Monday markets
Cattle markets rallied today.
“A tie for the second largest cattle slaughter last week since social distancing at 665k head, a friendly USDA Cattle on Feed report, and the announcement of a third successful COVID-19 vaccine are all supporting CME cattle futures today,” remarked Market Analyst Cassie Fish in The Beef.
Negotiated cash cattle trade volume was light today, with only 384 head sold. Demand in the western Corn Belt was mostly inactive and at a standstill in all other feeding regions. A total of 28,900 head of formula cattle weighing 880 lbs. were priced at $176.65 today.
Live cattle futures were green across the board: The December contract was up $1.90 to $110, and the February up $2.25 to $112.90.
Cattle slaughter for the day is estimated at 120,000 head. Boxed beef prices were up substantially: The Choice cutout was up $3.25 to $241.60 and the Select cutout was up $2.50 to $217.48.
Feeder cattle
Feeder cattle are up several dollars: The January contract was up $3.23 to $137.83, and the March contract up $2.90 to $137.28. The latest CME Feeder Cattle Index was up 19 cents to $136.94. The corn contract also gained a few cents to settle at $4.23.
“The long-term outlook for cattle prices is certainly much more positive for the second half of 2021, based just on expected cattle supply,” Fish said. “Throw a reopening economy on top of an already underlying bullish fundamental market and prices the second half of 2021 could be much stronger than what is currently reflected by the futures market.
“It also makes the bearishly viewed Q1 timeframe something to power through rather than it resembling anything remotely as bearish as what this industry has already endured in the 2020.”
Joplin Regional Stockyards in Carthage, MO, sold 10,000 head today. Compared to last week, steer calves and yearling steers under 750 lbs. sold steady; steers over 750 lbs. sold steady to $5 higher; heifer calves sold steady to $2 higher; and yearling heifers sold steady. Benchmark steers averaging 775 lbs. sold between $135-149 and averaged $144.80.
Oklahoma National Stockyards in Oklahoma City, OK, sold 9,500 head today. Compared to last week, feeder steers and heifers sold $2-4 higher on a light test. Steer and heifer calves are traded $2-5 higher. Benchmark steers averaging 775 lbs. sold between $137-143.50 and averaged $140.46. — Anna Miller, WLJ editor
