Monday markets
The market kicked off to a good start today, with futures higher on the board and the expectation for cash cattle prices to be higher this week.
Live cattle futures saw some slight gains. The October contract gained 92 cents to $147.87, and the December contract gained $1.42 to $149.20.
Cash trade was minimal today, with only 106 head sold. There were not enough sales for a market trend.
“Front-end supplies of market-ready cattle are still extremely thin and if packers are going to continue to run the processing speeds they have been, they’ll need to be aggressive buyers again this week,” wrote ShayLe Stewart, DTN livestock analyst, in her midday comments.
On the formula side, a total of 49,300 head averaging 890 lbs. averaged $232.25.
Cash trade through the week ending Oct. 16 totaled 75,624 head. Live steers averaged $147.21, and dressed steers averaged $231.51.
Slaughter through Monday was estimated at 126,000 head, a couple thousand head lower than the week earlier. Total slaughter for last week is estimated at 660,000 head.
“Slaughter volumes for the past two months have exceeded prior year each week, but it will be hard to sustain year over year gains into the future as fed numbers decline and processing margins are threatened,” the Cattle Report wrote. “Saturday slaughter volumes have moderated and are an important control point for processors as they regulate supplies to stabilize prices.”
Boxed beef prices were higher on 113 loads. The Choice cutout gained $1.16 to close at $248.14, and the Select cutout gained $2.67 to close at $219.61.
Feeder cattle
“The market has seen mixed interest from feeder cattle buyers as they’re wanting to get their orders filled, but for those who are still in need of cattle, the pressuring factor of the economy’s weakened state mixed with limited room for error in break-evens doesn’t give buyers much comfort,” Stewart said.
Feeder cattle futures were higher. The October contract gained 95 cents to close at $174.75, and the November contract gained $1.62 to close at $176.40.
The CME Feeder Cattle Index lost $1.03 to close at $173.08.
Corn futures saw some slight losses, with the December contract down 6 cents to $6.83 and the March contract down 6 cents to $6.89.
Iowa: Russell Livestock in Russell sold 1,295 head on Monday. Compared to two weeks earlier, steers under 600 lbs. were higher, while steers 600-900 lbs. were lower. Heifers were mixed. Benchmark steers averaging 778 lbs. sold between $170-182.25, averaging $178.92.
Missouri: Joplin Regional Stockyards in Carthage sold 3,772 head on Monday. Compared to a week earlier, feeder steers under 525 lbs. sold steady to $4 higher, with heavier weights selling $2-5 lower. Feeder heifers traded mostly steady to $4 lower. Benchmark steers averaging 724 lbs. sold from $170.50-180, averaging $174.31.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 7,000 head on Monday. Compared to a week earlier, feeder steers sold $3 higher, and feeder heifers sold $1-4 higher. Steer calves sold steady to $2 higher, and heifer calves sold $2-4 higher. — Anna Miller, WLJ managing editor
