Monday markets
“Contract highs in the first three CME live cattle contract months? Check. New highs for the negotiated fed cattle market? Check. Wholesale beef prices advancing by dollars? Check. And a bullish USDA Cattle on Feed report and monster F.I. slaughter to boot,” wrote Cassie Fish, market analyst, in The Beef.
She remarked that no one can remember the last time every key fundamental aspect of the cattle and beef market was this bullish.
Live cattle futures were higher. The October contract gained $1.12 to $151.60, and the December contract gained $1.70 to $154.12.
Cash trade was inactive to begin the week, with only 249 head sold. There were not enough sales for a market trend.
On the formula side, a total of 44,200 head averaging 890 lbs. averaged $233.75.
Total cash trade for the week ending Oct. 23 was 102,849 head. Live steers averaged $150.13, and dressed steers averaged $235.34.
“Seasonally, more upside is highly probable for both wholesale beef and fed cattle prices over the next 4-6 weeks,” Fish said.
Slaughter for the day is estimated at 126,000 head, on pace with a week earlier. Last week’s slaughter is estimated at an impressive 673,000 head.
Boxed beef prices were higher on 86 loads. The Choice cutout gained $4.21 to close at $257.92, and the Select cutout gained $1.25 to close at $225.61.
Friday’s Cattle on Feed report showed cattle and calves on feed 1% lower than last year Placements were 4% lower, and marketings were 4% higher than 2021. Fish said this was the largest marketing number for September since 2003. Other disappearance totaled 53,000 head, 9% higher than last year.
Feeder cattle
Feeder cattle futures were also higher, with the October contract up 40 cents to $175.67, and the November contract up 80 cents to $179.15.
The CME Feeder Cattle Index gained 68 cents to close at $173.62.
Corn futures were modestly lower, with the December contract down 2 cents to $6.81, and the March contract also down 2 cents to $6.87.
“The complex is thankful for the slight dip in corn prices, but, more than anything, the feeder cattle market is still absorbing Friday’s bullish Cattle on Feed report,” wrote ShayLe Stewart, DTN livestock analyst, in her midday comments. “The slight dip in placements is relieving to the market as for months, higher placements have been noted as drought-related stressors have forced cattle into feedlots sooner than normal.”
Missouri: Joplin Regional Stockyards in Carthage sold 4,590 head on Monday. Compared to a week earlier, feeder steers under 525 lbs. sold $8-13 higher, with heavier weights trading $2-6 higher. Feeder heifers under 625 lbs. sold $9-11 higher, with heavier weights selling steady to $3 higher. Benchmark steers averaging 793 lbs. sold between $176-181, averaging $179.34.
Oklahoma: Oklahoma National Stockyards sold 9,000 head on Monday. Compared to a week earlier, feeder steers sold $2-5 higher, and feeder heifers sold $1-4 higher. Steer calves sold unevenly steady, and heifer calves sold $2-5 higher. Benchmark steers averaging 782 lbs. sold between $175.75-176, averaging $175.82. — Anna Miller, WLJ managing editor
