Monday markets
The livestock complex is off to a strong start this week, with cattle futures extending their October rally to new contract highs.
Live cattle futures closed triple digits higher, with the October contract $2.10 higher to close at $240.57 and the December contract up $2.22 to $244.75.
Cash trade was light, with 353 head sold—not enough for a market trend. On the formula side, 29,700 head averaging 935 lbs. sold for an average of $370.36.
Cash trade for the week ending Oct. 12 was 54,151 head. Live steers averaged $234.07, and dressed steers averaged $362.52.
“Last Friday afternoon, it appeared that packers might have been shut out in the negotiated fed cattle trade,” Cassie Fish, market analyst, wrote in The Beef. “But the USDA tally this morning shows packers purchased nearly 56k head, of which 16k head were bought with time. In order to secure needed inventory, packers paid up $3.31/cwt with the 5-area live steer average price, $234.07.”
Today’s slaughter is estimated to be 106,000 head, 5,000 head above the prior week.
“Last week’s slaughter was 547k head, down 15k from the prior week and above some expectations, considering one major fed cattle plant was dark,” Fish wrote. “Estimates so far for this week are around the 550k mark. That compares to 553k in 2015 and is well below any other year.”
Boxed beef prices were mixed on 173 loads, with the Choice cutout $1.66 lower at $363.91 and the Select cutout $3.36 higher at $349.75.
Feeder cattle
Feeder cattle futures started higher but pushed back during the trading day. The October contract was unchanged at $375.50 and the November contract climbed 82 cents to close at $376.72.
The CME Feeder Cattle Index was 57 higher to $367.92.
Corn futures were lower, with the December contract down 2 cents to $4.10 and the March contract a penny lower to $4.27.
Missouri: Joplin Regional Stockyards in Carthage sold 7,500 head on Monday. Compared to the previous auction at the mid-session, feeder steers are selling steady to $10 higher, with feeder heifers selling $5-15 higher. Benchmark steers averaging 721 lbs. sold for $375-411 and averaged $403.39.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 5,500 head on Monday. Compared to the previous auction at the mid-session, feeder steers sold $10-20 higher and feeder heifers traded $5-15 higher. Steer and heifer calves sold $20-30 higher. Benchmark steers averaging 766 lbs. sold for $372-388, and averaged $383.65. — Charles Wallace, WLJ contributing editor
