Monday markets
A surge into $7 corn sent cattle prices lower for the day, with feeders losing several dollars on the board.
“Cash cattle are expected to lend support again this week as they’ll likely trade $1 higher, but unless corn prices stabilize the feeder cattle market could be in for a tough week,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments.
Live cattle futures were lower. The October contract lost 62 cents to close at $144.70, and the December contract lost $1.05 to close at $147.
There was barely any cash trade today, with only 307 head sold. Dressed steers sold for $228.
On the formula side, a total of 25,800 head averaging 860 lbs. averaged $230.37.
“Fat cattle will likely trade higher again this week, which will bode well for the market, but traders will also be eyeing boxed beef prices and throughput as key factors to gauge the market’s strength,” Stewart said.
Total cash trade for the week ending Oct. 9 was 98,683 head. Live steers averaged $146.30, and dressed steers averaged $230.20.
Slaughter for the day is estimated at 128,000 head. Slaughter for last week is estimated at 664,000 head.
Boxed beef prices were lower on 150 loads. The Choice cutout lost $1.44 to close at $244.63, and the Select cutout lost $2.31 to close at $213.82.
Feeder cattle
“As tensions between Russia and Ukraine only worsened over the weekend (with damage done to the Kerch bridge, and the 75 missiles that Russia fired), U.S. grain prices have perked back up as the likelihood of Ukraine getting grain shipped out of the country peacefully seems like a far-fetched idea at this point,” Stewart said.
Feeder cattle futures were several dollars lower. The October contract lost $2.62 to close at $172.10, and the November contract lost $2.75 to close at $172.87.
The CME Feeder Cattle Index lost 31 cents to close at $174.61.
Corn futures saw substantial gains today, with the December contract up 15 cents to $6.98 and the March contract up 13 cents to $7.04.
Missouri: Joplin Regional Stockyards in Carthage sold 5,000 head on Monday. Compared to a week earlier, at the mid-session, feeder steers and heifers sold steady. Benchmark steers averaging 854 lbs. sold for $172.
Oklahoma City: Oklahoma National Stockyards in Oklahoma City sold 9,400 head on Monday. Compared to a week earlier, feeder steers sold $1-3 lower. Feeder heifers sold unevenly steady. Demand was moderate to good, and quality was mostly average. Steer calves sold unevenly steady. Heifer calves sold $2-4 lower. Demand was moderate for calves.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 779 head on Monday. Compared to a week earlier, there were limited price comparisons in a light test. Steers and heifers of similar weights were not well compared. Steady to lower undertones were present. Demand for the light offering was moderate. Benchmark steers averaging 776 lbs. sold between $180-181, averaging $180.84. — Anna Miller, WLJ managing editor
