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Markets
Monday markets
The cattle market drifted lower over the day, with traders sitting back ahead of Election Day tomorrow.
Live cattle futures were lower, with the December contract down 85 cents to $185.07 and the February contract down 97 cents to $185.92.
“With open interest at its highest point since 2019, and money managed funds at their highest point in over a year, the futures complex sits with plenty of downside potential ahead of it as traders try to manage the technical risk side of the market along with keep in perspective how strong the market’s fundamentals remain,” wrote ShayLe Stewart, DTN livestock analyst, in her closing comments.
Cash trade for the day was inactive, with less than 50 head sold. On the formula side, a total of 37,900 head averaging 925 lbs. averaged $303.22.
Cash trade for the week ending Nov. 3 totaled 87,606 head. Live steers averaged $189.79, and dressed steers averaged $297.28.
Slaughter for the day is estimated at 120,000 head, a thousand head short of a week earlier. Total slaughter for a week earlier is projected at 615,000 head.
“This week’s estimate is 610k plus or minus,” wrote Cassie Fish, market analyst, in The Beef. “It’s easy to forget but cattle, wholesale beef and retail beef prices are all record high. It’s also easy to forget that record carcass weights are pushing beef production well over a year ago regardless of smaller slaughter.”
Boxed beef prices were higher on 103 loads. The Choice cutout gained 57 cents to close at $316.91, and the Select cutout gained $2.13 to close at $287.16.
Feeder cattle
“Even though Friday’s market allowed the feeder cattle complex to end the week on a stronger note, seeing the live cattle complex trade lower yet again on Monday pressured feeders into a lower trend as well,” Stewart said.
Feeder cattle futures were lower. The November contract lost 52 cents to close at $246.35, and the January contract lost 77 cents to close at $242.42.
The CME Feeder Cattle Index gained 2 cents to close at $251.
Corn futures were mostly steady, with the December contract up 2 cents to $4.16 and the March contract up less than a penny to $4.30.
Missouri: Joplin Regional Stockyards in Carthage sold 5,403 head on Monday. Compared to a week earlier, feeder steers under 625 lbs. sold from $10 lower to $2 higher. Heavier weights sold from $3 lower to $6 higher. Feeder heifers sold steady to $8 lower. Benchmark steers averaging 766 lbs. sold from $253.50-271, averaging $260.62.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 1,990 head on Monday. Compared to a week earlier, feeder cattle and calves were not well tested. Demand was moderate to good. Benchmark steers averaging 719 lbs. sold from $248-254, averaging $251.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 2,817 head on Monday. Compared to a week earlier, there was a limited number of light steers. Steers 550 lbs. sold $9 higher, 800 lbs. sold $3 higher, 850 lbs. sold $12 higher with instances of sharply higher and 950 lbs. sold $11 higher. Heifers 700 lbs. sold $8-9 lower, 750 lbs. sold $3 lower, 800 lbs. sold $1 higher, 850 lbs. sold $3-4 higher and 900 lbs. sold $7-8 higher. Benchmark steers averaging 763 lbs. sold from $243-265.50, averaging $261.48. — Anna Miller, WLJ managing editor
