Monday markets
It was a slow day for the cattle market today, with futures lower and cash trade inactive. Russia continues to place pressure on grain contracts, with the country attempting to halt grain shipments in the Black Sea.
Live cattle futures nosedived today on the last day of the October contract. The October contract lost $3.60 to close at $146.77, the December contract lost 52 cents to close at $152.47 and the February contract lost 50 cents to close at $155.82.
“After rallying to new highs, traders have drawn back from the live cattle market as they’re waiting to see how the market fundamentals hold up amid an uncertain economy,” wrote ShayLe Stewart, DTN livestock analyst, in her midday comments.
“Thankfully, the cash cattle market has been resilient and boxed beef demand has strengthened noticeably as of late. If these factors continue to hold true this week, traders may think about supporting the contracts again.”
Cash trade was inactive today, with only 148 head sold. There was no market trend available.
On the formula side, a total of 35,200 head averaging 885 lbs. averaged $238.55.
A total of 85,221 head sold for the last full week of October. Live steers averaged $152.69, and dressed steers sold for $240.
Slaughter for the day is estimated at 128,000 head, compared to last Monday’s 126,000 head. Total slaughter for last week is projected at 668,000 head.
Boxed beef prices were mixed on 96 loads. The Choice cutout gained 39 cents to close at $263.65, and the Select cutout lost 3 cents to close at $234.46.
Feeder cattle
Feeder cattle futures were also lower today. The November contract lost 25 cents to close at $177.62, and the January contract lost 92 cents to close at $177.62.
The CME Feeder Cattle Index gained $1.63 to close at $177.48.
Corn futures found some momentum, thanks to added pressure from Russia attempting to halt grain shipments in the Black Sea. The December contract gained 10 cents to close at $6.91, and the March contract gained 10 cents to close at $6.96.
“The market won’t likely be able to trade higher until two things happen: 1) The live cattle market lends support and trades higher itself; and 2) The grain market’s rally subsides,” Stewart said.
Missouri: Joplin Regional Stockyards in Carthage sold 5,500 head on Monday. Compared to a week earlier, in early trading, feeder steers and heifers sold $2-3 higher. A small group of benchmark steers averaging 720 lbs. sold for $177.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 6,500 head on Monday. Compared to a week earlier, feeder steers sold steady to $3 higher, but weights over 800 lbs. were not well tested. Feeder heifers sold steady to $2 lower. Steer calves sold $3-6 higher, and heifer calves under 500 lbs. sold unevenly steady, while those over 500 lbs. sold $2-4 higher. Benchmark steers averaging 763 lbs. sold between $175-179.50, averaging $178.40. — Anna Miller, WLJ managing editor
