Monday markets
The market headed higher today, bolstered by higher boxed beef prices. Cash trade for the week will likely pick up in a few days and trade steady to higher with last week.
Live cattle futures headed higher today, with the October contract up $1.05 to $144.32 and the December contract up 97 cents to $148.02.
“Given that the market appears to have found a bottom last week, higher trade isn’t out of the question so long as traders stay engaged and the market isn’t cut short with any worse news about our economy,” wrote ShayLe Stewart, DTN livestock analyst, in her midday comments.
Cash trade was limited for the day, with only 672 head sold. There were no market trends.
On the formula side, a total of 37,000 head averaging 886 lbs. sold for an average of $229.75.
“The cash cattle market is expected to trade at least steady this week, if not a little higher (even) given that showlists are current and that packers are continuing to want to buy week in and week out to avoid becoming short bought when supplies (become) inherently thinner. Showlists appear to be lighter in all feeding regions.”
Cash trade for the week ending Oct. 2 finally totaled a sizable amount at 100,258 head. Live steers averaged $144.95, and dressed steers averaged $144.20.
Slaughter for the day is estimated at 127,000 head, a couple thousand head more than a week earlier. Slaughter for last week is estimated at 664,000 head.
Boxed beef prices were higher on 116 loads. The Choice cutout gained $2.19 to close at $245.94, and the Select cutout gained $1.18 to close at $221.31.
Feeder cattle
Feeder cattle futures also found some gains today. The October contract gained $1.35 to close at $175.52, and the November contract gained $1.42 to close at $176.05.
The CME Feeder Cattle Index lost 2 cents to close at $175.44.
Corn futures were also modestly higher, with the December and March contracts each up 3 cents to close at $6.80 and $6.87, respectively.
“Higher corn prices and any more deterioration in … our economy will likely weaken feeder cattle prices, but stronger fat cattle trade and a higher tone in the live cattle contracts will add support,” Stewart said.
Missouri: Joplin Regional Stockyards in Carthage sold 5,000 head on Monday. At the mid-session, feeder steers and heifers were trading steady with a week earlier. Benchmark steers averaging 774 lbs. sold between $171-179.75, averaging $176.31.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 8,500 head on Monday. Compared to a week earlier, feeder steers sold $1-3 lower, and heifers sold mostly steady. Demand was moderate to good for feeder cattle. Benchmark steers averaging 778 lbs. sold from $165-173.50, averaging $169.36.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 2,685 head on Monday. Compared to a week earlier, there were limited price comparisons, as there were few steers and heifers with similar weights. Feeder steers 600-650 lbs. sold steady to $2 lower, and 700-750 lbs. and 900-950 lbs. sold steady to $1 higher. Other weights were not well compared. Feeder heifers 700-800 lbs. sold steady to $3 lower. Other weights were not well compared. Benchmark steers averaging 768 lbs. sold between $174.50-187.25, averaging $180.48. — Anna Miller, WLJ managing editor
