Monday markets
Markets were mostly higher today, encouraged by last week’s surge in cash cattle trade and prices.
Live cattle futures were mostly higher, with the December contract up 30 cents to $132.10 and the February contract unchanged at $137.12.
There was a small amount of cash trade today, with 2,490 head sold. Live steers sold for $130, and there were not enough trades for a dressed steer market trend. On the formula side, a total of 41,400 head averaging 872 lbs. sold for an average of $202.32.
Total cash trade last week reached nearly 100,000 head again, thanks to a substantial amount of trade on Friday afternoon. Trade totaled 96,867 head, with live steers averaging $129.17 and dressed steers averaging $202.87.
“The 5-area average steer price last week was $129.23 and 97K fed cattle traded, 9K with time,” wrote Cassie Fish, market analyst, in The Beef. “That is the highest average price since February 2018, when the top for the year was $129.75.
“This is a milestone and it is highly probable that fed cattle prices will push above $130 shortly and begin to trade in the $130s over the coming winter and early spring.”
Slaughter for the day is projected at 121,000 head, the same as a week earlier.
Boxed beef prices were mixed on 103 loads. The Choice cutout lost 89 cents to close at $288.65, and the Select cutout gained $1.08 to close at $268.60.
“The cutout continues to average about $70 more than last year. Will the cutout experience a ‘real’ correction after the holiday high is in?” Fish asked. “More than likely, but even still to consume this much product at these prices is truly historic.”
Feeder cattle
Feeder cattle futures were mixed today. The November contract lost 30 cents to close at $158.57, while the January contract gained 70 cents to close at $160.30. The CME Feeder Cattle Index lost 65 cents to close at $154.62.
Corn futures were lower yet again, although minimally. The December contract lost a penny to close at $5.51, and the March contract also lost a penny to close at $5.61.
“Throughout the countryside buyers are optimistic about the cattle market, as most fully understand 2022 has the potential to be a strong year given that many producers have been forced to liquidate for one reason or another this past year; on the backside of every liquidation phase comes the buy-back cycle,” said ShayLe Stewart, DTN livestock analyst, in her midday comments.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 10,275 head Monday. Compared to a week earlier, feeder steers and heifers sold $5-7 higher. Steer calves sold $7-10 higher, and heifer calves sold unevenly steady. Benchmark steers averaging 763 lbs. sold between $150-165, averaging $159.85.
Missouri: Joplin Regional Stockyards in Carthage sold 7,000 head Monday. Compared to the last sale, feeder steers under 700 lbs. sold steady to $3 lower, and weights over 700 lbs. traded steady to $5 higher. Feeder heifers traded steady to $3 higher. Benchmark steers averaging 738 lbs. sold between $157-162.50, averaging $160.58. — Anna Miller, WLJ managing editor
