 2 cents on the December contract to $4.34 and up 2 cents on the March contract to $4.46.
“Following the slew of events that transpired over the last two to three weeks, which negatively impacted the market—feeder cattle sales in the countryside have been noticeably lower, with prices often trading $20.00 to $50.00 lower the compared to two to three weeks ago,” Stewart said. “Hopefully if the board begins to trade higher, feeder cattle sales will find more buyer support too.”
Missouri: Joplin Regional Stockyards in Carthage sold 5,500 head on Monday. Compared to a week earlier, feeder steers sold $10-30 higher and feeder heifers sold steady to $15 higher. Benchmark steers averaging 715 lbs. sold from $351-362, averaging $353.51.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 5,400 head on Monday. Compared to a week earlier, feeder steers sold $15-25 higher and steer calves sold $20-30 higher. Feeder heifers and heifer calves sold $15-25 higher. Benchmark steers averaging 762 lbs. sold from $331-351.50, averaging $350.86.
South Dakota: Sioux Falls Regional in Worthing sold 1,378 head on Monday. Compared to a week earlier, there was a limited offering of steer and heifer calves and they were not well tested. Yearling steers and heifers sold $20-40 higher. Benchmark steers averaging 773 lbs. sold for $378. — Anna Miller Fortozo, WLJ managing editor
