Monday markets
The cattle markets opened the week on a steady note.
Live cattle futures were mixed over the day. The October contract lost 17 cents to close at $235.80, and the December contract gained 12 cents to close at $237.57.
“CME cattle futures are in correction mode, following through to the downside early today after the inside week with a lower close posted on Friday,” said Cassie Fish, market analyst, in The Beef. “For now, no technical damage has been done, just a market in need of a correction that is already underway.”
Cash trade for the day was light, with only 15 head recorded as sold by the afternoon. On the formula side, a total of 38,500 head averaging 927 lbs. averaged $386.23.
Cash trade for the week ending Sept. 7 totaled 73,490 head. Live steers averaged $242.64, and dressed steers averaged $383.20.
Slaughter for the day is estimated at 106,000 head, compared to 2,000 head a week earlier (Labor Day). Slaughter a year ago totaled 144,315 head. Total slaughter for last week is projected at 487,000 head.
Boxed beef prices were mixed on 118 loads. The Choice cutout lost $1.07 to close at $409.69, and the Select cutout gained 15 cents to close at $385.34.
“Last week, two important things happened,” Fish said. “One, packers ran the smallest Labor Day production schedule in modern history. The second achievement by the beef packer was purchasing 73.5K fed cattle at about $1/cwt lower than the prior week,” she said. “Packers were able to buy a hefty number at lower money, and it’s been a long time since that happened.”
Feeder cattle
“Thankfully, demand in the countryside for calves and feeders has remained incredible, which consequently adds some fundamental support to the complex as well,” said ShayLe Stewart, DTN livestock analyst, in her midday comments.
Feeder cattle futures closed higher. The September contract gained $1.12 to close at $360.95, and the October contract gained $1.27 to close at $359.17.
The CME Feeder Cattle Index gained $2.61 to close at $363.96.
Corn futures were modestly higher, up 4 cents on the September contract to $4.03 and up 3 cents on the December contract to $4.21.
Missouri: Joplin Regional Stockyards in Missouri sold 13,500 head on Monday. Compared to the last sale held two weeks earlier, feeder steers under 450 lbs. sold $5-10 lower and heavier weights sold steady to $10 higher. Feeder heifers sold unevenly from $10 lower to $12 higher. Benchmark steers averaging 766 lbs. sold from $361-383, averaging $369.10.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 9,400 head on Monday. Compared to the last test two weeks earlier, feeder steers sold steady to $3 lower and feeder heifers sold mostly steady. Benchmark steers averaging 773 lbs. sold from $360-374, averaging $368.12.
South Dakota: Sioux Falls Regional in Worthing sold 3,339 head on Monday. Compared to two weeks earlier, there were few comparable sales of feeder steers and heifers, but they sold steady to firm. A group of steers averaging 822 lbs. sold from $364-376, averaging $372.26. — Anna Miller Fortozo, WLJ managing editor
