Monday markets
“It was a grandiose day for the cattle complex, as the futures complex switched direction from Friday’s descent lower to a higher trajectory throughout Monday,” wrote ShayLe Stewart, DTN livestock analyst, in her midday comments.
Live cattle futures were several dollars higher for the day. The October contract gained $4.62 to close at $234.60, and the December contract gained $4.35 to close at $236.27.
“Last Friday’s dramatic futures market sell-off turned out to be a big head fake,” wrote Cassie Fish, market analyst, in The Beef. “Expectations that the Secretary of Agriculture might mention the reopening of the Mexican and U.S. border to feeder cattle trade when she made remarks Friday afternoon proved to be incorrect. Instead, she gave an update on the effort to fight the invasion of the New World Screwworm into the U.S., but nothing more.”
Cash trade for the day was light, with about 50 head sold. On the formula side, a total of 30,900 head averaging 938 lbs. averaged $389.55.
Cash trade for the week ending Sept. 14 totaled 61,263 head. Live steers averaged $239.42, and dressed steers averaged $376.49.
Slaughter for the day is estimated at 110,000 head, compared to 106,000 head a week earlier. Total slaughter for last week is projected at 561,000 head.
“Packer margins have been compressed with weaker boxes but are still a bit black,” Fish said. “Packers continue to manage production schedules carefully, last week’s estimated slaughter of 561k head coming in below expectations. Right now expectations are for a 560k head repeat this week.”
Boxed beef prices were mixed on 101 loads. The Choice cutout lost $1.51 to close at $398.53, and the Select cutout gained 36 cents to $378.80.
Feeder cattle
Feeder cattle futures skyrocketed over the day. The September contract gained $8.40 to close at $358.80, and the October contract gained $8.70 to close at $354.50.
The CME Feeder Cattle Index lost 40 cents to close at $363.08.
Corn futures were modestly lower. The December contract lost about 6 cents to close at $4.23, and the March contract also lost 6 cents to close at $4.41.
Missouri: Joplin Regional Stockyards in Carthage sold 7,339 head on Monday. Compared to the last sale, feeder steers under 750 lbs. sold $2-10 lower. Heavier weights sold from $3 lower to $8 higher. Feeder heifers sold from $2-15 lower with the most loss on weights under 700 lbs. Benchmark steers averaging 783 lbs. sold from $353-372, averaging $364.54.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 6,000 head on Monday. Compared to the previous sale, feeder steers sold steady and feeder heifers sold $2-6 lower. Steer and heifer calves sold $10-20 lower with unweaned calves selling sharply lower. Benchmark steers averaging 791 lbs. sold from $350-366, averaging $363.97.
South Dakota: Sioux Falls Regional in Worthing sold 1,600 head on Monday. Compared to a week earlier, feeder steers and heifers sold with steady to lower undertones compared to the previous week’s larger offering. Benchmark steers averaging 737 lbs. sold from $380-414, averaging $401.01. — Anna Miller Fortozo, WLJ managing editor
